2 Red Alerts to Watch Out For In Your Business

Business revenue has been gradually growing over the years. Looking in from the outside, all seems rosy. After all, business seems to be growing. The team is also getting bigger over the years. Company figures are in the black. Pipelines are healthy. What could be wrong?

Before we jump for joy, we offer a few red indicators to look out for - signs of risk and gloom.

#1 Discounting More

Over the years, is the sales team giving more discounts to prospects and customers? Are the discounts also getting steeper?

A good indication would come from the sales performance where we compare revenue against margin. Is the margin staying flat or going lower? A flat or lower margin could point to a few things :

- sales team having a challenge in building a differentiation and value to prospects and customers ;

- product becoming a commodity with more sellers and higher market share.

#2 Flat or Smaller Deal Sizes

Are the average deal size getting bigger or smaller over the years? What is the ratio of small (often single product) against large-sized deals? Are the smaller deals getting more common and the larger deals shrinking?

If this deals are not getting any bigger, this would indicate to look into the way you engage and position the solution or services you offer.

Why is it important?

The market for sales is currently evolving in 3 areas :

- The rise of social sellers

- The dead of order takers, navigators and explainers

- The demand for business consultants or trusted advisor

Infographics from SalesForLife reinforces this as well. Click HERE to see the details.

If the above 2 red indicators are blinking hard within your organization, it will be advisable to take a step back to see if the team is falling short in the transition trend mentioned in the infographics.

Too often, we are busy looking ahead without seeing our tracks behind us. It is always better to be constantly changing before it is too late. As the saying goes, prevention is better than a cure.

"Too often, we are busy looking ahead without seeing our tracks behind us. It is always better to be constantly changing before it is too late. As the saying goes, prevention is better than a cure."

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Watch out for these red alerts as they could mean the world of a difference between sustaining a business and growing one.

We would love to hear your opinions regarding this week's article. Drop us a note and let's learn from one another.

Cherry-O!

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