Digitally dormant businesses losing £1m a year in sales revenue
- Three quarters of UK sales reps believe they are missing out on commission due to their employer resisting a digital sales infrastructure – totalling an average of £64k per rep per year
- Meanwhile nearly half of sellers do not believe they are being given the technology they need to succeed, despite millions being invested in digitising the salesforce
- On average, a lack of digital sales infrastructure is costing companies six figures from their bottom line each year; while around one in eight sellers believe it’s costing their employers over £1m per annum
More than three quarters of sellers (76%) believe that their employers’ digital shortcomings mean they are missing out on revenue from their bottom line. This is according to new research amongst the UK’s business community, from Showpad, the global leader in sales enablement technology, as part of its international State of Selling study.
While a lack of digital sales infrastructure is costing companies in the region of six figures from their bottom line each year, 12% of those surveyed believe this is costing their company over £1m a year, and one in 20 (5%) say it is costing their company over £5m per annum.
Three quarters of salespeople (72%) also believe that their company’s failure to deploy the latest digital sales methods is costing them significantly in commission or bonuses – amounting to an average of £64,000 per rep per year.
These insights are supported on both sides of the buyer and seller coin, with accompanying research* from Showpad demonstrating how technology is rapidly changing the business sales industry. It found that nine in ten buyers (87%) say they now prefer to be sold to virtually, forgoing traditional face-to-face sales meetings. This makes embracing the latest digital selling techniques all the more important for those leading the sales charge.
Where are businesses missing out?
Over three quarters of sellers (77%) say that they have a clear understanding of digital-first selling, but just 27% say that their business sales team fully incorporates it. Three in ten (30%) say that it is a ‘must-have’ and 39% say that it is a ‘differentiator’ to the sales experience for customers.
When asked what they’d like to see their organisation doing more of to support digital sales journeys, nearly half (49%) say ‘providing better technology and platforming’ whilst 32% selected ‘deploying a sales or revenue enablement platform’. In addition, 28% would like to see better coaching and upskilling for sales reps, whilst 27% would like them to leverage social media to reach more prospects.
Companies are, in many cases, already seeing benefits from the switch towards digital-led selling. Eight in ten (80%) believe that digital sales technologies within their sales motion have boosted revenues in the past year – on average by 23%. However, 55% say that they ‘could have more’ training when it comes to digital sales, with 20% saying they have ‘not had enough’.
Sales reps see the importance of social
The research also showed that social media is on a rising tide, with 85% of sellers saying they feel it will be important or very important to the future of B2B sales. Facebook (57%) and Instagram (56%) are the platforms sales reps believe will be most important to engaging customers and prospects and driving deals over the line. This is followed by TikTok (48%), YouTube (43%) and LinkedIn (42%).
Hendrik Isebaert, CEO, Showpad said: “Half of salespeople feel that they are simply not armed with the tools they need to succeed and this is costing them – and their employer – significantly. Nearly 40% of UK companies derive all or the majority of their income from B2B activity**, showing the value of B2B companies to the business landscape and the central role of sales and revenue generation.”
“Hybrid and digital sales technologies are fundamental to meeting customers where they are and creating tailored experiences that fulfill their preferences, with research showing this new approach to buyer engagement has boosted sales revenues by nearly 25%. Amidst a broader climate of business uncertainty and economic headwinds, now is the time to double down on all paths to revenue generation – and fast deployment of the tools and infrastructure that will shore up the financials for the foreseeable future.”
Showpad gives teams a modern sales enablement solution built to deliver rich digital insights and maximise hybrid sales. They commissioned the State of Selling research to better understand current (and rapidly evolving) attitudes around B2B sales in today’s digital-first working environment. The Showpad platform enables digital sales and also provides digital insights to enable more hybrid sales experiences.
More information and outtakes from the State of Selling Report can be found here: https://www.showpad.com/digital-selling-are-you-in-or-out/
Research conducted by Mortar Research in June 2022 amongst 500 B2B sales representatives in the UK
*Buyers research referenced within story conducted by Mortar Research in June 2022 amongst 524 UK employees who make purchases on behalf of their company. Buyers are defined as those who are or have been a buyer of a product or service on behalf of their employer in the past two years.