A myriad of sales and retention obstacles remain to overcome in order to close out 2024 strong, and set the stage for an even better 2025.
Data from Pavilion’s Q3 2024 Pulse Report shows that
- 61% of sellers are still struggling, failing to meet year-to-date quotas.
- A paltry 16% of sales professionals are actually exceeding their targets, effectively carrying the weight of their teams.
It is clear that staying the course won’t work in a landscape where customer budget constraints, cutbacks, and delayed decisions are the norm.
Challenges for Sellers Missing Targets
Sales professionals who fall short of their quotas often grapple with three primary issues:
- High Customer Churn and Major Account Losses: Customer retention is critical, yet churn remains a significant challenge, especially for major accounts where losses have a disproportionate impact on overall revenue.
- Customer Budget Constraints and Lack of Urgency: Many deals are stalling or being delayed as budget approvals slow down and clients perceive less urgency, particularly during economic uncertainty. Without clear value alignment, these deals face increased risk of non-closure.
- Pipeline Quality and Quantity: Limited or unqualified leads reduce the chances for sellers to engage in meaningful, value-focused conversations. A narrow or misaligned pipeline often results in fewer “at-bat” opportunities with high conversion potential.
For sellers meeting or exceeding targets, there are notable differences in approach and execution. They are succeeding not just because of sales tactics, but because they leverage strategies that align closely with customer outcomes and value priorities. Their focus is on securing renewals and expansions through value realization, closing major enterprise deals through outcome focus and financial justification, and targeting the Ideal Customer Profile (ICP) with greater precision – where value can be best delivered.
Extended Sales Cycles and the Need for Value Justification
Data shows that sales cycles are extending—particularly for smaller deals, which traditionally close more quickly and could often be relied upon to “pick up the slack”. These deals are now stretching 16% longer, indicating a clear shift: even smaller prospects require more comprehensive discovery, a strong alignment of solutions to their needs, and financial justification for every expenditure.
As buyers demand more proof of value, it becomes crucial for sales teams to deliver a cost-of-doing-nothing (CODN) analysis. Such an analysis helps prospects understand the tangible risks of inaction, positioning the solution as both a strategic and financially sound choice. Proposals should include a robust financial analysis that demonstrates the return on investment, paired with a clear linkage to the customer’s long-term strategic goals.
Value Enablement for Renewal Success
To combat high churn and improve renewals, a value realization approach is vital. Customer success teams must move beyond the traditional adoption driven approach – proactively engaging customers around the value being realized from their investment.
Value enablement, with a framework, training, tools and support, to help maintain strategic alignment and assure outcomes are indeed realized, can help keep spending committed for renewals, and serve as the basis for expansion.
Precision in ICP Targeting
For teams to succeed in a tighter budget environment, defining and prioritizing the ICP is essential. Successful sales professionals focus on deals where the customer profile closely aligns with their solution’s strengths and potential value delivery, increasing the probability of conversion and customer satisfaction.
A well-defined ICP approach minimizes wasted effort on prospects that are less likely to see value, while also increasing deal velocity as ICP-aligned opportunities are inherently more qualified and likely to recognize value.
Preparing for Success with Value Enablement
As nearly a third of larger companies ($100M+ in revenue) report GTM layoffs —particularly in field sales—a focus on efficiency and precision has never been more critical. To thrive in this tough environment, sales teams must integrate value enablement practices into every phase of the sales and customer journey, focusing on:
- Proactive Renewal Engagement: Value realization must be made clear to customers, not just at renewal time but throughout the customer journey.
- Financial Justification and Strategic Alignment: Every proposal should articulate a clear financial ROI and align with strategic priorities to highlight the risks of doing nothing.
- Sharp ICP Definition and Prioritization: Focusing on ICP-aligned opportunities ensures that sales and customer success efforts are directed toward accounts that are most likely to appreciate and benefit from the solution.
The Bottom-Line: Value Enablement to Boost Quota Performance
The data is clear: sales teams embracing value enablement are more likely to overcome today’s challenges and achieve sustainable growth. This approach not only addresses the immediate needs of closing deals but also fosters long-term relationships, reduces churn, and builds a foundation for consistent renewal and expansion success.
By aligning with the insights from the Pavilion Pulse Report and embedding value-based strategies into every touchpoint, sales and customer success teams can transform challenges into opportunities and drive meaningful, measurable outcomes.
More information on the Pavilion Pulse Report can be found at: https://www.joinpavilion.com/resource/pavilion-pulse-report-q3-2024
Checkout several Value Enablement services which can help your team better reduce churn, improve quota attainment and drive better pipeline performance: https://geniusdrive.com/services/
