Is the Technology Sales Cycle Getting Longer?
With recent macroeconomic reports downplaying a recession, enterprises might be ready to open their wallets as 2023 comes to a close.
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Rise Technology Advisors co-founder Eric Ludwig (pictured) said he has seen delays in customer purchasing decisions. However, he has seen strong correlation to sentiments about the economy. Specifically, he notices a connection between reports by financial analysts and the trailing 30-90 days of sales.
But despite much publicized concerns about inflation and interest rates, the latest round of reports provide optimism, Ludwig said.
“Clients are delaying or increasing budget decisions in parallel to broader economic data. We’ve seen recent adjustments in the probability of recession. Goldman Sachs recently reduced the probability of recession from 20% to 15%, and employment remains high,” Ludwig told Channel Futures.
And Ludwig said IT decision makers are taking note.
“Many clients during this more recent cycle have begun to move forward with projects delayed in the year prior or even in the beginning of the year. The key to these decisions regardless of economic data currently is a targeted return on investment and/or short/medium term cost reduction,” he said.
According to a sales study conducted by the authors of the JOLT Effect, indecision stalls between 40% and 60% of an average rep’s sales.
CXponent CEO Joe Rice (pictured) said the indecisive customer may completely understand all the benefits of the product the partner is trying to sell. Rather, they’re stuck on how to navigate their own procurement environment, and the risks associated with pushing for a particular product.
“It’s not fear of missing out. It’s fear of messing up. It’s risk avoidance. And it’s not just risk avoidance in the actual project. Contact center has huge upside but also a really low downside if you screw it up,” Rice said. “If I’m going to burn political capital and get people on my side for this, I have to have validation that this is right for me.”