Sales teams struggle to hit quotas
For all sales teams, headwinds were felt across the buyer journey. Both new and experienced sales professionals had to adapt their selling practices to counter emerging challenges brought about by the pandemic and the new economic climate.
Toughest Challenges Across the Buyer Journey Funnel
- Gaining access to the right stakeholder
- Creating a targeted prospecting strategy
- Driving consensus among stakeholders
- Protecting prices and maintaining profitability
- Negotiating over text or email
- Expanding footprint into current customers
- Finding means to add relevant value
- Managing constantly changing priorities
- Dealing with uncertainty due to the pandemic
30% of companies lowered 2022 target, nearly 100% lowered 2023 target
Facing the economic downturn at the end of 2022, approximately 30% of sales teams lowered their quotas as a precautionary measure. With companies missing their current targets, most have responded by adjusting down future guidance.
Sales Quota Adjustments (average value)
Average company lowered revenue target by 20%
To keep in line with the decline in revenue, companies reduced their revenue guidance by 20% to meet targets in 2022.
However, given the current worsening economic climate, expect companies to continue looking for ways to reduce burn to meet future revenue goals.
Target (comparison 2021 with 2022)
Average company only hit 75% of 2022 target
As tech companies only hit 75% of their revenue targets, they had to make up for the 25% shortfall in their budget. Hence, tech companies responded by reducing their sales team by an average of 25% to balance their budget.
Non-tech companies performed better than tech companies, who often achieved over 90% of their revenue targets.
Median quota attainment at the end of 2022