Challenge 1: Reduced prospect budgets

There was one issue that jumped out: 53% of respondents said they were worried about reduced budgets in customer/prospect companies, which could impact funding for the solutions that you sell. There are many objections that, difficult as they may be, you can overcome throughout the sales process, but a lack of budget can stop the process dead in its tracks.

Challenge 2: Impending recession

An impending recession is the in the number-two spot, cited by 36% of sales leaders. This is interesting because when we asked about their outlook on the 2023 economy in general, 62% believe that times will get tougher , but only 11% said we’re headed for a deep recession. So, if only one-tenth of respondents are that pessimistic about the economy, why do more than one-third think it could hurt their ability to meet their number? It likely comes down to what they believe that their prospects believe. If their target audience feels we’re in for a steep economic downturn, it will affect their purchasing behavior—they’ll defer investments and make do with existing solutions. While they may be able to take a “wait and see” approach, with the end of Q2 looming, sales leaders can’t afford to do the same.

Challenge 3: Lengthening sales cycles

In third place, at 32%, is lengthening sales cycles. Interestingly, when asked explicitly about the direction of sales cycles, 43% of respondents said they would be longer in 2023 than they were in 2022. Clearly, about one-quarter of those organizations don’t think that the longer process will hurt their ability to meet their revenue targets—perhaps there are other factors they believe are in play to mitigate the impact—but they are in the minority.

Challenge 4: Prospect layoffs

A little over one-quarter of respondents (27%) are concerned about widespread layoffs in prospect companies. Not only do layoffs come with other belt-tightening measures (see the number-one challenge above) but big personnel changes require rapid shifts in the priorities of the employees left behind. Even if your champion is still there—and even if they still have sufficient budget for your solution—they may need to focus their attention elsewhere, stalling any progress you’ve made within that account.

Challenge 5: Compounding challenges

When presented with all of these potential impediments to meeting their revenue targets, only one-third of respondents selected just one challenge. Almost half (48%) selected three or more—which means more problems to solve and more things to keep you up at night. But many of these are interrelated, for example concerns about an impending recession can drive budget cuts and layoffs. But it also means that you can adopt strategies to overcome multiple hurdles at once.

Speaking of strategies to overcome these hurdles. . .

Account intelligence is always valuable to ensure that your sales reps are as efficient and productive as possible—and it’s more critical now than ever. But you need to go beyond typical “insights.” Target lists segmented by standard firmographic details are going to look pretty much the same today as they did when business was booming. What you need is up-to-date intelligence about who does and does not have budget, a prioritized need, and a motivated advocate. With our Opportunity Identification service, BAO profiles your target audience so you can pinpoint your best prospects—and you can do it fast, in just days.

What’s Keeping B2B Tech Sales Leaders up at Night?