Q1 Softness Unveils Sales Atrophy
Where can leaders take action to eliminate sales atrophy challenges?
The life sciences and analytical instruments industry is no stranger to change. The events over the past few years have left an indelible mark. The pandemic spurred unprecedented demand, leading to exponential growth across vendors. As the world grappled with the virus, field sales teams were forced to adapt to new ways of selling, relying on video conferencing and other digital tools to communicate with customers. However, as we move into 2023, the decline in spending in Q1 and further openness of labs’ desire for in-person interaction has unveiled a new challenge―sales atrophy. In this article, we’ll explore the challenges facing vendors as they navigate an increasingly competitive landscape, and the strategies teams should consider enabling for their sellers to succeed in the face of uncertainty.
Recent voice-of-customer research (VOC) suggests labs are back open. Buyers are hungry for in-person interaction. Buyers will continue to maintain flexible work schedules, remaining heads down while in the lab while doing administrative work at home. This leaves highly competitive and short periods for vendors to make an impression and out-position competitors. Buyers expect the following:
These preferred interactions and expectations require sales teams to execute agile sales motions. And as labs open, sellers should note that buyers have previously indicated that field reps have failed to meet their needs during in-person interactions. Their dissatisfactions have centered on limited understanding of the account, lack of in-depth knowledge of product portfolio and an inability to communicate their competitive advantage.
Now pair this with recent client research and sales leadership voice-of-field (VOF) feedback. Sales time benchmarking studies suggest sales reps are spending 2.5 days per week on non-sales related activities like customer service, order tracking or resolution and customer complaints. Sales leaders are suggesting reps have become reactive order takers and are too comfortable selling via video conferencing. This combination of VOC and VOF are presenting a significant challenge in the wake of tighter customer budgets in 2023 indicating that field sales teams are experiencing sales atrophy.
Where can leaders take action to eliminate these challenges? Based on VOC and VOF feedback, the following recommendations can reposition field sales teams and provide opportunity to win in the current battle for market share:
In summary, customers are beginning to see more vendors in-person. Field sales teams are finding it difficult to work neglected sales muscles. This brings an opportunistic time for sales organizations to “get back to the basics.” Sales leaders must establish the right expectations now to reap the rewards as customers and budgets eventually fully open back up.
For more information on how Alexander Group can assist your sales organization’s performance, please contact a Life Sciences practice lead.
