Outsell Q1/Q2 Sales Benchmark
The results are in, our members had a good discussion with resident expert Christine Rogers about what they’re experiencing on the sales front and actions they’re taking. With a good cross-section of companies based on size and type (data, content-enabled SaaS, marketing) our quarterly sales benchmark continues to be a good bellwether. It also feeds into our reading of the tea leaves.
Key results:
Q1 2025 Performance
• 16% of respondents are above plan, 48% at plan, and 36% below — a slight decline from 13%, 46%, and 41% last quarter
• 56% cite sluggish decision-making, consistent with Q4 2024
• 48% face challenges generating new business, an improvement from 58% last quarter
• 32% report declining sales team effectiveness, up from 26%
• 32% report lengthening sales cycles, up from 17%
• 24% report softening renewal rates, down from 32%
• 25% of revenue comes from new sources, consistent with the previous quarter
Q2 2025 Outlook
• 44% of respondents are 90%+ confident about meeting Q2 targets, 72 % are at 80%+ confidence, but 28% remain skeptical (Some members pointed out that if they lowered targets this could be a false indicator.)
• 68% report lack of customers making decisions and uncertainty a growing challenge compared to 42% previous quarter
• 52% lack new business to replace lost renewals, a growing concern compared to 45% in previous quarter
• 76% are focusing on cross-sell/up-sell, an increase from 52% in previous quarter
• 15% expect further tariffs and trade disruption ahead
Anecdotally, we continue to hear concern about Q2 and Q3 potentially worsening if Q1 in 2025 behaves the same as 2023 and 2024 when initial optimism gave way to further belt-tightening. I am not a doomsayer; simply the energy is not entirely positive out there given turmoil in market.
What actions are being taken? In Christine’s wise words:
- Inspect what you expect — take pipe reviews down to a granular level and understand where the urgency is in each deal. No urgency, no deal.
- Drive for more cross-sell/up-sell opportunities.
- Pilot new revenue streams through small scale launches. (In Outsell’s opinion, bring along client-funded R&D; clients will invest if they have urgent need and get benefits by being ‘in’ early. They don’t want to stick their neck out, but they will work with you if they trust you. Ask.)
- Keep proposals low-risk and ROI focused.
- Measure marketing effectiveness. (MGB’s anyone!?)
- Create scripts that prompt for key-objections and listen in on calls.
A lot of reps buzz the tower and fly-by massive opportunities and whiff on essential questions and opportunities that fall out of the answers. Remember, in sales, curiosity doesn’t kill the cat!
Happy Selling.
Need to improve in this arena? Give us a call. Christine and her team offer amazing services and are an Outsell preferred partner.