Despite optimistic claims of growth from respondents, year-on-year growth has actually reduced
New York, July 6, 2023 – Pipedrive, the easy and effective sales CRM for small businesses, today announced the results of its annual State of Sales and Marketing: The Economy Review 2022/23, examining sales and revenue trends across businesses, globally. The study has yielded interesting results, revealing two seemingly contradictory data points from the same group: despite the majority (63%) of respondents claiming that the companies they work for grew more last year, the percentage of year-on-year growth has decreased from 71% in 2021. Smaller companies were especially affected, with a clear correlation between company size and employee success.
Size matters: the study reveals that company size plays a pivotal role in employee and company performance. Small businesses face an uphill battle, with employees 14% less likely to hit their sales goals and a 10% lower chance of company revenue growth compared to larger firms. Large corporations hold an advantage, boasting an eight per cent higher likelihood of consistently smashing sales targets. Yet, there's a hidden danger in times of economic hardship. Employees in companies that cut budgets and downsized teams face even greater hurdles, with success rates plummeting by up to 27%.
"Small businesses are the backbone of our global economy, driving the majority of job creation, and fueling economic growth. The data shows that to thrive in times of uncertainty, it's crucial to lay a strong foundation for success,” said Dominic Allon, CEO of Pipedrive. “By implementing a robust technology infrastructure, small businesses can unlock invaluable insights, streamline operations, and trim overall costs. This grants a competitive edge and relieves internal pressures such as manual processes, inefficient workflows, and increases overall productivity. In challenging economic times, technology becomes the lifeline that enables businesses to weather storms and emerge stronger than ever."
Among the survey findings, the data points to key areas small businesses can invest in when there are any signs of economic volatility. For example, the study found that companies that prioritize technology investments saw an 18% increase in business expectation for business growth in 2023. Businesses that neglected technology were twice as likely to worry about individual workloads, at over 40%.
Optimism prevails as investments drive progress
A resounding 80% of sales and marketing professionals remain optimistic about the future. Encouragingly, businesses as a whole demonstrate a positive trajectory, with a greater proportion increasing investments in 2022 compared to previous years. The commitment to growth and development serves as a promising sign amid uncertain economic conditions.
Budget cuts and workforce reductions leave their mark
Concerns about personal and organizational futures are heightened for employees in companies that implemented budget cuts or downsized their teams. Intriguingly, reduced spending on employee benefits also correlated with increased worries. The impact of financial decisions on employee morale and long-term prospects becomes evident.
Power of support in the workplace
In the realm of professional support, 47% of respondents draw strength primarily from their own positive mindset. However, CEOs and founders derive encouragement from believing in their company's vision. Crucially, a strong correlation surfaces between support from managers and colleagues, optimism, and achieving targets. Businesses fostering a culture of colleague support are poised to reap remarkable benefits, with respondents supported by managers boasting 18% higher optimism and enhanced sales performance by 9-11%.
Resilience and the power of technology
Despite challenges, individuals maintain a resilient outlook. Notably, those whose companies invested in technology display 18% higher hopes for company growth and reduced apprehensions about mounting workloads. Technology emerges as a key enabler of progress and resilience in a changing business landscape.
The state of sales and marketing: The economy review 2022/23 surveyed 983 sales and marketing professionals, business owners, and sales professionals. The sample includes people working for startups, SMEs and large businesses. The survey was conducted in February 2023.
To learn more about The state of sales and marketing: The economy review 2022/23, please download the full report here.
Founded in 2010, Pipedrive is the easy and effective sales CRM that drives small business growth. Today, Pipedrive is used by revenue teams at more than 100,000 companies worldwide. Pipedrive is headquartered in New York and has offices across Europe and the US. The company is backed by majority holder Vista Equity Partners, and Bessemer Venture Partners, Insight Partners, Atomico, and DTCP. Learn more at www.pipedrive.com.