Despite strong revenue growth across SMBs, the economy poses challenges resulting in lowered company budgets and layoffs
Pipedrive, the global sales-first CRM and intelligent revenue platform for small businesses, announced the results of its annual State of Sales and Marketing report examining sales and revenue trends across businesses globally. Despite the challenges business owners faced in 2020, the majority of respondents (over 70 percent) saw an increase in their company’s revenue following the pandemic – in fact, 40 percent actually exceeded revenue forecasts this past year compared to 2020.
Despite the strong growth in revenue however, only 64 percent of sales professionals at these companies indicated they reached their personal annual sales targets in 2021, compared to just over half the year prior – when asked why, they indicated it was primarily due to lowered budgets (43 percent) and shrunken teams (43 percent). With the current economic climate, Pipedrive surveyed 1,114 sales and marketing professionals, business owners and people involved in the industry, working for startups, SMEs and large businesses.
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“Small businesses are the foundation of our global economy. In the U.S., they make up 99.9% of all businesses and account for the majority of jobs, according to the SBA. Economic uncertainty and volatility is bound to happen – what matters most is to set your business up for success by implementing the right infrastructure that will pay dividends long-term,” said Dominic Allon, CEO of Pipedrive. “Technology has the ability to help small business owners gain valuable insights so they can reduce costs and create operational efficiencies when needed. Not only can that go a long way in getting that competitive advantage in the market, but it can simultaneously alleviate internal pressures within organizations which is especially important when times are tough economically.”
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, technology and automation adoption, integration across sales and marketing, leadership’s role in the health and success of a small business, productivity in remote work, and much more.
Key findings that emerged:
Strong growth across the board
Despite the challenges they faced last year, 71% of respondents said their company grew more in 2021 than in 2020, while 73% said their company achieved or exceeded its revenue goals.
Tech adoption aids growth and employee satisfaction
Respondents who adopted technology and automated their sales and marketing tasks were 16% more likely to hit their sales targets. They were also 22% more likely to be satisfied with the tools made available to them.
Strong leadership is key to success
Nearly 40% of respondents who didn’t reach their sales target last year (and never or rarely hit their regular sales quota) believed that leadership and management in their company requires improvement.
Sales and marketing integration boosts revenue
Companies with well-integrated sales and marketing were 26% more likely to say their revenue exceeded forecasts. They were also more likely to have a clear understanding of their strategy, mission and goals.
Marketing investment yields results
Over three-quarters of respondents (78%) reported an average, good or very good return on their marketing investment in 2021. Meanwhile, companies that spent more on marketing saw more revenue growth.
Remote work contributes to better productivity
Two-thirds of respondents said that remote working has had a positive impact on their working life, while half (46%) said that it has made them more productive, compared to 12% who said they were less productive.
Methodology
The Pipedrive Annual State of Sales and Marketing Report 2021-2022 surveyed 1,114 sales and marketing professionals, business owners and people involved in the industry globally. The sample includes people working for startups, SMEs and large businesses. The survey was conducted in December 2021.
