72% of UK tech and services firms struggled to hit Q1 sales targets
Hi guys
As promised, today we’re launching Growth Blockers UK: Q1 – What is stopping top-line growth in tech & professional services?
So the headline executive summary for you:
- 72% of CXOs said their companies were not hitting targets in Q1
- The majority cite slow buyer decisions and tough economic conditions as the reason
- While most said they listen and engage well enough with clients, they separately said better marketing and sales performance would unlock growth
- Most companies experienced a tougher Q1 than Q4 23
- 28% of companies are still hitting targets and 19% had a better quarter than Q4 23
- Anecdotally, many CXOs said they need to up their game on value selling – ie being more creative, collaborative and consultative with clients
- Many also commented they expect their own suppliers to do the same for them, providing additional levels of value
Have a look at the press release which is going out today.
If you helped, thank you
Dan
Almost three-quarters of UK tech and professional services companies struggled to hit sales targets in Q1
- Economic conditions are tough for tech and professional services leaders to hit goals
- Growth Blockers UK Survey finds buyers have slowed their decisions
- Companies need a better understanding of customers and more tailored approaches to unlock growth, CXOs say
London [23/4/24]: Tech firms struggled to hit sales targets in Q1 as large enterprise customers were delaying buying decisions, research has found.
A study from growth research firm Tollejo – Growth Blockers UK Q1 – surveyed 103 CXOs and entrepreneurs in technology and professional services companies that serve large enterprise firms. The study found 72 percent of respondents were not hitting sales targets at the end of Q1, with most of them citing slow decisions from buyers as the barrier to their growth.
“There are extreme pressures on revenue leaders as larger firms have put the breaks on so many projects,” said Dan Ilett, CEO and founder of Tollejo. “It’s clear that companies had a tough quarter and the one before didn’t look much better for most, yet some companies are still hitting targets. So if you’re doing well right now, you’re doing really well”.
“The CXOs surveyed signaled even they are looking for more collaboration and creativity from their suppliers so it follows that their clients would as well. Companies hitting targets are being creative and attentive to customers. They’re listening hard and recognise that post-Covid, marketing, communications and buyer requirements have changed again.”
Some 28% of firms surveyed are still hitting targets, the study found. And while 48% of CXOs said Q1 was either harder than the previous quarter, 19% of firms said it was easier.
CXOs cited slow buyer decisions (46%), economic conditions (26%) and a lack of access to funds (14%) as their biggest barriers to top-line growth.
To enable better growth, 38% of CXOs said they would like to see ‘better economic conditions’, followed by ‘a better understanding of what customers want’ (22%) and ‘better sales and marketing performance’ (18%). In other words, better listening and communication.
The research was carried out with The Executive Summary, Tollejo’s weekly newsletter for global tech CXOs and high-growth entrepreneurs.
If you’d like a copy of the report, you can download it here.
ENDS
Media contact: Acacia Henry: acacia@tollejo.com
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About Tollejo
Tollejo is a B2B growth research company that gives businesses the insight to achieve their full potential. We combine advanced analytics, industry knowledge and buyer behaviours to craft strategies that drive significant growth and brand development. Founded by a team of experts in marketing, data analysis, and business strategy, Tollejo is an invaluable partner for companies looking to lead markets. Our services range from market research to brand positioning and growth strategy formulation.
For more information about Tollejo and how we can help your business grow, visit our website at www.tollejo.com
About The Executive Summary
The Executive Summary is a newsletter for global CXOs and entrepreneurs in tech and high-growth companies. It is partnered with growth research company, Tollejo. It covers cutting-edge innovation, imminent challenges and essential insight across the business and tech agenda. It is written by a team of business and tech experts, ex-journalists and business leaders with a mission to challenge leaders and build a community that embraces new insights and connections.
