CEOS OVERCORRECTING FOR REDUCED DEMAND RISK UNDERFUNDING GROWTH OPPORTUNITIES FOR 2023
SBI Survey Uncovers Fiscal Year Planning For 2023 Trending Even More Conservative Than 2022
DALLAS, Dec. 15, 2022 /PRNewswire/ -- SBI, a Go-to-Market Growth Advisory, announced new research findings indicating that few CEOs are pushing their organizations to take bold new growth bets, which will undermine growth in 2023. Most corporations expect flat to negative demand in 2023 (67% of CEOs anticipate somewhat or significant negative impacts on their strategy from interest rate hikes), and more than three-quarters of leaders are actively taking steps to secure their business against anticipated economic headwinds.
"Corporate America is looking toward 2023 with apprehension. While their concern is warranted, there is a danger of taking too much of a conservative posture and sacrificing the forward momentum that can be best achieved through new growth bets," explained Nick Toman, President, SBI. "The majority of CEOs are taking proactive steps to cut expenses, but their conservative strategies will leave companies unable to quickly drive growth when the market turns around," he added.
Specific findings worth highlighting include the following:
- 29% foresee demand degradation in the remainder of FY2022 and into FY2023, with 36% expecting consistent demand. Only 35% see growth accelerating.
- 68% expect inflationary pressures and interest rates to negatively impact their business in FY2023.
- 87% are proactively taking steps to strengthen their organization financially or budgetarily to prepare for a recession in FY2023.
"By following data-driven recommendations for using financial resources more efficiently, businesses can avoid sacrificing growth. We call these 'no-regrets' actions because they are a prudent measure in any economic climate. In an up market, they are a good approach for running a leaner, more profitable operation, but in a recession they are the cost of survival," explains SBI CEO Mike Hoffman.
- It's too easy to overcorrect. Don't just cut expenses; reassign them for better use. Analyze data to find the most effective proven use for every dollar.
- Wait and see is not a strategy. Know precisely where your productivity potential lies. Get your Go-to-Market (GTM) data in order and have your operations teams prioritize market segments.
- Evolve positioning and campaign messaging to reflect customer sentiment. Shift from top-of-funnel to account-based marketing and narrow ICP (ideal customer profile) activation. Focus on driving qualified opportunities with higher win rates and shorter sales cycles.
- Get back to sales basics. Analyze revenue per employee and where people are focusing and spending their time. If a sales rep does not bring in enough revenue to cover their salary, drive growth and drop money to the bottom line, you must ask yourself how to increase productivity in sales training or methodology.
"The key take-away from our research is that taking a conservative posture is going to cost companies, and we will see a diminishment of growth and innovation due to expense reduction in 2023," said SBI CEO Mike Hoffman. "Companies that overcorrect will be left playing catch-up to reinvigorate growth when things turn around."
To learn more about how SBI is different and why that matters to their clients' growth, visit www.sbigrowth.com or follow @sbigrowth on Twitter and LinkedIn.
SBI is a Go-to-Market Growth Advisory, offering collaborative consulting, go-to-market benchmarks and data, and advisory services forged from serving as strategic implementers who have owned and operated marketing and sales at some of the world's most successful growth companies. We take clients from the right data and insights to actions for impact, quickly, to deliver measurable results in top-line growth. Working as an extension of clients' teams, SBI offers relatable, practical strategies that work right away and ongoing. Our work is based on an intimate understanding of the buyer-seller journey, which enables us to help clients actively apply relevant data, strategies, and tactics for significant outcomes. Visit www.sbigrowth.com to learn more.
Contacts:
Maureen Landers
[email protected]
917.886.4901
Machie Madden
[email protected]
917.868.2358
SOURCE SBIGrowth
Share this article