The problem with stagnant or slow-growing markets

a trap observed in the communication processes.

Companies have less and less influence on market growth, customer financial opportunities, purchase and selling prices,  while they are under constant pressure to increase sales turnover.


Many people think that if they bring in more potential customers – or leads – then, based on the law of large numbers, more deals will automatically be closed successfully. In theory, this may seem logical. But in practice, when conversion rates deteriorate (for example, due to poor sales performance, unfavorable price positioning or deterioration in service quality), companies often respond not by improving efficiency, but by trying to compensate for losses by collecting even more leads.

The problem often goes unnoticed and then becomes fatal.

They don't see that increasing the number of leads is not the only solution. In fact, if I increase the number of leads without improving sales efficiency, I will only accelerate the decline. We are involuntarily steering the system towards poor sales quality. If competitors are weak or less active, this may work temporarily: because according to the law of large numbers, they generate more leads, and we "kill" part of the existing customer demand.

The Trap of Stagnant or Slow-Growing Markets – and Why Real Sales Matters More Than Ever.

In a slowly stagnating  or slowly growing market where demand is growing by 1-3% per year, every commercial company strives for the same thing: they want to grow. The problem begins when many companies try to impose their own 10-20% growth expectations on a market that can only produce a fraction of that organically. However, this is not always possible – especially in a market that is limited in size or not growing in size. Moreover, excessive pressure can backfire: market players become overwhelmed and the sales system becomes distorted. 

This is actually a trap.

  • because the company learns to be comfortable not selling, but serving customers 

  • there is no active sales activity, but passive demand service.

  • the sales team is increasingly only concerned with easy  lead processing.

  • they forget the company's value (its own sales processes) 

  • the numbers improve, but the real sales capabilities slowly degrade.

  • The company loses its active sales culture while seemingly performing well.

The descent begins.

In the long run, this is a straight path to decline, the growth expectation can only be met temporarily, but then a rapid collapse may follow.

 

  • The market runs out: the existing customer base is exhausted, the number of new leads decreases.
  • Demotivated salespeople: no sense of success, only increasing pressure.
  • Psychological burdens, burnout: due to unrealistic expectations, the constant feeling of failure.
  • Disintegrating sales system: experienced salespeople quit, new ones do not receive real knowledge.

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If the market size decreases, there is no need to be afraid, right?

 

The size of the market does not always increase – in fact, in many sectors it tends to stagnate or decrease. However, this does not mean that a company should also decrease. The key lies in a change in perspective. When the "pie" – the market – becomes smaller, a larger slice must be cut from it. This is not a law proportional to the division of the market, i.e. the size of the slice of the pie. Not everyone will need or have the opportunity to have the same slice. Companies that adapt faster, are more effective in lead management and are active in the market can gain a larger share. This is called market realignment.

In such cases, it is not the size of the total market that matters, but rather:

  • who reacts faster to changes,
  • who manages opportunities more effectively,
  • who can actively maintain sales activity when others fall behind.
  • who can speed up decision-making processes,
  • build stable customers from existing leads,
  • maintain the motivation of leads


Lead management
virtual businessman - lead management

While the market shrinks

consciously operating companies can increase their own share. In times of crisis or decline, not everyone gets the same share. The WOIMS system helps with this. Because Companies that operate better prepared, faster and more organized sales processes can gain a larger market share than ever before. Lead management strategy, automation, and conscious sales management are the solution.

 

Virtual Businessman

adapt faster to market movements

manage incoming leads precisely and automatically

don't lose opportunities due to lack of capacity or attention.

work with measurable and continuously market-adaptable sales processes

 

operates quality sales processes at all times

strengthen your market position even when others fall behind

WOIMS marketing agency approaches sales processes with a modern approach.