Financial chiefs may be worried about inflation and a host of other issues as 2023 rolls on, but numerous surveys show they’re not afraid to spend in certain areas to grow their businesses.
In fact, nearly three-quarters of CFOs plan to spend more on sales functions this year, with about half budgeting for 10% or higher increases, according to a Gartner survey.
CFOs aren’t just bullish about sales for the near term either: Gartner predicts “sales enablement budgets will increase by 50% by 2027 as a way to address shifting buyer preferences, boost seller effectiveness and drive revenue growth.” (Sales enablement, in a nutshell, means training sales reps to better sell.)
Caveat: CEOs need to understand the value of sales enablement
Increasing revenue and satisfying buyers’ changing needs may be the driving factors in sales enablement and enlargement, as Gartner surmises.
We’d add that execs’ desire to grow sales shows:
- CFOs aren’t as pessimistic about the economy as many analysts are, and
- they know the only way to keep pace with inflation is to outsell the competition.
Customers may not like having to pay more. But they’ll accept price increases for what they value the most. A savvy, well-trained sales force is critical to find and keep those customers. White papers, social media, and digital and print marketing help attract prospects, but they don’t make the sale.
Gartner notes companies’ sales enablement efforts can fail due to the wrong metrics. Decision makers need to see a clear bottom-line benefit to shelling out more for training and hiring salespeople.
CFOs in charge of sales or their sales managers will need to demonstrate:
- the connection between revenue goals and enablement activities. For example: what are the “seller behaviors needed to hit their most important sales goals” that are reinforced in training and ongoing education.
- a cost-effective program can be maintained that teaches coaching, training and communication tools to hone sales techniques, and
- a positive financial impact from changing seller behaviors. That involves showing a rise in profitability as a result of how salespeople do their jobs as compared to the baseline.
One other factor to consider: If three-quarters of CFOs are investing in sales now, there’s a risk in standing pat.
