The great B2B sales benchmark: 2023, a fascinating year for Sales!

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Sales Benchmarks in 2023: Are You Meeting the Average?

The average KPIs of the sales function come from a survey by HubSpot, conducted among 1,477 sales professionals worldwide (including France). Here are some benchmarks to evaluate your sales performance in 2023: 

• The average conversion rate (sales) is around 21% ;
• The average closing rate revolves around 29% ;
• The median amount of a sale is $4,000 (with 47% of all transactions falling between $1,000 and $5,000) ;
• 91% of sales professionals practice upselling, and upselling tactics contributed to 21% of company revenue in 2023 ;
• 87% of sales professionals practice cross-selling, with cross-selling tactics also contributing to 21% of revenue ;
• Consequently, 42% of the revenue for the majority of companies was generated from existing client portfolios through cross-selling or upselling efforts.

Now let’s move on to the trends that emerged or consolidated in 2023.

The B2B super-buyer is becoming even more independent with AI

Even before the advent of AI, we witnessed the emergence of a more autonomous, well-informed, and demanding super-buyer, driven by several macroenvironmental factors:

• The rapid digitization of the purchasing journey during and after the pandemic period;
• The arrival of millennials and Generation Z in procurement roles (75% of decisions are made by these generations according to a PYMNTS study);
• These buyers, now accustomed to online shopping in their daily B2C experiences, expect the same standards in B2B (intuitiveness, ease, speed, and even entertainment);
• The uncertain economic climate pushes them to be even more vigilant, as they have even less room for error than in the past.

AI only enhances the capabilities of the super-buyer, making them more informed and confident than ever before. Gartner predicted three years ago that B2B sales roles must shift from “promoters” to “sense-makers.”

According to HubSpot, salespeople should position themselves as “consultants” to regain their role in the buyer’s journey. A consultant helps buyers prioritize collected information, derive relevant insights, confront realities with case studies provided by the salesperson, make comparisons, anticipate ROI, and more.

“Salespeople must now prioritize building strong relationships, enhancing buyer trust, understanding their specific needs and challenges, and leveraging AI to deliver highly personalized experiences,” stated in the HubSpot study.

In summary, AI should benefit both parties to finally align the B2B buying experience with expected standards, whether it’s in terms of relationship quality, conversation productivity, or shortening the sales or purchasing cycle, depending on the perspective.

The year 2023 has been challenging for sales professionals… but they have (over)performed!

This is, in any case, what emerges from the 2023 edition of Sales Trends Report. Indeed, 54% of sales professionals report that selling was more difficult in 2023 than in 2022.

Some challenges exacerbated by COVID-19 are still very present three years later: 

• Inflation tops the list of challenges faced by sales professionals in achieving their goals in 2023 (25%);
• Supply chain issues follow closely (21%);
• Competition ranks third (19%) ;
• Lack of high-quality leads is noted by 17% ;
• Accessibility of decision-makers and prolonged sales cycles (an average of 5 decision-makers) are both mentioned at 16%;
• Alignment issues with marketing round out the list at 15%.

Asked about the quality of leads provided by marketing, 41% of sales professionals express dissatisfaction. However, amidst these challenges, there are positive outcomes.

Despite these difficulties, 56% of sales professionals exceeded their sales targets in 2023, and 29% met the goals set by top management. AI played a significant role in this achievement: two-thirds of surveyed sales professionals state that AI helped them better understand their target audience in 2023. Several applications of AI seem to have become indispensable in their daily work:

• Better understanding of the prospect’s industry sectors to refine the pitch;
• Self-training on sales and persuasion techniques;
• Refining the wording of the pitch and strengthening storytelling;
• Analyzing and interpreting data on the fly, etc.

Even better: AI has found its place in sales efforts for the existing client portfolio. Indeed, sales professionals state that AI will enable them to improve the effectiveness of upselling (86%), cross-selling (86%), and down-selling (92%) in 2024.

Finally, AI allows sales professionals to reclaim two hours per day, previously spent on manual or repetitive tasks.

The Profile of the Sales Professional Who Stood Out in 2023

What behaviors, skills, and tactics distinguished the sales champions of 2023? HubSpot shares its findings:

• They are 35% more likely to have emphasized Sales-Marketing alignment for at least three years;
• They are 19% more inclined to analyze their data to optimize the sales process;
• They are 17% more likely to consider CRM as “very important” in the sales process;
• They work in companies where Sales and Marketing departments are “strongly aligned” (+14%);
• They are 12% more likely to use social media in their sales approach;
• They work in companies with a Sales Enablement team (+12%).

* A practice that involves convincing a customer who has declined to purchase a product to opt for a cheaper alternative.