Gartner Spending Trends Demand that IT Sales and Marketing Must Challenge the “Do Nothing” Prospect to Achieve 2012 Success
In the first study, Gartner lowered their 2012 worldwide IT spending growth forecast by 1/3rd . The good news is that IT spending is still growing, at a rate of 2.5% this year. The bad news is that the growth rate is lower than the 3.7% predicted going into the New Year, and nowhere near the relative lofty 6.8% 2011 growth levels.
In the second study, Gartner released the results of their annual CEO and Senior Business Executive Survey, to measure sentiment from the C-suite on IT spending and strategy. The survey indicates that economic concerns remain high; with a whopping 8 of 10 CEOs believing their enterprises will be impacted by an economic downturn in 2012. As a result, the most are spending the same this year as last (44%) or are cutting spending from last years’ levels (14%).
But the news is not all bad, with CEOs:
- Twice as worried about the impact increased compliance regulations and more difficult financing are having on their business as they are about the economic chill, workforce challenges, or IT security risks.
- Still wanting to innovate via IT, with particular priority towards big data, cloud computing and mobility / tablets.
What does this mean for your IT sales and marketing?
I don't set trends. I just find out what they are and exploit them. – The late Dick Clark
The research points to a challenging environment for IT sales and marketing, as enterprises remain uncertain about the recovery, and in response, tighten the IT purse strings. Although there are a couple of bright spots, the majority of IT executives remain frugal, choosing to “do nothing” than invest in new upgrades or projects. The result is that opportunities never get going, or if they do, just stall out. Frugalnomics is in full effect.
The business impact of Frugalnomics is significant, with:
- Almost 60% of your sales opportunities not being lost to the competition, but instead lost to “no decision” (Sales Benchmark Index),
- Your average buyer’s decision cycle lengthening by 22% over the past 5 years (SiriusDecisions),
- 2/3rds of final decisions made based on price versus other significant purchase criteria, leading to a significant increase in discounting.
If you tally the impact of each, you find that the impact of Frugalnomics - the “do nothing buyer”, lengthening sales cycle and increased discounting - is costing you millions each month.
To address this significant opportunity you have to quickly evolve your sales and marketing to be more challenging and provocative - justifying to today’s IT executive “Why Change?”, “Why Now?” and “Why You?”
· Gartner lowers 2012 IT spending growth forecast by 1/3rd