- B2B sales teams spending too long researching prospects while B2B marketers struggling to understand target audience, according to new study by Dun & Bradstreet
- Only 38 out of the 229 new leads an average marketing campaign produces turn into realised revenue – a win rate of just 17%
- Nearly 6-in-10 (57%) marketers say their biggest challenge is understanding exactly who their target audience is
A new study launched today from Dun & Bradstreet shows how sales and marketing teams are struggling to reach the right audience and convert leads. As the age of cold calling ends and an era of data-led selling is being ushered in, the study found that still only 38 out of the 229 new leads an average marketing campaign produces turn into realised revenue – a win rate of just 17%.
The research surveyed sales & marketing teams and B2B buyers in the UK and North America, finding a clear sales disconnect – the average sales person spends over two hours (128 minutes) looking into each prospect before contacting them.
According to the salespeople surveyed, the average salesperson spends over two hours (128 minutes) looking into each prospect before contacting them, leaving sales teams with little time to actually reach out to new prospects and sell. Consequently, nearly a quarter (24%) of salespeople said they don’t have enough time to research potential customers and (35%) of sales people admitted they are under more pressure to provide value in a digitally-led business world beyond what buyers can ordinarily find online.
Marketers are also facing tough challenges of their own:
- Nearly 6-in-10 (57%) say the biggest challenge they face is understanding exactly who their target audience is
- 56% said that ensuring they have relevant and complete data remains a challenge
- 93% said that access to accurate and complete data to understand their audience is key to reaching them
There are many frustrations on the buyers’ side too, the study shows:
- 51% of buyers said they have seen an improvement in the sales and marketing communications in the last few years, despite the proliferation of tools and analytics designed to target effectively
- 29% of buyers also say that the biggest frustrations for them are callers that have failed to do basic research on the company
- 29% also state that they are being called “at the busiest times of the day”
Rishi Dave, CMO at Dun & Bradstreet, said: “As sales and marketing teams converge, it’s critical for them to have accurate and aligned data about their target audiences to help convert any lead into a paying customer more quickly. B2B buying is a longer process that is likely to begin before a salesperson is even involved. Sales acceleration principles will help sales and marketing teams surface actionable insights and connected buying signals, which help convert prospects into customers and increase ROI.”
With nearly half (48%) of all buyers stating the communications they receive are not relevant to their role – and 37% who believe that the communications are not timely – there is a need for companies to be accelerating their sales process by connecting its data with buying signals, and providing it with relevant context.
“If sales teams have more detailed buyer information at their disposal, they can spend more time on revenue-focused activities,” added Dave. “By using data-driven sales acceleration tools that incorporate real-time, accurate data with buying signals, marketing and sales teams will have access to more relevant information that’s connected, insightful and actionable.”
If you’d like to take a look at the report, please visit www.Dnb.co.uk/marketing/media/state-of-sales-acceleration.html.
Nvidia forecasts sales above estimates as gaming chip sales surge
By Chavi Mehta and Stephen Nellis
(Reuters) – Nvidia Corp forecast better-than-expected fiscal first-quarter revenue on Wednesday, expecting strong demand for its graphics chips used in gaming PCs and artificial intelligence chips for data centers.
As people wait for COVID-19 vaccine rollouts around the world, stay-at-home orders have helped sustain the demand for chips used in personal computers, gaming devices and data center infrastructure that enables remote working.
The Santa Clara, California-based company’s gaming chips have also regained popularity for mining cryptocurrency, a trend Nvidia is trying to counter by throttling its gaming chips ability to mine for currencies and instead offering specialty chips for mining.
While Nvidia was long known for its gaming graphic chips, its aggressive push into artificial intelligence chips that handle tasks such as speech and image recognition in data centers has helped it become the most valuable semiconductor maker by market capitalization.
It has eclipsed rivals Intel Corp and Advanced Micro Devices.
Shares were up 3% at $597.50 in extended trading after the results.
On a conference call with investors, Chief Financial Officer Colette Kress said that a global chip crunch made it hard to keep the company’s flagship gaming chips introduced last fall in stock and that the chips would likely remain in tight supply through the fiscal first quarter.
The company also said it will make a change to its gaming chips starting with the RTX-3060s to make them less efficient for mining cryptocurrency. The company said it will instead introduce mining-specific chips.
“We would like GeForce GPUs (graphics processing units) to end up with gamers,” Kress said.
Kress said analysts have estimated that cryptocurrency mining contributed between $100 million and $300 million to Nvidia’s sales in the fiscal fourth quarter. The company expects the new mining chips to generate about $50 million revenue in its fiscal first quarter, Kress added.
The company expects first-quarter revenue of $5.30 billion, plus or minus 2%, above analysts’ average estimate of $4.51 billion.
Revenue in the quarter ended on Jan. 31 rose to $5 billion from $3.11 billion a year earlier. Analysts on average were expecting $4.82 billion, according to IBES data from Refinitiv.
Revenue in the company’s gaming segment was $2.5 billion, above analyst estimates of $2.36 billion, according to data from FactSet. Data center revenue was $1.9 billion, above estimates of $1.84 billion according to FactSet data.
(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Maju Samuel and Will Dunham)
Running boom to help Puma recover after slow start
By Emma Thomasson
BERLIN (Reuters) – German sportswear company Puma expects the financial impact from coronavirus lockdowns to last well into the second quarter, but believes global growth in running should help to support a strong improvement after that.
“We clearly see a running boom in the whole world,” Chief Executive Bjorn Gulden told journalists, noting that yoga and other outdoor activities are also doing well. He expects the healthy living trend to continue even after the pandemic.
Gulden said his optimism is underlined by the fact that orders for 2021 are up almost 30% compared to a year ago, with bookings for running products particularly high.
However, there is still uncertainty about when lockdowns in Europe will end, with about half of the stores selling its products currently closed in its home region.
For the full year, Puma expects at least a moderate increase in sales in constant currency, with an upside potential, and a significant improvement for both its operating and net profit compared with 2020.
Shares in Puma were down 2.9% at 1100 GMT.
“The wording on outlook looks softer than we had anticipated, even by Puma’s cautious standards,” said Jefferies analyst James Grzinic.
Gulden noted that a shortage of shipping containers bringing products made in Asia would impact margins, with freight rates likely to double in the next 12 months.
Puma will put a stronger focus on the women’s market in future, Gulden said, creating shoes better modelled to female feet for running and soccer and capitalising on partnerships with celebrities like singer Dua Lipa and model Cara Delevingne.
Gulden admitted Puma had been slow in creating its own app, but it plans to launch one towards the end of the year, further supporting online sales, which grew by 63% in 2020.
Rival Nike in December raised its full-year sales forecast after demand for outdoor sportswear drove an 84% surge in online sales.
Gulden said he is hopeful that the Olympics will go ahead in Japan and the European soccer championship will also take place after both were postponed from 2020.
($1 = 0.8226 euros)
(Reporting by Emma Thomasson; Editing by Mark Potter and Keith Weir)
ExxonMobil to sell some UK, North Sea assets to HitecVision for over $1 billion
(Reuters) – Exxon Mobil Corp said on Wednesday it would sell its non-operating interest in its UK and North Sea exploration and production assets to private-equity fund HitecVision for more than $1 billion.
Exxon has been looking to sell its oil and gas assets since late 2019, seeking to free up cash to focus on a handful of mega-projects.
The deal includes ownership interests in 14 producing fields operated primarily by Shell as well as interests in the associated infrastructure. Exxon could also receive about $300 million in contingent payments based on a potential for increase in commodity prices.
Exxon’s share of production from these fields was about 38,000 barrels of oil equivalent per day in 2019, the company said.
Exxon said it would retain its non-operated share in upstream assets in the southern part of the North Sea as well as its interest in the Shell Esso gas and liquids (SEGAL) infrastructure, which supplies ethane to the company’s Fife ethylene plant.
HitecVision, in partnership with Eni, had bought Exxon’s Norwegian North Sea assets for $4.5 billion in 2019.
Initially, Exxon hoped to raise more than $2 billion from the sale, which was planned for late 2019. In June 2020 sources told Reuters that the portfolio was more likely to fetch $1 to $1.5 billion given the oil price weakness last year.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil D’Silva)
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