Confidence spurs sales

Three-quarters of Australian businesses predicted they would achieve or exceed sales targets in the June quarter, according to a survey by sales consultancy firm Huthwaite Asia Pacific.

Rising consumer confidence is the main driver of improving sales expectations. In the March quarter, almost a third (32 per cent) of the 493 businesses surveyed said their greatest challenge was customers not buying because of the economic climate, and only 62 per cent were confident of meeting or exceeding sales targets. Three months later this figure had risen to 73 per cent, with only 19 per cent reporting the economic climate as the biggest challenge.

“We’re seeing a good level of confidence at the coalface, particularly among business-to-business sales teams,” the chief executive of Huthwaite, James Fennessy, says. “[They] are now being asked to make up revenue for the numbers that were missed last year.”

The medical/pharmaceutical sector was the most bullish of those surveyed, with 80 per cent predicting improved sales in the June quarter. Only half of the manufacturers surveyed forecast improved sales, compared with 73 per cent of the information and communications technology firms, and 72 per cent of those in advertising, media and entertainment.

The most bearish sector was logistics and transport, with 20 per cent of companies predicting decreasing sales. Nineteen per cent of advertising and media companies and 16 per cent of those in professional services were also expecting sales declines.

Customer focus on price and increased competition were nominated as challenges to sales in the quarter, along with the economic climate. With these in mind, respondents nominated the most valuable skills in a sales executive as understanding and developing customer needs (78 per cent) – far above negotiating terms (14 per cent) or even understanding the product offering (17 per cent).

Gina McColl

BRW

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