6 Reasons Why You Have Low Sales Performance

Sales are the only way brands create revenue. The higher the number of your products or service that exchanges for the customer's money the greater revenue your business enjoys. 

Many founder start-ups struggle with low sales records and it puts their entire business at risk of extinction. Low sales performance undercuts the ability of start-ups to attract investors, grow and expand into new dimensions of the business vision. 

Many reasons contribute to a start-up's low sales performance and many of them surprisingly have nothing to do with the product services being offered. If you are a startup currently in bad sales shape, the following may be the  6 reasons why your sales performance is low. 

Insufficient Budget

Sales is a business function and like any other function, it requires budget allocation. Without an adequate budget, activities that translate into higher sales success will be hampered. For instance, it may require money to move a product from your business or product's location to where customers will see it. Money may also be needed for the movement of the sales team. When the money required to make such a crucial move is unavailable, sales success becomes impossible. 

Unclear  goal

What is the ultimate aim of your sales? Why is it important you meet your sales target? When these two reasons are unclear to you or your sales personnel it will most likely affect the attitude toward sales. When there is no clarity of purpose, the motivation to overcome sales objections and the hunger to commit more to the sales process will be lacking. A strong work ethic is fueled by passion and passion is strongest when the goal is super clear. Passion is the foundation for all transformational sales accomplishments. 

Weak product knowledge

Effective selling involves accurately conveying the product's values to a prospective customer in a way that makes him see your brand as the best choice. The values of a product include the product features and how it benefits the customer. It is also about communicating how the products compare to others and why it's the best choice for the prospect. All these require an in-depth knowledge of the product on the part of the salesman. It's hard to win people over when you are not sounding like an authority.  The logic behind a  product's effectiveness is what customers depend on to make rational buying decisions. If the seller is ignorant about his product, closing the sales will be more or less impossible.

Targeting the wrong customer

The right product chasing the wrong customer is another reason for low sales. People may fall into the same social or economic demography but their needs differ in many ways. So attempting to make yours the product that serves every customer will likely be an exercise in futility.  A product should have a laser focus on the specific customer it targets and the salesman should be super aware of the target customer, and how his product or services will effectively serve them.

Poor knowledge of customer needs

When the salesman or team is unsure of the customer's actual need he will most likely offer the right product in the wrong way to the right customer.  Uniformed sales personnel will most likely offer the right product to the wrong customer. So your job as a founder is to help every one of your salesmen to learn everything about your product or services he is selling and identify what specific needs or pain points are most critical to the customer and guide them to see how your product is designed to solve the problem and eliminate their concerns.

Bad Communication

A knowledgeable salesperson resonates with the right kind of feeling and curiosity in the mind of the prospective customer. They understand the state of mind of the customer and use that insight as leverage to deliver a unique selling proposition that will influence the buying decision of the prospect in their favor. The right message will close the sale while the Wrong words can cost you a high-paying customer.  Take time to curate a solution-centered high-impact message capable of closing sales.  

Lastly, please be reminded that every desirable outcome is the consequence of action in the right direction. Don't expect sales improvement without a corresponding and methodical action.