4. Evaluate performance per segment
The goal at this stage is to determine what has changed so you can uncover the threats and opportunities for the business. You can easily do that by overlaying the market segments that your company is targeting with the amount of net new business that it has attracted in each segment.
If there’s a degradation in performance while all other elements of your sales funnel remain unchanged, then you’re probably facing a saturated or contracting marketplace. In this case, you can proceed to benchmark the demand for your solution. You can examine search volumes in each target vertical and see if there is a correlation between relative search volume year-over-year and the drop in your sales.
For example: Sales of your software in the life sciences category are going down by 5% year-over-year and search volume for the category of tools your company provides within this marketplace is lowering by 30% year-over-year. The product hasn’t changed, the sales team hasn’t changed and the price model hasn’t changed. All of your data points to a consolidating marketplace. It’s only a matter of time before companies that offer this type of software start going out of business or merging with other companies and the cost to acquire a customer goes through the roof.
So, if life sciences is a dying market, your next logical move would be to find out whether there is potential for growth in the other two segments—e-commerce and higher education. And, if you spot any opportunities, you can bring up a discussion in terms of how to fuel more leads and hopefully make your marketing dollars drive more sales within these two marketplaces.