This post is part of The Crisis of Disconnection, a thought leadership series examining the latest research and highlighting how businesses can fuel their growth Target even in the midst of unprecedented changes in the way we work.
If there’s a topline takeaway research that prompted us to call crisis of disconnection From the name, it is. Development challenges you faced in the last decade Will not done Be the development challenges you face in the next decade.
If you’re following along, we’re glad you’re back. If you’re joining us now, we’re glad you’re here.
To recap, here are four things the wisest leaders we know got up at night:
- Businesses that were once in hyper-growth mode are now struggling to grow. one in three professions Already citing “slowing growth” as a top challenge going forward.
- Painfully high outlays and rising costs Leading businesses to reevaluate their software spending, the tools in their technology stack, and how it affects their bottom line
- Tried methods of generating demand are becoming less reliable and more expensive. Nearly two-thirds of businesses agree that sales engagement is struggling more now than it was pre-pandemic.
- 81% of businesses agree that COVID-19 has fundamentally changed the way we live, work and connect – and the “new normal” is still largely TBD.
You have seen the data. You’re tracking trends. But how will the crisis of disconnection manifest Yours Business?
Disconnection in context: Challenges for go-to-market teams
Here’s a closer look at three overlapping disconnects with a material impact on scaling companies:
What’s not pictured, and adding a sense of urgency to it? Macroeconomic volatility that appears to be here to stay. Fluctuating supply and demand, rumors about an impending recession, and lack of access to capital are prompting leaders across industries and functions to re-evaluate how to invest in growth.
Let’s consider each basic complication – and its consequences.
1. Disconnected data and systems reduce efficiency and value to your business
If having a streamlined tech stack with clean, connected data sounds like a growing priority, then you might be re-examining your CRM solutions (for good reason).
one in four professions Today says that as they grow, disconnected data and systems are among their major concerns. And the always popular point solution approach is not without problems.
Consider the impact on your people
effect 1: Proliferation tools are creating complex, bloated technology stacks that are becoming progressively difficult to use, integrate, and maintain.
- Sales reps use just 62% of their tech stack.
- Sales reps spend 41% of their average workday not sellingCost companies about 38% of revenue per quarter.
- 74% of CRM buyers feel their teams have to switch between too many devices to get work done, and 76% are using 3 or more apps to manage their relationships with customers
- Only 27% of marketers say their marketing data is fully integrated with the tools they use, and 22% of them find it difficult to share data across teams.
- marketers spend on average 3.55 hours each week Collect, organize and analyze marketing data from a variety of sources.
- Psychologists have found that switching gears and switching to different devices can eat as much as 40% of an employee’s productive time.
- A lack of unified data can block progress for individual contributors and lead to all-day reporting for managers.
- Providing tangible ROI for both individual contributors and team leads is difficult.
Effect 2: Disconnected systems lead to decentralized data, which causes teams to spend more time finding answers and less time to focus on high-value activities.
Effect 3: Frequent context changes at each level lead to loss of productivity.
Consider the impact on your bottom line
According to our research, companies with less connected data and systems are severely disappointed with the ROI of their tech stacks:
but Why? Does the connection and integration of your tech stack make that much of a difference in ROI? To answer that question, let’s look at how ROI is calculated:
As you can see in the above equation, total cost of ownership is one of the major factors in ROI – as TCO increases, ROI decreases, Fast,
And, as we’ve learned in our research, having more point solutions yields significant results. high cost of ownershipMainly driven by increased personnel costs associated with using multiple tools.
Therefore, even if a business is getting the same benefits from its tech stack, using too many point solutions is likely to decrease their ROI compared to a company that consolidated more of its devices onto a single platform. Is.
As you can see, streamlining your tech stack does more than just reduce friction between your systems and data. This lowers your total cost of ownership. This increases your chances of weathering the ups and downs ahead 52% business With excellent data connectivity reporting they feel well equipped to grow and flourish irrespective of the current state of the economy. And it connects your sales, marketing, and service teams (the importance of which we’ll talk about below).
2. Disconnected people lead to a lack of community and satisfaction
As you may have guessed, disconnected systems don’t just lead to disconnected data – they also contribute to feelings of disconnection between teams.
At the risk of stating the obvious: The way many of us did a 180 in 2020. no less than 80% US workers say the crisis has materially affected their daily work lives. within a year, zoom just generated $4 billion in revenue (53% year-on-year growth), with an increase in meeting attendees 2900%, Many of us had to learn – and are still learning – how to collaborate digitally rather than face-to-face.
There are also some challenges (access to more diverse talent, time saved on commuting, attending meetings in pajama pants).
what does this mean? The playbook for attracting, supporting and retaining employees is – you guessed it – changing.
Employees clearly crave connection and are more likely to feel disenfranchised without it. Is it equally true? Creating moments of connection is more challenging in an increasingly remote world that runs on siled systems and partially accessible information. And as the great resignation is already showing, the consequences of ignoring how employees feel inside and outside of work will not be insignificant.
3. Disconnected customers lead to decreased engagement and delight
If you’re getting the impression that these disconnection challenges are complicated, you’re not wrong. Disconnected systems, data and people are all contributing to another problem – brands are facing more barriers when trying to connect with their customer base.
Before we double-click on the data and what it means to you, here’s a high-level summary (with spoiler: what worked then may not work now):
If you don’t want to take our word for it:
- Customer Acquisition Cost (CAC) is up. 49% Those tracking CAC say it has increased in the last one year.
- 42% business cite rising costs to reach potential customers/customers as the main barrier between them and continued growth.
- Organic growth is slowing down. Average SaaS Blog Evolved -1.6% Last year and google takes more than 65% of clicks.
- over 30 Marketers say they are experiencing average-to-none returns on their digital marketing investments.
- 80% Marketers report that getting rid of cookies will have little to no impact on their advertising strategy, and just 36% Marketers overall feel fully prepared for the impending data privacy changes.
- businesses have already spent the average $1.3 million Further spending is expected on compliance with the General Data Protection Regulation (GDPR) $1.8 million More.
What does this mean for your business? It’s getting harder (read: less effective and more expensive) to reach potential customers. and if/when you Doing To reach them, it’s becoming increasingly difficult to exceed their expectations (with less information about their personal preferences than ever before). Without a single source of truth about customers, it’s hard for teams to deliver personalized, connected customer experiences. Although 80% marketers While personalization is considered the key to increasing revenue and enhancing the customer experience, research from HubSpot shows that more than half of marketers are missing critical data on their target audiences that prevents them from providing a personalized experience.
So where does this leave today’s go-to-market teams?
So far, we’ve covered “what” And “so what” is linked to the crisis of disconnection.
In the final installment of this series, we’ll cover the most important questions of all. now what?
Stay tuned for our next post, and in the meantime, learn how HubSpot can help you connect all the dots.