It’s unsurprising that travel and entertainment are trending below other industries, but it’s worrisome that three industries that appeared to be less structurally impacted are seeing declines. It’s not yet clear whether the downturn in manufacturing and consumer goods is a sign of broader economic weakness, changes in buyer behavior, longer-tail slowdowns due to production environments impacted by the pandemic, or something else. We’ll be watching these industries over the next few weeks to get a clearer picture of performance.
On the other hand, construction’s new deal creation increased for the fourth week in a row and is 38% above pre-COVID levels; human resources also grew. Currently, all industries with the exception of construction are trending below pre-COVID averages.
Closed-won deals saw a significant drop week-over-week, declining by 17% and sitting at 27% below pre-COVID averages globally. This trend held in all regions and industries. Various holidays (Memorial Day, the end of Ramadan, and bank/public holidays) may have contributed to this decline, but the next few weeks of data will reveal whether this turndown is a trend or anomaly. Typically the volume of closed-won deals accelerates as we approach the end of the month, so we’re curious what next week’s data will reveal — will we see an end-of-month increase in sales activity, or is there a broader slowdown occurring?
Call prospecting volume decreased by 4% the week of May 18, consistent across all company sizes and regions. In the same time period, the number of meetings booked saw a small dip of 1.7%. Combined with the decline in new deal creation last week, another indication of future revenue, these declines are worrisome for sales leaders.
Sales email response rates remained flat week-over-week. All company sizes are trending below their pre-COVID response rates, but companies with 26-200 employees saw a 9% week-over-week increase in response rates. Across regions, APAC and NORTHAM saw slight week-over-week increases in response rates, while EMEA and LATAM saw declines.
Immediately following the shift to remote work after the pandemic declaration, we saw a sharp decline in call prospecting and pivot to email as sales teams adapted to their new working environment and businesses grappled with immediate instability. Email prospecting has averaged 50-60% above pre-COVID levels for the last two months, while call prospecting is down 17% compared to pre-COVID averages.
Sales teams are booking more meetings overall — total volume is 18% above pre-COVID benchmarks. However, those meetings have not converted to business at a corresponding level, suggesting that beyond the cashflow issues impacting deal volume, there’s still significant misalignment at multiple steps of the outreach and qualification process. Over time, sales teams will need to return their pre-COVID outreach strategy — calling more and emailing less — to ensure outreach is actually effective.
With a 3% week-over-week increase, marketing email send volume has reached a historic high — 34% above pre-COVID benchmarks. All industries with the exception of travel are emailing above pre-COVID levels; even the travel industry sent 36% more email week-over-week.
Buyers continue to seek out and engage with businesses at record levels:
Ad spend is trending below pre-COVID levels for the 12th consecutive week, and globally declined another 4% week-over-week after increases during the weeks of May 4 and May 11. Consumer goods is the only industry that is spending more on advertising compared to pre-COVID levels, and also the only industry that increased ad spend week-over-week. Leaders in other industries would be wise to assess whether a more affordable online advertising marketplace could benefit their businesses right now.
While buyer engagement reaches all-time highs, sales results have not come close to seeing a corresponding increase, suggesting that salespeople are reaching out to poor-fit prospects. This month has seen improvements in deal pipeline metrics compared to March and early April, an encouraging sign that more businesses are reentering buying processes — but it’s too early to tell how much of this growth will be sustained. For now, it’s a safe bet that your sales team should continue prioritizing high-interest, good-fit buyers rather than indiscriminately prospecting.
The significant dip in advertising spend tells us that many businesses have paused their ad campaigns either temporarily or indefinitely. There’s an opportunity for companies to enter a more affordable market. Whether or not this approach is right for your company entirely depends on your audience and offering, but if online ads work for your business, now may be a good time to un-pause campaigns.
The last few weeks have been a volatile time for both business owners and employees. The HubSpot Research team surveyed over 1,000 consumers on their company’s COVID-19 response, and found that 33% were likely or very likely to look for a new job in the next six months. Of that group, 77% rated work-life balance as “important” or “very important” in deciding what job to take. Burnout, already a concern pre-COVID for workers around the globe, will be even more important for employers to guard against as the pandemic progresses.
Originally published May 28, 2020 8:00:00 AM, updated May 28 2020