Ask any organization what’s happening in the sales department on the last few days of the month and the entire last week of any fiscal quarter. You’ll probably get an uncomfortable laugh and a shake of the head.
The End-of-Quarter Sales Rush Costs Companies Money
An analysis shows the high cost of procrastination.
August 25, 2017
Summary.
Salespeople close three times as many deals at the end of the month as during the rest of the month — but lose 11 times as many. This is a vicious cycle. And companies know it. Yet they continue the practice, month after month and year after year, under increasing market pressures from Wall Street and investors, heightened competition, and fears for the future of the national and global economy. Breaking this pattern requires support from the highest levels of the organization, but the biggest transition will be, of course, within sales. Teams must be educated on the full impact of their end-of-the-period behaviors. Sales leaders will need to create action plans and compensation schemes that reward appropriate, long-term behavior.
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New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.