Why Firms Are Investing in Sales 2.0 During the Downturn

During these tough economic times, companies are still spending big on Sales 2.0 technology, according to CRM uber-guru Barton Goldenberg, speaking at the November 2008 Sales 2.0 conference in San Francisco.

Corporate executives apparently believe that, when it becomes more difficult to find customers, the number one priority is making sales activities more productive. Since Sales 2.0 helps sales teams to differentiate between those customers who are likely to buy and those who are not, investment in such tools is growing, rather than shrinking, as the economy contracts. "This is the time to know your customers," Goldenberg explains. "You can’t make the right decisions about where to put your resources if you don’t know who’s worth going after."

Even though the economic downturn is generating an uptick in Sales 2.0 sales, Goldenberg believes that, for many companies, investing in Sales 2.0 is a long-term strategic move. "As time goes on, a greater number of sales professionals and corporate buyers will be from the so-called ‘millennial generation’ who from birth have only known digital technology," he says. "These are buyers and sellers who are always on the Internet and want to interact with each other wherever they want, and whenever they want."

Goldenberg believes that such individuals will demand the greater levels of collaboration between buyer and seller that are inherent in the Sales 2.0 environment. "The technology helps them to be better informed, better connected, more communicative, and more in control of their business activities," he explains.

Bio: Barton Goldenberg is the world’s leading consultant and analyst on CRM technology. He is President of ISM, Inc., a firm founded in 1985 that focuses on CRM research, market analysis, and consulting, and publishes ISMGuide.com, a leading CRM-oriented Website.