Economists estimate the overall size of a nation’s economy by combining the value of all transactions that take place within a given period of time. The resulting figure is known as Gross Domestic Product. The frequency at which transactions take place is a measurement of money’s velocity. When GDP and velocity are relatively high, an economy is considered to be healthy and growing.
These macro level theoretical concepts can be interesting facts, but you may be wondering what possible use this technical information is to an individual. As a sales expert, you have probably noticed that transactions just aren’t happening at the same pace as they used to. It has become more difficult to convert potential leads into actual sales. The job itself hasn’t changed, but the way consumers approach their purchasing decisions certainly has. The sales cycle has gotten longer. You are experiencing a decrease in economic velocity, and it is having an impact on your bottom line.
In the past, your customers had to rely heavily on the information they received from you when deciding to pull the trigger on a deal. With easy access to competing data, your customers now have other authoritative sources to consider. Many spend time shopping around online to verify your claims before they buy, and the vast array of competing products simply paralyzes some with indecision.
You are not alone. Nearly every industry is facing this phenomenon to some degree. To get a better understanding of this emerging trend, check out the infographic below: