It’s Not Just You: Revenue and Sales Challenges Persist Across the Board

As an agency owner, I’ve often found myself in the crosshairs when a client’s revenue targets aren’t met. Whether it’s their marketing pipeline falling short or sales cycles dragging longer than expected, the finger often points at us, the “strategy drivers.” However, as the latest GTM Benchmark Report for H1 2024 highlights, these challenges are systemic and impact businesses of all sizes, even with the best strategies in place.

Navigating a Landscape of Persistent Challenges 

The GTM report underscores that nearly half of companies are struggling to hit revenue and pipeline targets despite slight improvements from 2023. Here are some of the key findings:

• Revenue Goals: 49% of companies missed their H1 2024 revenue goals. That’s an improvement from 56% in 2023, but it still means nearly half of the market is underperforming.
• Sales Cycles: While 54% of companies are still reporting longer sales cycles, that’s down from a staggering 81% peak 12 months ago.
• Marketing Pipeline: 54% of companies failed to hit their pipeline targets in H1 2024, with SMBs and mid-market firms feeling the brunt of the struggle.

Yes, enterprise companies showed some resilience—56% achieved or exceeded revenue targets, and only 43% reported lower-than-expected pipelines—but they aren’t immune either. So, what does this tell us? It’s not just marketing agencies or sales strategies falling short. Economic shifts and evolving buyer behaviors are reshaping the game for everyone.

The Blame Game in Revenue Attainment

Every time I hear, “Why aren’t we hitting our numbers?” my gut reaction is to defend our efforts. We’ve delivered the leads, built the pipeline, and adjusted strategies to match shifting market conditions. Yet, these systemic challenges remind me that success is a complex equation.

For instance:

• Small and mid-market businesses are grappling with resource constraints and tighter budgets. When 60% of mid-market companies fall below revenue goals, is it realistic to expect a marketing campaign to be the sole savior?
• Longer sales cycles plague all company sizes, with enterprise-level businesses facing the harshest delays (62% report prolonged cycles). This trend underscores the challenge of closing deals in an environment where decision-makers are increasingly cautious.

It’s not about deflecting responsibility—it’s about acknowledging the layers of complexity beyond any single variable.

Hard Truths About Sales Cycles

As agencies, we live in the trenches of revenue generation, witnessing firsthand how CFOs scrutinize every budget line item. The GTM report states that ROI and time-to-value have become critical to cutting through longer sales cycles. Yet, even the clearest ROI metrics sometimes fail to overcome buyer hesitation.

Prolonged sales cycles aren’t just frustrating—they’re disruptive. They stall momentum, throw off projections, and create a ripple effect across an organization. Agencies can only do so much when the internal mechanisms of a sales team aren’t aligned or when economic pressures lead to decision paralysis.

Pipeline Pressure and Its Domino Effect

Marketing pipeline performance remains another uphill battle. Despite the growing reliance on data-driven targeting, more than half of companies still miss their targets. This underlines a critical point: volume isn’t everything. Aligning campaigns with Total Relevant Market (TRM) and Ideal Customer Profiles (ICP) is the way forward. Yet, executing that shift takes time, investment, and organizational buy-in—all factors often outside an agency’s control.

Where Do We Go From Here?

So, what’s the solution when half the market is underperforming? For clients, it’s about understanding that success is a shared responsibility. For agencies, it’s about setting realistic expectations and continuing to innovate. Here are some strategies both sides can lean into:

1. Double Down on Quality Over Quantity
   A smaller, more focused pipeline built on high-quality TRM and ICP insights will outperform a broad spray-and-pray TAM approach. Efficiency, not just volume, should drive pipeline strategies.
2. Address Sales Hesitations Proactively
   Marketing and sales teams need to collaborate on messaging that highlights ROI and time-to-value. Overcome CFO objections by showcasing tangible outcomes and making the cost-benefit analysis a no-brainer.
3. Adopt a Holistic View of Revenue Success
   Marketing is just one piece of the puzzle. Operational alignment, sales execution, and economic conditions play equally critical roles. Revenue challenges require a team effort across all fronts.
4. Learn From the Enterprise Playbook
   Enterprise companies have proven more resilient in 2024, showing that scalable, data-driven strategies with built-in agility are key to navigating tough market conditions. Mid-market firms, in particular, can adapt these strategies within their resource constraints.

A Final Word

If you’re a client reading this, know that your agency isn’t just another vendor—we’re your partners in navigating a tough and unpredictable market. And if you’re an agency leader like me, keep fighting the good fight. The numbers may not always land where we want them to, but progress is still progress. The GTM report shows there’s room for improvement, yes, but also reason for optimism. Together, we’ll keep working hard until we figure it out. In the meantime, here are some ideas of what not to do…

Maren Hogan

Maren Hogan is CEO of Red Branch and general Bad@$$

Maren Hogan is a seasoned marketer and community builder in the HR and Recruiting industry. Maren started Red Branch Media and, before she hired all the smiling faces you see below, she ran it on her own. In marketing for over 15 years, she has deep experience in strategic campaigns and a long-term, results-based operational approach.