Companies Are Deploying AI – and Hiring – to Capture $Trillions in Lost Revenue

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jul 17, 2024--

Despite missing on 2023 revenue targets, seven out of ten revenue leaders today are optimistic about attaining higher revenue in 2024. However, Revenue Leak stands in the way, with organizations losing out on 26% of hard-earned revenue that is evaporating due to systemic breakdowns in the revenue process. To combat this, a majority are executing a dual strategy to achieve their goals: hiring more revenue professionals and investing in AI-powered revenue technologies.

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Clari’s inaugural 2024 Revenue Leak Report uncovers the causes and impact of Revenue Leak and aims to empower revenue teams with the insights they need to understand and mitigate it effectively to drive sustainable growth. (Graphic: Business Wire)

That’s according to a new Clari -commissioned survey of 420 revenue leaders – including CROs, frontline sales managers, and revenue operations teams – across the US and UK. Clari’s inaugural 2024 Revenue Leak Report uncovers the causes and impact of Revenue Leak and aims to empower revenue teams with the insights they need to understand and mitigate it effectively to drive sustainable growth.

Key Takeaways:

1. 61% of companies did not achieve their 2023 revenue targets. However, 72% remain optimistic about improving revenue attainment in 2024
2. RevOps leaders report a 26% loss in global revenue due to Revenue Leak
3. Two-thirds ( 64% ) have committed to growing their revenue teams in 2024. 61% are increasing their revenue technology budgets this year
4. A third ( 32% ) have already adopted AI in the revenue process to boost productivity and decision making. 67% are planning to do so within the next year
5. Faster time to revenue is cited by 58% of respondents as the top benefit of adopting AI, followed by improved decision making ( 56% ), and better assessment of market and competitive dynamics ( 50% )

Read the summary infographic here. Download the complete report here.

“Clari’s first annual survey of global revenue leaders paints a picture of a fast-growing profession in transition,” said Clari CEO Andy Byrne. “A new generation of CROs and RevOps leaders are turning to AI and purpose-built revenue technologies to help their growing teams identify and diagnose Revenue Leak and orchestrate consistent and repeatable Revenue Cadences. That’s how winning companies will be able to create, convert, and close more revenue.”

Below are more detailed findings from the research including insights into enterprise investment in both revenue technologies and teams, as well as into where Revenue Leak is occurring across the sales funnel.

Organizations investing in AI, purpose-built revenue platforms, and revenue pros

Nearly two-thirds of companies are increasing their revenue tech spend this year, underscoring the critical role of technology in driving business growth. At the same time, companies are also investing in people, indicating their inclination to leverage AI to empower revenue professionals to be vastly more productive and customer-centric.

• Two-thirds ( 64% ) are growing their revenue teams in 2024
• 61% are increasing their revenue technology budgets
• Faster time to revenue is cited by 58% of respondents as the top benefit of adopting AI, followed by improved decision making ( 56% ), and better assessment of market and competitive dynamics ( 50% )
• Top investment focus areas: 34% ranked Sales Forecasting as their top priority, followed by Sales Enablement ( 33% ), and Sales Engagement ( 30% )
• Nearly half ( 45% ) are deploying purpose-built revenue platforms

Revenue Leak is occurring across the entire revenue process

Revenue Leak is a silent killer across the entire sales funnel – from pipeline creation to opportunity conversion to closing deals. Common challenges include poor expansion pipeline tracking, inability to diagnose deal progression, uncertainty as to where pipeline is dropping off, and slipped deals. As a result, RevOps leaders report a 26% loss in global revenue due to Revenue Leak.

• When Creating Pipeline , revenue leaders cited poor or slow upsell/cross-sell pipeline tracking ( 56% ), missing or broken marketing-to-sales lead handoff ( 54% ), and ineffective pipeline generation ( 54% ) as key factors contributing to Revenue Leak
• When Converting Pipeline , respondents attributed Revenue Leak to the inability to diagnose deal progression ( 49% ), uncertainty as to where pipeline is dropping off ( 49% ), and buying teams not on the same page ( 48% )
• When Closing Pipeline , incorrect or hidden forecast and pipeline details ( 71% ), missed upsell/cross-sell opportunities ( 63% ), and slipped deals ( 60% ) are the top factors contributing to Revenue Leak

If not addressed, Revenue Leak has serious implications on future business strategies and plans, with respondents citing slow or declining growth ( 54% ), reduced budgets ( 54% ), and reduced headcount ( 49% ) as primary concerns.

Clari’s survey findings suggest a pivotal moment for revenue leaders to rethink their strategies to stop revenue leak and capture more revenue. Adopting AI-powered revenue technology can lead to substantial improvements in revenue attainment and operational efficiency. As organizations plan for future growth, investing in advanced, purpose-built platforms can provide them with a critical edge over competitors, particularly in sectors still reliant on outdated systems such as CRM and spreadsheets.

Research Methodology

The research was conducted in April 2024 by independent research firm Vanson Bourne on behalf of Clari. 420 revenue leaders in the US and UK were surveyed.

About Clari

Clari’s industry-leading, AI-powered Revenue Platform is purpose-built to help companies optimize the end-to-end revenue process. More than 1,500 organizations – including Okta, Adobe, Workday, Zoom, and Finastra – run revenue on Clari to improve win rates, prevent slipped deals, forecast with accuracy, and boost the productivity of all revenue-critical employees. Visit clari.com and follow us on LinkedIn.

View source version on businesswire.com:https://www.businesswire.com/news/home/20240717249331/en/

CONTACT: Media Contacts

Scott Behles

Clari

sbehles@clari.comScott Johnston

Big Valley Marketing for Clari EMEA

sjohnston@bigvalley.co

KEYWORD: EUROPE UNITED STATES UNITED KINGDOM NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BUSINESS APPS/APPLICATIONS TECHNOLOGY SOFTWARE ARTIFICIAL INTELLIGENCE

SOURCE: Clari

PUB: 07/17/2024 09:00 AM/DISC: 07/17/2024 09:00 AM

http://www.businesswire.com/news/home/20240717249331/en