No Decision is More Costly Than you Might Think
No decisions are becoming more frequent, with 94% of buyers reporting a cancelled buying journey over the past few months, and 40% of all buyer journeys end in "No Decision".
No Decisions can be costly, for both the buying organization that wastes decision-maker review time and abandons the decision, and the vendor that expends precious selling resources.
For a planned buying effort–one that had been budgeted or was part of a strategic plan, no decisions tend to happen later in the buying process. The estimated costs:
- $70,000 – Buying Organization Costs
- $100,000 – Cost to Vendors ($25K each)
For an ad hoc buying effort–on that arises over the course of doing business, no decisions typically happen earlier in the buying effort. The estimated costs:
- $35,000 – Buying Organization Costs
- $60,000 – Cost to Vendors ($20K each)
Looking at 2020, for the vendors pursuing these No Decision opportunities, the accumulated costs ranged from roughly $690,000 to $1,800,000 in total impact to the business (with many of these being smaller solution provider organizations).