Reasons for declining sales

Reasons for declining sales

What are the reasons for declining sales? A decrease in sales occurs in companies and they do not know what are the reasons for the sudden decrease in sales. Sales decrease because of the emergence of new competitors, because of pricing, because of customer service, or because of the recession in the economy, and many other reasons, which we will mention in detail in today’s article. We will explain the reasons for the decrease. Sales and methods of processing them.

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Reasons for declining sales

We will mention in the following lines what are the reasons for the decline in sales:

A new competitor has appeared on the market

It is necessary to follow developments in your market, especially regarding the emergence of new competitors. If someone appears who is directly competing with you, it will definitely negatively affect your sales and will attract part of your market share which is one of the reasons for declining sales.

So analyze the position of this new competitor, and how he was able to attract customers. What is the difference between what you offer and what you offer in terms of quality and prices, analyze every detail of your business, and then determine your strategy to respond to it.

Whether it's offering discounts to re-engage your customers who have switched over from a competitor, or finding a way to differentiate yourself through the product itself, price, display offers, service model, etc.

Your store has become traditional

Consumers are always attracted to Commercial Business With a new look. Which you will find following the latest trends and inspired by the general atmosphere of the store, whether on the ground or online. In addition to taking advantage of holidays and events to add renewed touches to the business activity.

Provide customer service that does not serve customers!

Reasons why sales drop unexpectedly The customer service function is one of the functions that greatly affects the sales of businesses, as they are slow to respond to customers. Not paying attention to the details of their inquiries. Negative interaction with complaints. Repel customers with inflexible responses. All of these are reasons that can significantly reduce your sales, in addition to, of course, damaging your business reputation.

Therefore, do your best to shadow, train and provide your customer service professionals with all the information they need to reduce yourself to making marketing efforts to attract the customer. Then the unqualified customer service employee wastes it!

The marketing team is in one valley and the sales team is in another

In many cases, the reasons for the decline in sales are due to poor negative communication between marketing and sales officials, which causes dissonance in the goals that each of them works to achieve. For example, a marketing team may spend a huge amount of money on advertising efforts to promote a particular product due to its high demand in the market, according to their study of the market.

While the sales team believes that this product, no matter how high the demand for it, achieves a weak profit margin compared to the cost of these advertising efforts. Another high-profit product should be announced simultaneously with the promotion of the other product to achieve a balance in advertising expenses and revenues.

Read also: How to design attractive marketing advertisements?

They no longer care about customer needs and developments

Understanding your customers and being aware of their needs is essential to the stability of your sales. Taking into account that these needs and tendencies change in short periods of time. So always try to update your ideas about what your customers need, and understand their buying behavior. Always ask them what they think. Are they satisfied with the product or service in its current form or not? Are they looking for additional features and benefits? And activate Sales promotion Well.

You need to review your prices

Price undoubtedly has a major impact on the reasons for declining sales. A higher price can increase profit in the short term. While a decrease in price can also lead to an increase in profit, but in the long term. It attracts more customers and helps the company gain market share.

Price may also be specific to the brand's location and quality on some products. Changing the price on a “price sensitive” product can be reason enough to reduce sales. Therefore, measuring the price elasticity of a product is important, as it will help you determine how demand is affected by any change in price.

You made a change to your usual marketing activities

You may have spent little time and effort marketing yourself during this period, and this is a major reason for the decline in sales. But sometimes you may be interested in marketing and have a team performing these tasks for you, but sales are down!

In this case, your team has often decided to try a new marketing strategy. Both in terms of marketing channels. The platforms he uses, or the quality of the written or visual content.

If so, ask them to go back to the strategy you used to get back to your stable sales level. In addition, let them try other things and methods, but without abandoning the old strategy.

You're not good at dealing with your actual customers or angry customers

Old and old customers are valuable currency! You should do your best to strengthen your relationship with them. Give them offers, discount cards, or anything that makes them feel really special.

On the other hand, be careful not to let the customer who has dealt with you feel angry towards you. One unhappy customer can damage your entire company. Especially with social media. One post from a customer who had a bad experience with your product will undoubtedly hurt you and prevent thousands and sometimes millions from doing business with you. Therefore, some companies allocate time from their work on social media to perform the listening function, which is an attempt to find out everything customers say about the company!


Responding quickly to a drop in sales, even if it is a small percentage, saves you a lot of subsequent losses. Therefore, analyze all of these previous points and study which of them affected your business, and start dealing with them immediately. Thus, we have provided complete coverage of the causes of declining sales and ways to address them.

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