Key Trends in Revenue Growth for 2025
The business landscape has faced volatility and shifting buyer expectations since 2022, leading to economic pressures for even the most talented teams. However, as we enter a new year, data suggests that revenue organizations focused on customer obsession (putting the customer at the center of every aspect of a company) and technology-driven innovation are poised for sustainable growth.
Revenue Rebound: Revenue growth has rebounded to an average of 19% across organizations, a significant increase from 11% in 2023. Small and mid-sized organizations are experiencing the most notable growth.
Accelerated Sales Velocity: A productivity metric that identifies how quickly an organization can generate revenue within a given time. Revenue teams are leveraging automation and insights to optimize sales processes. This has led to an increase in rep capacity, average deal size, and win rate.
Sales velocity is calculated as: (Number of Opportunities) x (Average Deal Size) x (Win Rate) / (Sales Cycle Length).
A Gong Labs study reveals that the average number of opportunities per rep increased by 13% from 2023 to 2024. Additionally, average deal size increased by 6% in the same period, despite pricing pressures.
Existing Customers as Growth Levers: Upselling and cross-selling to existing customers is a top priority for 2025. This comes after 73% of organizations failed to meet renewal targets in 2023.
Customer-Centricity Challenges: Only 27% of revenue leaders express strong confidence in their teams' understanding of customer needs. This stems from rapidly changing markets and insufficient access to reliable data and insights.
Limitations of CRM: CRM systems, while crucial, are failing to provide a comprehensive understanding of customers. They lack essential features like automation and actionability, leading to concerns about their ROI.
The Rise of AI in Revenue: 48% of revenue teams are already utilizing AI, with another 24% planning to integrate it into their workflows in 2025. 85% of revenue professionals are already experimenting with AI applications.
Preparing for AI: Successful AI implementation requires the right skills, processes, and data strategy. Organizations are placing increasing emphasis on proficiency with AI and automation tools as a top skill for sellers.
The Importance of Data Strategy: The success of AI hinges on high-quality, organized data. Organizations capturing customer interactions and leveraging AI with this data experienced 54% higher growth than those relying solely on CRM data.
Shift Towards Revenue Efficiency: Organizations are moving away from "growth-at-all-costs" to prioritize sustainable growth. AI plays a crucial role by improving automation and insights, driving revenue efficiency.
In conclusion, revenue organizations that embrace customer-centricity, invest in AI, and prioritize data-driven strategies are likely to outperform their peers in 2025. By leveraging AI to optimize sales processes, understand customer needs, and improve efficiency, these organizations can achieve sustainable revenue growth in today's dynamic market.
NOTE: This data is based on GONG’s State of Revenue Growth 2025 report. GONG is a Sandler strategic partner. The full report can be accessed here.