Zomato battles Revenue Crunch
The chaos in the food-tech sector seems to have breached the front
gates of the mighty Zomato empire. After firing
some 300 employees – 10% of its team –
Zomato seems to fighting a revenue crunch, as well. In a mail that Deepinder
Goyal, cofounder and CEO of Zomato, sent to all his employees, it was mentioned
that the company’s revenue
hasn’t kept up with the growth of its sales team.
He mentioned that the company’s sales
team has been constantly underperforming and not meeting its target. He is also deeply worried that the company, for the first time in five
years, might not be able to live up to its investors’ expectations and may fall
short of its promises. In this
mail, he asked all his employees to pull up their sleeves and do a “bloody good
job from now onwards”. “Sales is the #1
priority for the entire organisation right now,” averred Deepinder. Should a company’s revenue crunch only be the fault of its sales
team? A ship’s captain is the one who usually takes
the blame for the ship going astray, rather than blaming it all on his crew,
isn’t it? Zomato’s inability to bring in the revenue can be the result of
several factors, therefore, is it a wise move on Zomato’s part to blame it all
on the underperformance of its sales team? Blaming it all on them might only
further demotivate them.
According to Deepinder, the issue of the sales team revolves around
motivation and training. Therefore, in order to offer them the
“perspective and kick” required to do a good job, he tried to answer the some
of the concerns raised by the sales team. These concerns, however, depicts insecurity and serious lack of motivation in
the team – something that seems to be
triggered by the recent layoffs.
(http://inc42.com/buzz/zomato-battles-revenue-crunch-blames-sales-team/)
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