Economic update: What rising inflation means for your sales strategy

Inflation is no longer just an economic indicator—it’s a real challenge impacting businesses and their sales strategies across Africa. With rising costs of goods, services, and wages, CEOs, sales leaders, and business owners must rethink their approach to remain competitive.

According to the African Development Bank (AfDB), inflation across Africa is expected to remain high in 2025, averaging between 6% and 8% due to supply chain disruptions, currency fluctuations, and global economic uncertainty. Countries like Ghana and Nigeria experienced inflation rates of 23% and 34.4%, respectively in the last quarter of 2024.

But what does this mean for your sales strategy? Should you increase prices, absorb rising costs, or shift your sales focus? This article examines the primary sales challenges presented by inflation and offers seven strategies to safeguard profit margins, preserve customer trust, and foster revenue growth.

How inflation impacts sales and revenue

1. Higher Cost of Goods and Services Businesses must either absorb higher costs or pass them on to customers—both of which can hurt sales. McKinsey & Company (2024) found that 67% of B2B businesses in Africa struggle to balance price adjustments while maintaining strong customer relationships.

2. Reduced Customer Purchasing Power Customers and businesses are more cautious about spending, extending sales cycles and increasing negotiation pressure. A PwC South Africa (2024) survey reported that 72% of businesses are experiencing longer sales cycles due to inflation-driven budget constraints.

3. Increased Pressure on Sales Teams Sales reps are facing more pricing objections and delayed deals. Harvard Business Review (2024) found a 20% rise in pricing objections in inflationary environments.

4. Customer Retention Challenges: Clients are seeking cheaper alternatives. Deloitte Africa (2025) reported that customer retention rates decrease by 15% during periods of high inflation.

7 sales strategy adjustments to navigate inflation

1. Optimise Pricing Without Alienating Customers. Avoid blanket price hikes. Instead, implement tiered pricing models and price anchoring, where premium packages justify mid-tier increases. Businesses that adjust pricing strategically retain more customers while protecting margins.

2. Strengthen Value Proposition to Defend Pricing Sales teams must be trained to sell on value, not price. ROI calculators and client case studies help justify pricing. KPMG Nigeria (2024) found that businesses improving customer experience alongside price increases see 40% less churn.

3. Re-evaluate Customer Segmentation: Segment customers by spending capacity—Prioritise high-value clients for premium offerings. Forbes Africa (2024) found that segmentation by purchase behaviour helps protect profit margins.

4. Upsell and Cross-Sell Strategically Maximise the lifetime value of existing customers. Bundle services and train your team to spot upsell opportunities. Companies that bundle offerings often see increased revenue per customer despite inflation.

5. Shorten Sales Cycles to Improve Cash Flow. Offer time-sensitive incentives and streamline approvals using digital tools. Harvard Business Review (2024) reported a 12% revenue increase for businesses that shorten deal cycles by 20%.

6. Strengthen Customer Relationships for Retention: Implement surveys, executive check-ins, and loyalty rewards to enhance client engagement. Companies that do so report higher retention, even in inflationary markets.

7. Train Sales Teams to Handle Inflation-Driven Objections. Equip teams with objection-handling skills tailored to inflation. Gartner (2025) states that trained teams close 22% more deals than untrained ones.

Final thoughts: Stay agile, stay profitable

Inflation presents challenges, but also an opportunity to refine your sales strategy, strengthen pricing, and deepen customer trust.

The writer is a Sales Trainer, Coach, and Consultant, as well as the founder and chief sales partner at SalesRev (www.salesrevafrica.com).

Sales Transformation Insights aims to deliver actionable sales transformation strategies for business leaders, helping them boost revenue.   Kindly share your insights or questions at info@salesrevafrica.com