Most people think of the US as being a business El Dorado, a place where ideas and dreams turn into leading global companies, and where people starting out with nothing make their fortunes. Without getting into an elaborated geopolitical, macro-economic debate, I’m here to tell you why doing business in Europe is just as interesting as targeting the US market.
The dollar-euro ratio has never been closer
Since the euro came out in 2000 at 1€ to 1$, the euro-dollar exchange rate has never been closer. That means that if you’re a US company, you have a higher purchasing power than you’ve had in years. If you’re a European company, imports are more expensive which is pushing consumers to “buy local.” Investing in Europe is a good bet since Europe’s economy is generally improving, and economists predict that it will continue to grow this year and next.
Europeans may take longer to purchase but when they do, they spend more
It’s true that Americans are pretty quick to give something a chance, and go through with purchases faster than their European counterparts who take more time to think things over. However, when Europeans do hit the GO button, they generally invest higher amounts. That means that you may need to nurture European companies a bit longer, but when they’re ready, they will have been worth the wait.
Employment growth is good for business
Unemployment in some European countries is at the lowest level it’s been in nearly 10 years. Employment rates are on the rise, which means that businesses are generating revenue and reinjecting that back into their companies. With such a healthy business climate, it’s no wonder that European companies are ready to invest in technology to help boost growth even further.
European innovation is on the rise
Start-ups, software editors and independent software vendors are popping up all over Europe like hot cakes. With a rise in support for business creation, the availability of business angels and venture capital, more and more entrepreneurs are finding it easier to get their ideas to market in Europe than ever before. Many are looking for OEM partnership possibilities so now’s the time to target them.
Marketing outreach works
Whereas direct outbound marketing tactics are hard to convert into sales in the States, most European-based companies are open to telesales initiatives and are willing to engage in high-level discussions when approached in the right way. As described in my previous blog post Why Telemarketing Still Works, with the right techniques, direct peer-to-peer outreach can have a significant impact on your sales pipeline.