Win/Loss Analysis: A Powerful Tool to Drive Strategic Growth
Why did we lose?
It’s the first question you ask when business goes to a competitor. So… Are you really focused on improving your business, or do you simply move on and try again with the same sales approach and techniques?
Conducting win/loss analysis is one of the best ways of generating the insights you need to increase revenue and grow your business. So why aren’t you doing it?
Win/Loss Analysis (WLA) is a cost-effective, insightful, and ethical method for gathering and analyzing information about your market, customers, and competitors. WLA identifies your customer’s perceptions of specific sales situations and how you compare to your competitors. It provides a window as to why a customer is buying or not buying your products and/or services. The analysis provides information about the performance of both your firm and your competitors. The insights can then be actively used to focus sales staff more effectively in the marketplace and also to inform research and development of products.
The Benefits of WLA:
- Understand why you win and lose business
- Learn which clients are or are not good prospect
- Focus on product features customers value most
- Improve implementation, training and services
- Improve quality of customer testimonials
- Improve sales professionalism
TOP 7 QUESTIONS TO GET YOU STARTED
Answering these questions is the foundation to get the process moving in a fruitful direction.
1. What were the reasons we won/lost the last sales competition for… (a big client)?
2. Was our RFP response as effective as it could have been?
3. Are our prices truly non-competitive with our rivals? Or are other factors impacting client retention decisions?
4. How/ why can a rival keep beating us on bids for regional clients?
5. Are there opportunities to gain clients that we are not capitalizing on?
6. What operational changes do we need to make to better satisfy existing clients?
7. What changes can we make that will best empower our sales force in their daily efforts to win customers out in the field?
I have been involved with WLA since the mid 1990’s and have written about the subject since 2006. To this day, I do not understand why more companies aren’t conducting win/loss interviews, analyzing results and implementing lessons learned.
When WLA is done properly, companies gain valuable insights and are able to implement initiatives that helps them increase revenue and grow their business. It really is a win-win all around.