The Value of Win/Loss Reviews, Part 1
Jan 23 2018
Nothing hits as hard as losing a committed, quarter-end deal. Whether the deal slid out to the next quarter, a competitor “bought” the business, or there truly was a sales execution issue, it hurts the same. We’ve all been there, because these kind of losses happen a lot.
According to our 2017 World Class Sales Practices Study, the loss rate of forecasted deals is more than 50%!
These Loss/No Decision numbers have been relatively consistent over the last five years, but they have been trending up slightly: They’re getting worse instead of better. Why? These two data points tell the story:
Study participants said that the rate of change in customer expectations surpassed any other business challenge. Nearly 75% of our respondents said that this rate of change was increasing noticeably or significantly, followed closely by Competitive Activities at almost 71%.
After all of our effort and focus on aligning ourselves with the buyer’s journey, the journey changes. For us as for our competition, successful selling now depends on staying in step with continuously evolving buyer expectations. Sellers need dynamic selling processes that allow them to quickly react and adapt.
It is critical that the sales operations and sales enablement teams help their organizations uncover new patterns in buyer behavior or competitor tactics on a regular and consistent basis. Win/Loss Reviews are an indispensable tool for this. Yet, only 48.1% of companies are conducting reviews on a regular basis.
And below that truth is the reality that only 4% of our respondents strongly agreed that their Win/Loss Reviews were “consistently and effectively conducted.”
CSO Insights’ studies have shown consistently that organizations with formalized and structured processes out-perform their peers, and this particular challenge is no exception. There’s clearly a financial benefit to conducting them:
Seller Achieved Quota Rates increased by 17.6% when companies were more consistent in their use of Win/Loss Reviews. And Win Rates themselves increased by 14.2%.
The buyer’s journey will continue to evolve. But organizations with processes that enable and demand diligence, self-examination, flexibility and continuous adaptation consistently achieve better financial results across the board – year after year. Instituting a disciplined and consistent Win/Loss Review Program will provide sales teams with critical information that they can’t get anywhere else. Ultimately, it’s all about meeting and exceeding customer expectations.