Win-Loss Analysis is a method of evaluating, comparing and contrasting the reasons for why a sale was won or lost. A similar approach that is popular is Lost-Sale Analysis.
In order to appreciate the importance of Win-Loss Analysis, we will look at the ‘Benefits of doing Win-Loss Analysis’ below.
Approaching the Goal as an Opportunity and not a Problem
Quite often, whether it is do with conversion % improvement or revenue improvement, Sales Directors focus on identifying the reasons for the lost sale. They want to know about the root causes for the problem. The reality of lost sales is that, there may not be a specific negative point for sale not happening. The advantage with Win-Loss Analysis is to look at the situation through the lens of not only lost sale but also sale won. What did we do right and how?
By studying both Won and Lost deals, we can draw comparisons that is very useful to identify winning approaches. It can also present deficiencies the sales process. When done across sales team members, we will get to know how to align specific customer & staff personas, how to develop peer-support models, etc.
Developing Unbiased and Result Oriented Culture
Action plans so prepared by studying both won and lost cases with Win-Loss Analysis lays the foundation for an unbiased and result oriented culture among sales staff. As team members are able to appreciate the differences between Won and Lost deals, they recognize that this exercise isn’t about witch hunting. Everyone in the sales team would have some success and some failures. Thus Win-Loss Analysis, when done systematically and regularly can become a powerful coaching tool.
Won Customers are Emotionally Connected to Brand
One of the biggest advantages or benefits of applying Win-Loss Analysis instead of doing Lost-Sales Analysis is that, Won customers are emotionally connected to your brand as they recently made a purchase. They are more willing and forthcoming to share their feedback, opinions, likes, dislikes and choices with us. In simple words, we will get a good mind share from them. On the contrary, lost customers are most likely not to open up and share genuine reasons.