While there are many benefits that can come from implementing a formal and rigorous win/loss analysis program, four reasons top of the list. These reasons include boosting win rates, gathering in-depth competitive intelligence, valuable product development ideas, and creating effective sales training programs to improve sales performance.
BOOST WIN RATES
A win/loss analysis program is an effective way to boost your sales team’s win rates and increase your revenue. On average, a comprehensive win/loss program can help increase win rates by up to 50% and revenue by up to 30%. This is accomplished by conducting interviews with buyers to identify their decision criteria and measure how you compared to your closest competitors in these key areas. You can then use these key areas to more effectively differentiate your solution and diffuse trouble areas that your competitors are using against you. When we work with companies, we usually see a minimum of 10% increase in their win rate the first year.
COMPETITIVE INTELLIGENCE
A few years ago, I worked with a client to benchmark the amount of competitive intelligence that he was receiving from his sales team through their Salesforce CRM tool compared to the amount that we, as an independent service provider, uncovered through direct interviews with buyers. In the end, his analysis proved that their internal systems contained less than half (45%) of the data that we were able to collect. The importance of gathering data on your competitors to understand their strategy has never been greater. A win/loss analysis program will help identify key sales and solution strategies that your competitors are using, which in turn will allow you to develop effective counter-strategies.
PRODUCT DEVELOPMENT
Aligning your solution with the needs of your competitors is key to business growth. Product development ideas come from several sources including customer success teams, customer interviews, and idea portals. Win/loss analysis programs are a rich source of the solution features and functionality that buyers value for their organizations. Questions regarding the solution functionality should be a part of every win/loss analysis program. Our research shows that the solution influences roughly 44% of the buying decision. By far it is the largest single area of consideration in the selection process.
SALES TRAINING
Finally, your sales team can have a significant impact on the buyer’s decision. I recently conducted an interview with a buyer about a large EMR software purchase. In three of the four decision criteria, Vendor 1 received higher marks, however, Vendor 1 actually lost this deal. The learning from this interview was that the sales team made the difference that tipped the decision in their favor. While Vendor 2 was behind in three decision criteria, the sales team was able to demonstrate that their solution would still deliver what the buyer needed - thus solving the buyer’s need - but at a better price point. In addition, the sales team established a much stronger position of confidence and partnership. In our interview with the buyer, the buyer claimed that the sales team’s responsiveness and understanding of their needs allowed them to have confidence that Vendor 2’s solution would deliver all they needed and was the best fit for their organization.
SOLVE Research helps companies build a competitive advantage to drive revenue and boost sales performance. If you have any questions about setting up your win/loss analysis program, let us know. Contact SOLVE Research at 801-988-9816 or email erik@solvescores.com.