Win/Loss Analysis is a powerful tool that can shed unique insights on the reasons why a company has sales success, or why it struggles to meet its goals. After looking back on 20+ years of Win/Loss experience, we have identified the top ten benefits that companies experience with effective Win/Loss programs. Win/Loss is one of the few tools that can objectively produce higher revenues and higher margins from existing products, while also directing new products. Check out our Top Ten Benefits of Win/Loss Analysis:
1. Greater communication between Sales and CI. A successful Win/Loss program creates a stronger link between the front line sales staff and the CI team. This opens up dialog that can enhance early warning of competitive threats. It also offers the CI team the chance to regularly interact with the sales team, at different levels, providing a wider range of perspectives on the competitive situation.
2. Frequent interaction between CI team and all other functions. Win/Loss is a platform for regular interaction between the CI team and other parts of the company, including product development, service, support, and design functions. These regular interactions create channels to share insights, and to promote the function and purpose of CI throughout the company.
3. Anticipated competitor actions. Tracking how competitors sell, what they sell, and how well it meets customer expectations provides a level of early warning that few other resources can match. A properly designed Win/Loss program identifies ways a competitor hints about new product features, functionality, or other factors. This provides an early warning of the competitor’s launch dates, and even a suggestion on its product development road map.
4. Deep understanding of buyer decision factors. Mixing quantitative and qualitative Win/Loss creates a clear picture of the potential strategic opportunities in the market. An effective Win/Loss program aggregates performance across many deals and allows the analyst to determine what decision factors are most critical to the buyer in different segments. Matching decision factor to buyer type allows fine-tuning of the sale, and potentially higher value offers in the segment.
5. Sales team battle cards. When Win/Loss is done with collaboration of the CI team, battle cards can be a useful way to link the CI and Sales teams. Drawing on Win/Loss findings of what decision factors are most important, and matching that to how competitors perform on those factors, allows the CI team to develop sales support that highlights messaging on where competitors are weakest.
6. Senior executive interaction. Company leadership loves to know why deals are won or lost. Regular reports on performance creates a key opportunity for the CI and Win/Loss team to interact with the company leadership. During these interactions, the CI and Win/Loss teams can present other market insights and recommend actions that will improve sales success.
7. Better predictability for sales forecasts. Over time, the Win/Loss process builds an accurate measure of sales performance. This can focus in on the average win rate, and if sufficient volumes are covered, win rate by various segments can be calculated and projected. This can produce more accurate sales forecasts and also help direct future sales efforts towards segments where win rates are higher.
8. Improved pricing and value proposition alignment. Win/Loss collects customer buying decision factor rankings which can be used to match value proposition and decision factors. This tighter alignment can allow for value-based pricing that is geared to match buyer triggers, and capture a higher price and generate higher sales success.
9. More effective product positioning and messaging. Determining buyer decision factors and ranking those factors in importance provides the seller with unique transaction-based insights into what is important to the buyer. This insight translates into more effective product positioning and messaging when it is developed to align with the buyers’ key decision factor rankings.
10. Higher close rates. Aligning the sales message, product features, and overall value proposition to the buyer’s decision factors produces higher performance against each factor. This in turn produces a comparative advantage in the selling process and makes the offer more attractive to the buyer. Done right, and with the proper assessment of the buyer decision factor importance, it produces higher close rates.
– Erik Glitman, CEO