The Reason we lost the deal was we were too expensive
Michael Lang
By Michael Lang
What if through doing one thing I could help you increase your win/loss ratio and improve your revenue, margin and marketshare and reduce your cost of sales? Here it is.
Track the reasons you lost a sale and interrogate them.
When I say interrogate them, what I mean – interrogate the person in your organisation providing the reasons and if need be go ask the the lost deal.
We are hearing even more company leaders stating the reason they are loosing sales is because of price. I call BullSh*t. They are hearing it from their people and if you hear it enough you eventually believe it. And yet, if you interrogate - dig deeper, you may find the reason is not price.
Maybe your value proposition did not stack up
Maybe your sales people suck at understanding the depth and breadth of the client’s problems, just wanting to shove your solution down the prospects throat.
Maybe your company shouldn’t have been pitching to start with, not an ideal client, mismatch of value or ideals.
Here is was is happening.
Version 1: Sales person ask the prospect “why didn’t we win the deal, is it because of our price?” Boom. Prospect sensing an easy way out “why yes it was”
Version 2: Sales person ask the prospect “why didn’t we win the deal?”. Prospect replies “you were too expensive” Sales person says “OK”
Version 3: Sales person receives an email from the Prospect saying “on this occasion you have not been successful with your bid” Sales person does not reply.
Version 4: Sales person does not follow up the proposal/quote. Does not hear anything and so closes the deal in the CRM and says the reason was price – that’s their assumption anyway.
Which version are your sales people?
What should be happening.
A. Sales person ask the prospect “may I ask why we didn’t win the deal?” Prospect replies “you were too expensive” Sales person ask “besides price were there any other factors?”
B. Sales person receives an email from the Prospect saying “on this occasion you have not been successful with your bid” Sales person picks up the phone and ask “may I ask why we didn’t win the deal?” and then engages further.
C. Sales person does not follow up the proposal/quote. Sales leader kicks butt. Sales Process needs to be improved and CRM reflecting that process. Sales leader needs to coach and hold accountable.
If you believe A, B or C are not happening – contact me to discuss the possible tweaks that could make a huge difference.
After all - this one tweak could make a huge difference in your growth aspirations.