HEAD OR TAILS? TURNING LOSS INTO GAIN

Why did we lose this account? Why did we win this account?
It's like looking at two different sides of the same coin. It doesn't matter what end you happen to be gazing at, you're still holding a coin that has monetary value.
But right now, that coin isn't adding up to the right amount. In two separate Miller Heiman bi-weekly polls, we've found a disconnect in how sales professionals are viewing their customer's purchasing behavior:

Miller Heiman Polls Question Majority Response
Poll 1 Why we lost Price 54%
Poll 2 Why we won Relationship 40%

More than half of sales professionals polled believe they lost because of a customer's issue with the price. On the other hand, they're also convinced that when they win, it's because customers appreciate the established relationship. The answer to the two questions should be the same. If a sales professional lost because of price, they should also have won because of price. If they are reporting they won because of the relationship, it stands to reason that the relationships in other accounts were not cultivated well enough to warrant a win.
"Were it true that everyone bought based on the lowest price, no organization would need a sales force," said Bob Miller, founder of Miller Heiman. Furthermore, the results of the 2008 Miller Heiman Sales Best Practices Study indicated that only 26 percent of respondents indicated they get feedback from customers on their proposals. This statistic reflects an opportunity for many organizations to look at the hard facts of why they're winning and why they're losing.
Whatever side of the coin you gaze at, the truth is: you've got money in your hand! And the one way to reap the value is by performing win/loss reviews on your sales force's accounts.
You may not relish the idea of reconnecting with individuals who decided not to close a sale with you. However, by remaining disciplined and asking the tough questions you need to ask, you can glean important information with which to construct a list of dos or don'ts for future sales. Performing win/loss reviews call attention to the details of a lost sale that led to its failure. They also shed light to the sales practices that helped secure wins. By collecting this information, you can begin to understand what best practices to leverage within the sales force, and avoid those actions that turn customers away.
Win/loss reviews are a cost-effective way to fuel sales practices when times are tough. But the key to coaxing the most return from a deal review is turning your findings into action. Much like holding a coin in your pocket, it isn't good for much until you spend it. Simply having the knowledge is not enough to make it valuable, you must convert it to something that performs for you.
You've got your coin, now put it to good use!