June 2009
© 2009 The Sales Management Association
Presented by
Michael Perla
Principal, The North Highland Company
Win/Loss Analysis
How To Implement a Program
To Improve Win Ratios
Summary
Win/loss analysis helps sales management improve win ratios, direct sales coaching efforts, and enhance competitive advantage. Properly implemented, win/loss analysis is a process-based discipline that involves contacting customers, sellers, and support resources after a particular sales opportunity has been dispositioned and determining what was done well, what could be done better, and what competitors did right or wrong.
This webinar will focus on three key areas:
1. Defining a win/loss analysis project;
2. Conducting a win/loss analysis project; and
3. Developing a strategy and action plan based on the project results.
© 2009 The Sales Management Association 2
Win/Loss Quotes
“Those who do not learn from
history are doomed to repeat it.” - George Santayana
“ We are what we repeatedly do.
Excellence, then, is not an act, but
a habit.” - Aristotle
© 2009 The Sales Management Association 3
© 2009 The Sales Management Association
Definitions
• A formal process that interrogates wins/losses to understand relevant
causes and potential go forward modifications
• Triangulation of Input from sales professionals, sales team members,
sales managers, and prospects or customers
• An analysis of current win/loss data, trends and market or industry
compares
• A process that reveals the vulnerabilities and opportunities associated
with your competitive sales strategies/tactics, your target markets, and
exposes the challenges in executing a winning sales campaign
What is Win/Loss Analysis?
4
© 2009 The Sales Management Association
Costs and Benefits
• An activity that is typical in almost every other competitive process and that provides some of the richest sources of actionable intelligence you can obtain from sales results
– Qualitative Benefits
• Identify behaviors of winning and poorly performing sellers
• Improve value propositions and competitive positioning
• Improve buying-sales process alignment
– Quantitative Benefits
• Increase win ratios ($ won / $ won + $ lost)
• Improve sales cycle velocity
• Increase competitive win-backs and wins
– Costs
• Resource time to conduct discovery and analyze results
• Potential 3rd party costs to conduct prospect/customer interviews
5
Why Conduct Win/Loss Analysis?
© 2009 The Sales Management Association
One Approach
1. Define the problem
– Reasons and impacts
2. Gather data
– Internal / External
3. Analyze the data
– Trends, patterns, gaps – stakeholders, competitors, geos, etc.
4. Develop a report and recommendations
– Actionable and accountable
5. Take action (and follow-up)
– What, who, when and follow-up / measurement plan
6
How Do You Conduct Win/Loss Analysis?
Win/Loss Analytical Process – Sources of Input
Client (W/L) InputMarketing, Ops, Mgmt.Sales Teams, Systems
Client FeedbackSales Team ReviewInternal Analytics
8
7
6
5
4
3
2
1
Due DateResourcesOwnerActionNo.
8
7
6
5
4
3
2
1
Due DateResourcesOwnerActionNo.
Product/Offering
People - Client relationship
People - Expertise and
knowledge
Service (after sale)
Price
IMS Expertise
60% 50% 40% 30% 20% 10% 0% 10% 20% 30% 40% 50% 60%
% of Responses for Win/Loss
Loss Won
Opportunity Name Type Contract Value (converted) Won Stage Age Product Name Total PriceTotal P rice
(converted)Business Line
Formulary Focus for
Diversified Products New Business 37500 1 In Hand 0
FORMULARY FOCUS DYNAMIC DATABA -
28980 37500 37500 Managed Care
Actavis PMA: Oxaliplatin
and Epirubicin New Business 4688.97 1 In Hand 0 PMA - Other 6000 4688.97 Launch & Brand Management
Fastrack - Symbicord New Business 1000 0 6b - Closed Lost 0 Fastrack 1000 1000 Sales Force Effectiveness
Philips P & MA New Business 125000 1 In Hand 32 PMA - Other 125000 125000 Launch & Brand Management
Call Quality Bonviva New Business 46149.82 0 6b - Closed Lost 8 SALES STRATEGY EVALUATION 35240 46149.82 Sales Force Effectiveness
LNT 139402 CO_DDDC Renewal 6061 1 In Hand 0
DISTRIBUCION DE DROGAS - COLOMBIA-
CO_DDDC 6061 6061 Sales Force Effectiveness
WTH Wyeth Market
Research Seminar April
2008 New Business 21117.28 1 In Hand 0 RKG TRAINING - 28999 21117.28 21117.28 Launch & Brand Management
BICL - Micardis
EarlyView dashboard
changes New Business 9478.67 1 In Hand 19 Insourcing - SFE 2700 2326.58 Sales Force Effectiveness
BICL - Micardis
EarlyView dashboard
changes New Business 9478.67 1 In Hand 19 Earlyview Canada 8300 7152.09 Sales Force Effectiveness
APIFARMA -Vacinas -
Sell out mensal New Business 19034.83 1 In Hand 0 MANAGED CARE INFORMATION 14535 19034.83 Managed Care
Xponent - Viviant New Business 64627.32 0 6b - Closed Lost 17 Xponent - Projected Data 75000 64627.32 Sales Force Effectiveness
Viviant PRx Renewal 21542.44 0 6b - Closed Lost 17 Performance Rx 25000 21542.44 Sales Force Effectiveness
APIFARMA - Inf Nac
Farmacêut ica ( OTC) -
fa rmácias New Business 29254.85 1 In Hand 0 MANAGED CARE INFORMATION 22339 29254.85 Managed Care
Eurodrug_SPA_2008 Renewal 12076 1 In Hand 3 Pharmaceutical Audit 12076 12076 Portfolio Opt imization
NPA Market Dynamics New Business 60000 0 6b - Closed Lost 50
NPA MARKET DYNAMICS - ONLINE -
08241 60000 60000 Portfolio Opt imization
Adams Rx PlanTrak
adhoc New Business 20000 0 6b - Closed Lost 46 PLANTRAK SMALL PHARMA - 24573 20000 20000 Managed Care
NPA New to Brand
Weekly-Solodyn and
Ziana New Business 3000 1 In Hand 0 NPA NEW TO BRAND - 08270 3000 3000 Portfolio Opt imization
PRESENTACION
MERCADO TEST
EMBARAZO New Business 7726.56 1 In Hand 0 PAC OFFTAKE - 4 5900 7726.56 Consumer Health
LNT 138478
CO_CLIENT SERVICE
CONTRACT - CO New Business 100 1 In Hand 0
CLIENT SERVICE CONTRACT - CO-
CO_OTH CS 100 100 Sales Force Effectiveness
LNT 138479
CO_CLIENT SERVICE
CONTRACT - CO New Business 100 1 In Hand 0
CLIENT SERVICE CONTRACT - CO-
CO_OTH CS 100 100 Sales Force Effectiveness
AMG Amgen Analogs of
Brands Demonstrat ing
Sustained Growth in the
Market New Business 75000 1 In Hand 16
FORECASTING & OPPORTUNITY - L&B -
LBM - CORE - 49092 75000 75000 Launch & Brand Management
SNN Novartis Diovan
Analog Analysis New Business 48600 1 In Hand 22
FORECASTING & OPPORTUNITY - L&B -
LBM - CORE - 49092 48600 48600 Launch & Brand Management
Universe, Sample, Contact
Info
Standard Interview Guides
15%
16%
10%
10%
13%
7%
14%
7%
46%
16%
33%
38%
30%
36%
38%
68%
57%
52%
57%
60%
59%
57%
33%
28%
0% 50% 100%
12%
15%
12%
3%
6%
13%
16%
7%
33%
41%
32%
24%
26%
19%
31%
30%
55%
44%
56%
74%
68%
68%
53%
63%
0% 50% 100%
(1-3) No Impact (4-7) Some Impact (8-10) Great Deal of Impact
CUSTOMER RESPONSE -LOSS
CUSTOMER RESPONSE -WIN
7.2Comparison to other providers offerings7.4
7.1The image/reputation6.8
7.2The offering itself7.7
6.7Pricing8.0
7.2Interaction with the IMS sales rep/relationship
8.5
6.8The overall business operations at IMS to get things done
7.2
7.0The actual contract content itself6.7
6.1Pre-sales/contract negotiation process7.0
MeanTotal (n=30)Total (n=34)Mean
CUSTOMER RESPONSE -LOSS
CUSTOMER RESPONSE -WIN
7.2Comparison to other providers offerings7.4
7.1The image/reputation6.8
7.2The offering itself7.7
6.7Pricing8.0
7.2Interaction with the IMS sales rep/relationship
8.5
6.8The overall business operations at IMS to get things done
7.2
7.0The actual contract content itself6.7
6.1Pre-sales/contract negotiation process7.0
MeanTotal (n=30)Total (n=34)Mean
Analysis &
Synthesis
Process & Owners
Review Agenda
Joint Action
Planning
Win/Loss Trends –
YoY & QoQ
Win/Loss Reasons
Compares – W/L
ReasonsFrequency (response)
20000
16000
12000
8000
4000
0-4000
-8000
16
12
8
4
0
20000
16000
12000
8000
40000
-4000
-8000
16
12
8
4
0
L-IR L-OOR
W-IR W-OOR
L-IR
4417
StDev 4303
N 10
W-IR
Mean 3057
StDev 3134
Mean
N 20
W-OOR
Mean 2780
StDev 2221
N 14
1462
StDev 4394
N 20
L-OOR
Mean
Average MRCs for Win/Losses and IR/OOR
?: How does average MRC differ by wins/loss and IR/OOR
5 min• Sales Ops
• All
� ID 3-5 Specific Actions Based on Learnings –What, Who, When – and how each will be measured and communicated
Learnings & Actions
4
� Clarify and Test Reasons
� Augment and/or Add Reasons (via other lenses –marketing, LOB, ops) and determine plausibility
� Outline 3-5 Specific Win/Loss Reasons
� Provide Evidence for Each Reason
� Outcome – Win/Loss & Competitor
� Current Client / Account Relationship
� Business Problem / Client Vision
� Opportunity Profile - $, Close Date, Offerings, etc.
� Qualification / Client Feedback
� Value Prop / Competitor Value Prop
� Sales Strategy & Tactics
� Decision Makers (Political Landscape)
Description
20 min• Sales Team
• Marketing, Ops, Mgmt., LOB’s
Clarify & Question
3
10 min• Opportunity Owner
• Sales Team
Win/Loss Reasons
2
10 min• Opportunity Owner
• Sales Team
Outline Win/Loss Situation & Context
1
TimeWhoWhat#
5 min• Sales Ops
• All
� ID 3-5 Specific Actions Based on Learnings –What, Who, When – and how each will be measured and communicated
Learnings & Actions
4
� Clarify and Test Reasons
� Augment and/or Add Reasons (via other lenses –marketing, LOB, ops) and determine plausibility
� Outline 3-5 Specific Win/Loss Reasons
� Provide Evidence for Each Reason
� Outcome – Win/Loss & Competitor
� Current Client / Account Relationship
� Business Problem / Client Vision
� Opportunity Profile - $, Close Date, Offerings, etc.
� Qualification / Client Feedback
� Value Prop / Competitor Value Prop
� Sales Strategy & Tactics
� Decision Makers (Political Landscape)
Description
20 min• Sales Team
• Marketing, Ops, Mgmt., LOB’s
Clarify & Question
3
10 min• Opportunity Owner
• Sales Team
Win/Loss Reasons
2
10 min• Opportunity Owner
• Sales Team
Outline Win/Loss Situation & Context
1
TimeWhoWhat#
0%
5%
10%
15%
20%
25%
30%
35%
0%
20%
40%
60%
80%
100%
120%
% 30.00% 20.00% 15.00% 15.00% 8.00% 5.00% 3.00% 2.00% 1.00% 1.00%
Cum % 30.00% 50.00% 65.00% 80.00% 88.00% 93.00% 96.00% 98.00% 99.00% 100.00%
Value Story Serv ice Integration Availability Competitor Contract Price References Image Features
© 2009 The Sales Management Association 7
Draft Win/Loss Opportunity Review Agenda
5 min• Sales Ops
• All
� ID 3-5 Specific Actions Based on Learnings –What, Who, When – and how each will be measured and communicated
Learnings & Actions
4
� Clarify and Test Reasons
� Augment and/or Add Reasons (via other lenses –marketing, LOB, ops) and determine plausibility
� Outline 3-5 Specific Win/Loss Reasons
� Provide Evidence for Each Reason
� Outcome – Win/Loss & Competitor
� Current Client / Account Relationship
� Business Problem / Client Vision
� Opportunity Profile - $, Close Date, Offerings, etc.
� Qualification / Client Feedback
� Value Prop / Competitor Value Prop
� Sales Strategy & Tactics
� Decision Makers (Political Landscape)
Description
20 min• Sales Team
• Marketing, Ops, Mgmt., LOB’s
Clarify & Question
3
10 min• Opportunity Owner
• Sales Team
Win/Loss Reasons
2
10 min• Opportunity Owner
• Sales Team
Outline Win/Loss Situation & Context
1
TimeWhoWhat#
© 2009 The Sales Management Association 8
Potential Win-Loss Questions – Sales Teams
• If you had to do it all over again, would you bid this deal? Why or why not?
• What one thing would you do differently next time to improve your
chances of winning?
• What behaviors do you think you need to do more/less of to improve your
chances of winning?
• Knowing what you now know, what question or questions do you wish
you had asked the prospect/client?
• In the future, what would you do differently (loss) or the same (win)
against X competitor?
• Why did the competitor win/lose?
© 2009 The Sales Management Association 9
� Buyer-Seller alignment
� Breakdowns
Process
� Knowledge, skills, abilities
� Rapport/Responsive
Seller
� Capabilities
� Service perceptions
Service
� Features/Benefits
� Price/Value
Offering
� Competitive patterns
� Differentiation
Competition
� Brand promise
� Brand risk
Brand/Image
QuestionsAttribute Quantitative Scaling (Example)
On a 10-point scale, where “10”indicates “Very Satisfied” and “1”indicates “Very Dissatisfied”, how satisfied were you with the overall experience you had with ABC Co. during this particular interaction?
1 2 3 4 5 6 7 8 9 10 DK
Qualitative Probes (Example)
Was there anything missing during these discussions that you would have wanted to happen, that did not?
What could ABC Co. do differently in the future, if anything, to be more effective?
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What Are Some Win/Loss Factors or
Attributes?Areas to Investigate with Wins/Losses
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Sellers’ skills may be weak in terms of solution selling, value positioning, or negotiation, among other skills and capabilities.
Individual sellers may not fit the new success profile (e.g., consultative sales professional); customer losses may complain of hard-sells and being “sold-to”.
The company/value story may not be credible for a certain subset of customers; customer losses may make comments about the veracity of claims and allegations.
SellersSkills/ProcessStory
The company may have issues around coverage and support and may not be structured appropriately; customer losses may complain about availability and responsiveness.
There may be a significant W/L difference with regard to market segments – the company may be able to create more value or be a better fit in some, but not all segments.
Sellers may not be differentiating their sales strategy given the situation, competitive landscape, and the unique needs of the customer.
StructureSegmentsStrategy
What are Some Strategies/Actions
from Win/Loss?The Six S’s
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© 2009 The Sales Management Association
1. Regular debriefs with the customer and quarterly/annual report-outs
2. Pricing sales aid – five steps, clear decision points and language
3. Needs/Solution alignment aid and training – checklist for ensuring
synchronization
4. Reference / Success Story database – mitigate risk and add evidence
5. ROI / Value Justification aid – pre-empt the discussion and demonstrate
expertise and experience
6. Re-segment / target new industries and profiles – create ideal client
(winning) profile and focus messaging
7. Develop a measurement team – baseline up-front situation and provide
content for quarterly/annual report-outs
What are Some Strategies/Actions
from Win/Loss?Examples
12
© 2009 The Sales Management Association
• A win/loss analysis is not a “Silver Bullet” type exercise – it needs to be integrated as part of a monthly/quarterly cadence
• The more intelligence and information captured during the sales process, the more in-depth the win/loss review can be
• The win/loss reasons may be subtle – it pays to probe and drill-down
• Win/loss reviews should not be used to “beat people up” – the key is to focus on what can be done differently going forward
• Be willing to follow the logic to where it leads – phase in changes, monitor and adjust
• Don’t assume that sales teams are effectively executing the fundamentals – the prospect/client feedback is paramount
• The process often reveals sales data issues – inaccurate, incomplete, irrelevant, and inconsistent
Win/Loss Lessons Learned
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© 2009 The Sales Management Association
Questions and
Discussion
© 2009 The Sales Management Association
Thank You