ROI Calculations for Implementing a Win/Loss Program

ROI Calculations for Implementing a Win Loss Program

Monthly CX/CI Intelligence Webinar Series:

Primary Research CX/CI Experts

www.market-awareness.com


VoiceoftheBusinessAcademy.com


•  On-demand courses and roadmaps

•  Accreditation and certification

•  “How” in addition to “why”

•  Templates to implement in your organization

•  Created by professionals who have implemented in the real-world

•  Organizations can select courses to create their own training programs

What We’ll Be Covering

1.  5 intelligence pillars every intelligence program needs

2.  Making more informed decisions based on the intelligence

3.  Calculating the viability of a win/loss intelligence program

4.  Application of predictive analytics

5.  Generating impact analysis reports

6.  Calculating ROI regarding increased in win rate

7.  Calculating ROI regarding in jeopardy customers

8.  Calculating ROI regarding lost prospects that will re-engage

9.  Calculating ROI regarding existing customers that qualify to be upsold

10. Other win/loss ROI areas


Win/Loss Intelligence Program Foundation

•  Internal and external information

Most organizations get biased information

Information is “not” intelligence

Measurable information can become intelligence

Academy Course:

“The 5 Pillars Every Intelligence Program Needs”


Most Organizations Are Challenged Because

1.  Only Care About How Much They Are Winning

2.  Sending Out Surveys

3.  Biased


What Organizations Should Be Concerned About

1.  Making more informed decisions

2.  View their win-rate differently

“It’s great that you win 20% of your projects – but that also means you’re giving 80% away

to your competitors”

3.  Including partners


How Do I Calculate the Viability of a Win/Loss Program?

1.  Based on Revenues

Fake company – assumption #1: $23mm in yearly revenues

Fake company – assumption #2: 20% win-rate

$115,000,000 $115mm (yearly revenues) x 20% (win-rate) = $23mm

$92,000,000 $115mm (yearly revenues) x 80% (loss-rate) = $92mm


Return on Investment Calculations

1.  Increase revenues (win-rate):

Was: 20% win-rate

Now: 30% win-rate (20% + 10%)

$115mm (yearly revenue) * 30% (new win-rate) = $34,500,000

Summary of Increasing the Win-Rate:

•  $23mm (yearly revenue) with a 20% (win-rate)

•  ($115mm x 20% win-rate = $23mm in revenues)

•  Increased win-rate by 10% because of win/loss intelligence program

•  ($115mm x 30% new win-rate = $34.5mm in revenues)

•  $34.5mm - $23mm = $11.5mm



2.  Upselling to Existing Customers:

19% of your existing customers can be upsold to

They are on average willing to spend 30% of the original purchase price

A win/loss program KPI’s would identify which existing customers

Summary of Upselling to Existing Customers:

•  $23mm yearly revenue

•  Average revenue for a normal project is $260k (which means at $23mm they have

roughly 88 total projects)

•  19% of existing customers can be upsold to = roughly 17 existing customers

•  30% upsell of the average $260k per project = $78k

•  17 existing customers upsold by $78k = roughly $1.3mm



3.  Saving In-Jeopardy Existing Customers:

11% of your existing customers are in-jeopardy on leaving your organization

63% of normal project revenue to stay engaged

Summary of Saving In-Jeopardy Existing Customers:

•  $23mm yearly revenue, $260k per project = 88 projects

•  88 projects multiplied by 11% = roughly 10 are in-jeopardy

•  $260k per project multiplied by 63% = $163,800

•  Saving the 10 in-jeopardy projects at $163,800 = roughly $1.6mm



4.  Re-engaging Lost Prospects:

23% of lost prospects re-engage in some fashion

Summary of Re-engaging Lost Prospects:

•  $92mm in lost business (20% win-rate and $23mm yearly revenues)

•  Organizations only incorporate 20% of their lost prospects in the win/loss program =

$18.4mm

•  Of the $18.4mm, 23% re-engage in some fashion = $4.2mm



5.  Re-engaging Dormant Partners:

11% of existing partners are dormant

Summary of Re-engaging Dormant Partners: •  11 partner projects multiplied by 11% = roughly 1.2 projects •  $260k per project multiplied by 1.2 projects = $312k



6.  Increasing Customer Retention Rates:

8% of yearly revenues

Aware of customer issues and concerns immediately – versus never or yearly

Summary of Increasing Customer Retention Rates:

•  $23mm in current revenue multiplied by 8% = $1.8


Recap All ROI Calculations in the Webinar

$23mm (existing revenues) 20% (win-rate):

•  +11.5mm (increase in win-rate)

•  +1.3mm (upsell existing customers)

•  +1.6mm (saving in-jeopardy existing customers)

•  +4.2mm (re-engaging lost prospects)

•  +312k (re-engaging dormant partners)

•  +1.8mm (increasing existing customer retention)


Course Conclusion

Most organizations know there are benefits – but have no idea where to start

Organizations need to ensure they adhere to the 5 intelligence pillars

Academy has dozens of course to help you build your whole program

Intelligence programs can be complicated, but don’t have to be

Can offer various competitive advantages

Use the spreadsheet formulas to drive estimates for your organization

Increase win-rates

Identify which customers to upsell to

Re-engage lost prospects

Re-engage dormant partners

Save existing customers that are in-jeopardy of leaving your organization

Fix strategic and tactical areas to increase customer retention


Upcoming Webinars (register @ www.market-awareness.com)

Choose which future webinars you want us to feature:


Thank you…

Email any questions to:

[email protected]


Date post:	16-Apr-2017
Category:	Business
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