2009 0620 win-loss analysis (from spr laptop)€¦ · win/loss analysis helps sales management...

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



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


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?


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


• Sales Team

Outline Win/Loss Situation & Context

1

TimeWhoWhat#

5 min• Sales Ops

• All


Learnings & Actions

4













Description



Clarify & Question

3


• Sales Team

Win/Loss Reasons

2


• Sales Team


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


Draft Win/Loss Opportunity Review Agenda

5 min• Sales Ops

• All


Learnings & Actions

4













Description



Clarify & Question

3


• Sales Team

Win/Loss Reasons

2


• Sales Team


1

TimeWhoWhat#


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?


� 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?


What Are Some Win/Loss Factors or

Attributes?Areas to Investigate with Wins/Losses

10


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

11


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


• 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

13


Questions and

Discussion


Thank You

2009 0620 win-loss analysis (from spr laptop)€¦ · win/loss analysis helps sales management...

Documents