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7 Tips on how to conduct a Win-Loss Analysis

If you are not asking the right questions and making the necessary alterations, you will repeat mistakes, squander time and resources, and—ultimately—fail. The best source of primary intel is your direct line to your prospects and customers. The best tool is the win-loss analysis.

It's crucial to continuously evaluate processes and performance to achieve successful B2B growth. The best source of primary intel is your direct line to your prospects and customers. You're stalling if you're not evolving. In order to make strategic and tactical decisions, train and onboard new employees, develop products, and provide services, feedback is the foundation. However, if you are not asking the right questions and making the necessary alterations, you will repeat mistakes, squander time and resources, and—ultimately—fail. But, as you know, failing fast isn’t fun. It’s even less fun when you hurt your business and customer relationships in the process. When you can turn losses into wins or insights however. That is where the fun starts.

What is a win-loss analysis?

A win-loss analysis is an exercise to analyze your marketing and sales process from the customer’s point of view. The primary goal is to identify what isn’t working and why. The exercise is particularly useful if you are experiencing a reduction in sales or if the sales process isn’t consistent. A win-loss analysis allows you to understand your conversion rates, customer pain points and how to improve the customer experience. Win-loss analyses are often used when business owners notice a dip in sales or when they want to improve the sales process. These analyses can help identify potential challenges in the sales process. They can also help determine why sales are dropping and what can be done to increase them.

Define the problem

Win-loss analyses can be applied to a number of different business problems. It’s important to define the problem you’re addressing with the win-loss analysis before beginning the analysis itself. Common problems for which win-loss analyses are good solutions include:

- Sales process challenges

- Are you having trouble closing sales?

- Did you notice a drop in conversion rates?

A win-loss analysis can help identify where in the sales process you’re losing customers. It can also help you determine what you can do to improve the sales process. - Customer acquisition challenges - Are you generating leads but not converting them? This could be due to a number of different things, including a bad sales process, bad marketing, or a bad sales experience. A win-loss analysis can help identify what’s causing potential customers to leave.

Collect the data

The first step of any win-loss analysis is to collect the data. The data you’ll collect depends on the problem you’re trying to solve. For instance, if your sales process challenge is that you’re not closing enough sales, you’ll want to collect data on sales numbers. This data could include why your customers are (not) buying your product. If sales are down but customer demand is up, you know that conversion rates are dropping. You can examine customer records to see which ones converted and which ones didn’t.

You can break down your win rate by prospect type, product, distribution channel, and more. - How long it’s taking to complete a sale - You can also look at the time it’s taking to close a sale. If it’s longer than you think it should be, there could be a problem in the sales process.

Analyze your findings

After you’ve collected the data, you can start analyzing it to find patterns and anomalies. The first step in this process is to identify the problem you’re trying to solve. Once you’ve determined what you’re trying to figure out, you can start looking at the data you’ve collected. For instance, if the data shows that sales are dropping, you want to figure out why that’s happening. Is it happening to all customers? What about the ones who bought last month? Are there any anomalies in the data that might help you identify the problem? To begin your analysis, you’ll want to create an initial visual representation of your data. This could be a simple table, a graph, or something else entirely. The important part is that you’re able to see your data all at once to start identifying potential issues.

Find The Root Cause(s)

Now that you’ve identified what isn’t working, you can start to figure out why. The first thing you want to do is make a list of every possible cause you can think of. This is a brainstorming exercise and you shouldn’t feel limited by your list. Once you’ve created your list, you can start to categorize each potential cause. This will help you make connections between different causes. You can then prioritize the causes based on how much of an impact they’re having on your sales process. Once you’ve prioritized the causes, you can start to figure out how to fix them. This will depend on the cause, but you can use the same methods you used to solve the original problem: - Conduct a win-loss analysis - The same method you used to identify the problem can be used to solve it. - Figure out what you’re doing wrong. To solve the problem, you first have to identify what you’re doing wrong. - Find out what you can do better - Once you know what you’re doing wrong, you can determine what you can do better.

Train sales people

After you’ve identified what isn’t working and why, it’s time to start making changes. The best way to do this is to train your sales and marketing team on the findings from your win-loss analysis. You can do this in one of two ways: do a training session or create a training document. If you don’t have time for a training session, you can also create a training document. This document can be as simple as an outline or spreadsheet of your analysis findings.

Reprioritize your marketing activities and sales actions

Once you’ve dealt with the root causes of the problems in your win-loss analysis, you can begin to reprioritize your marketing and sales actions. This can include changing existing strategies or creating new strategies from scratch. It can also include retraining your sales and marketing teams. Once you’ve restated your marketing and sales strategies, you can then measure their effectiveness with another win-loss analysis. This will enable you to continually assess your process and performance and make changes as needed.

A win-loss analysis is a business process that allows you to quickly determine the root causes of problems in your business. To conduct a win-loss analysis:

The biggest advantage of this tool is that it allows you to identify and resolve problems quickly and ethically, which saves time and reduces harm to your relationship with customers, suppliers and others. In addition, your analysis serves as documentation that you undertook reasonable efforts to try to help the customer.

The win-loss analysis plays an important role in many Lean Six Sigma methodologies. It plays a specific role in the DMAIC methodology because it’s used at Steps 3, 4 and 5 respectively as part of brainstorming solutions using Failure Mode Effects Analysis (FMECA), developing countermeasures based on PV Factor/Cost Analysis/Payback Period/ROI Analysis, and identifying metrics for monitoring solutions’ effectiveness. The win-loss analysis is also used extensively in solving production and process issues (e.g., ABC & U Charting). Probability plotting is essentially synonymous with a type of win-loss analysis where data are plotted instead on a control chart rather than an impact chart (e.g., Pareto chart).

Win-loss analyses are a great way to assess your marketing and sales process. They can help you identify areas for improvement and enable you to change your strategy accordingly. When done effectively, win-loss analyses help you to progress as a business. One of the best ways to conduct a win-loss analysis is to start with a SWOT analysis. This will allow you to look at your business from a broader perspective before diving into your specific challenges. Using these methods, you can assess your process, identify room for improvement, and implement changes that will help your business grow.

Daan Pruijssers
Verified writer

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