Building A Win/Loss ProgramPresented by:

Erik Glitman

CEO

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Background

Erik GlitmanCEO

Fletcher CSI

Experience:

• 30+ years experience consulting on competitive intelligence (CI)

• Focus on Win/Loss and training of Win/Loss and CI

• Secretary/Treasurer of the board of directors of the Strategic and Competitive Intelligence Professionals

• Adjunct Faculty of Champlain College (Burlington, VT) taught undergraduate courses in Competitive Intelligence

Education:

• Bachelor’s degree in Environmental Studies from Johnson State College (VT)

• Bachelor’s degree in Economics from the University of Vermont

• Masters in International Affairs from the American University

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Step 1: Understanding Win/Loss

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A formal, systematic review process for completed deals to obtain insight on the outcome, provide tactical sales intelligence, and support strategic decision making

Win/Loss Analysis is:

Win/Loss Analysis is Not:

Helps you understand why your customers are (or are not) buying your products

Provides insight into your customers’ experiences with specific sales engagements

Allows you to benchmark your firm’s performance against competitors from the customer’s perspective

“Accident reports” or “post-mortems” conducted with and/or by members of your own internal sales staff

A “one-off” review or temporary set of deal reviews as the result of a key account loss or market event

Targeted customer debriefs to provide support for predetermined strategies or actions

Overview of Win/Loss Analysis

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Types of Win/Loss and Purpose

Evaluates the sales team:

Not shared outside the sales operation

Account specific

Sales Win/Loss is about the selling process

Sales Win/Loss

Evaluates the entire offer:

Shared across all business functions

Individual and aggregated accounts

Understand weighting of decision factors and how closely they are met

Includes third party role

Focuses on value proposition & how overall product fits customer’s needs

Competitive benchmark metrics

Managed systemic deal selection

Strategic Win/Loss

Presentation

Professionalism

Politeness

Responsiveness

Fit & Function

Messaging

Reputation

Competitors

Integration

Pricing

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Effective Strategic Win/Loss Programs Cover Seven Key Decision Factors

Best Practice: Rank performance on these decision factors based on importance to the prospect and in comparison to competitor performance.

Price is often cited as the reason for a loss Yet it is often only one of many

factors that contribute to sales outcome

Ranked by role in the sale, price typically comes in between fourth and seventh

Effective W/L

Program

Service & Delivery

Product Function

Vendor

Marketing

ReferencesSales

Economics

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Additional question to ask is reason why the customer went to market

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Least Successful Programs

Only Quantitative or Qualitative

Sporadic effort

Cherry picked deals

Allow deal exclusion

Lack of executive support

Do not share results

No link to action

Most successful Programs

Mixture of qualitative and quantitative data

Continuous effort

Deals selected based on set criteria

Strong executive engagement

Regular sharing results

Deliver results to both sales and other teams

Recommend action

Successful Versus Unsuccessful Win/Loss Programs

Step 2: Drive Engagement In Win/Loss

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Win/Loss Success is Driven by Cross-Company Involvement

Total Company

Involvement

Senior Leadership:• Can incent/require

participation in the process• Has strategic interest in deal

outcomes• Looks for diagnostic insights

on individual high-profile deals

• Needs actionable recommendations and results

Sales:• Sales team is the gateway

to the customer• Sales team is incented to

sell• They need to see a return

for their contribution• Win/Loss should be more

than sales performance

Other Groups:• Refine marketing messaging• R&D and new product development• Service learns what customers need• Finance can compare terms and conditions

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Sales Force Engagement and Participation is Essential

The front-line sales force will be directly involved with the execution of the Win/Loss program, and its support is critical to encouraging client/prospect participation

How to gain buy-in from the sales force:

Communicate that the intent of the process is to be supportive and informative, and not punitive

Allow key members of the sales force the ability to provide input into the process

Share the tactical deal-level insights with the sales force directly in a timely manner so they can apply the findings successfully on new account pursuits

Show on a periodic basis how program insights are being implemented and driving greater sales success

Sales force engagement cannot be forced for a Win/Loss program to work effectively over the long-termVERY

IMPORTANT! A Win/Loss program may be undermined by the sales force if it is not perceived as being in its best interest

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Conveys the importance of the program and the level of executive commitment to prospective and current clients providing feedback

Ensures sales force participation and adherence to the program guidelines, and adds an additional degree of accountability

Provides the impetus for action and authority to leverage valuable program insights across the organization

Executive Buy-In and Support is Critical for Success

SVP Global Sales

Regional Sales VPs

Program Sponsor

Program Admin

Ensures program is meeting the needs of executive sales leadership and oversees any needed changes

Manages day to day internal coordination and communication with regional VPs and sales force

Enforces participation from regional sales force and responsible for implementing sales process changes

Sales ForceNotifies clients/prospects of the initiative, secures buy-in, and participates in the interview process

Communicates program objectives and expectations to sales executives and creates internal alignment

Example Roles and Responsibilities

Engagement Exercise

• Without effective engagement, a Win/Loss program is less likely to succeed. Think of tools that can be used to engage these groups:– Sales

– Finance

– Marketing

– Senior Management

– Others

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Step 3: Build & Execute your Win/Loss Program

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So, you have the buy-in across the company – now what do we need to get the program running?

Program Launch

Build Sample

Select Program

Construct Questions

• Pull from CRM programs (i.e. Salesforce.com)• Obtain sales team opinions of deals • Sample size large enough to be meaningful• Sample must be representative of actual wins/loss rates

• Identify key Decision factors• Build question sets, both open/closed ended • Select delivery method, internet survey or

primary call

• Quantitative vs. Qualitative• Blended Approach

Gather Data

• Win/Loss requires getting input from the decision makers

• Input structured around how they came to the decision (to buy or not to buy)

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Qualitative Focus

Details of Quantitative Versus Qualitative Win/Loss

Closed-ended surveys of the prospectsAdministered by phone or over the webCombination of pre-defined and open-

ended response questions

Approach

Pros

Cons

Allows for quick analysis of large deal volumesAbility to create powerful visuals on

performanceContent is easily integrated into charts/graphsSupports trending analysis over timeRelatively inexpensive – data collection and

analysis can be largely automatedLimited respondent time commitment requiredResults can be seen in real-time

Does not allow for probing or in-depth discussion of key issues

Respondents’ ability to provide nuanced or specific insight is limited

Open-ended responses can be challenging to categorize, quantify, and trend

Approach

Open-ended interviews with prospects conducted by experienced consultants

Discussion guide provides for both consistency and flexibility

ProsAllows for in-depth exploration of key issuesCollects powerful direct client quotes about

your firm’s and competitors’ performanceMinimizes misinterpretation of client feedbackInterview approach and topics can be tailored

to address the key points relevant to each dealCommunicates to clients that they are

important and that their input is highly valued

ConsInterviews are time-consuming and costlySkilled staff are required to conduct interviewsAnalysis requires extra time and planningIndividual deal analysis and reports take

longer to produce (not real time)Difficult to quantify and trend

Blended Focus

Quantitative Focus

Approach

Interview-based engagementQuestions are primarily

qualitative with quantitative ratings on key metrics

ProsCombines targeted interviews with

ability to trend key items “Best of both worlds” approach

Cons

Not every data point can be precisely quantified or tracked over time

Sample list should be representative of the deal universe, and have sufficient volume to ensure success,

metrics to live by:

Deal Name Deal Type Deal SizeDeal Closing

DateDecisionMaker(s)

Contact EmailContact Phone

ABC Corp. Loss $210M 5/3/2017 John Smith J.Smith@ABC.com 800-867-5309

XYZ Corp. Win $75M 4/25/2017 Jane Smith Jane_Smith@xyz.com 800-555-5555

123 Corp. Win 10M 3/14/17 Paul Smith Paul_smith@123.com 123-456-7890

Sample list must include the following elements to ensure that outreach, discussion, and analysis are uniform

Roughly 50% of Decision makers will participate

60% - Wins Take into account these ratios in selecting sample volume 40% - Losses

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Gathering Data Exercise

• What actions can help convince salespeople to participate?

• What criteria would you use to select deals?

• Why should decision makers participate in the process?

• When is Quantitative the best collection tool?

• When should you use Qualitative?

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Qualification

and RFP

Issuance

ProposalsInitial Down

Select?

Presentation

& Proof of

Concept

Site Visits /

References

Final

Selection

Factors Factors Factors Factors Factors Factors

Pre-Existing Relationship

Range/Scale of Services

Reputation for Service Quality

Support Tools and

Technology Industry Rep.

Employee Transition

Implementation Ease and Time

Integration of Solution

Program Management

Quality of Proposal Subject Knowledge

Initial Pricing Expertise Professionalism Responsiveness Regulatory

Compliance Innovation Solution Risk Terms and

Conditions

Flexibility in Negotiation

Thought Leadership Quality of

Presentation Staff Competencies

Proof of Concept Verification of

Specific Capabilities Is Reference

Appropriate? Is the Offer

Differentiated from Competition?

Cultural Fit Established

Rapport Industry Expertise Listen/Show

Understanding Terms & Conditions

Flexibility Solution Scalability

Shaping the Discussion Through Question Sets Based on Key Decision Factors

While each customer engagement is unique, each also has consistent elements. Factors considered during the evaluation process can vary in order and weight in the decision, and a well-executed Win/Loss program should be able to capture this information effectively.

Sample Evaluation Process Elements

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Build your question set base on the customer decision journey

Poker Analogy

• What are the table stakes

• What is the opening bid requirement

• What is the minimum winning bid

• What were the differentiation factors

• What was the winning bid

• What were the excess values offered

• What were the negative values offered

Process steps

• What triggers the decision to go to market

• How do they select vendors

• What criteria are used to evaluate vendors and which is most important

• What is the decision process used to select

– First round

– Finalist

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Getting Strategic information from Win/Loss

It is always better, and easier, to pull out information when the information is included in the first place

Keep the question set concise and complete

Create the question set with a strategic mindset

Develop questions that target each buyer type and segment Understand the reason why the prospect went to market

Determine your buyer types and segmentation

Compare performance of the competitors to the prospect decision factors Compare competitor performance to your own

Include competitor questions when acquiring benchmark data

Each has its own advantages Broader open-ended questions allow for more options to cover issues

Decide on open or close ended data collection

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Shaping the Discussion – Exercise

• What questions would you use to collect insight on the decision factors– Come up with at least five total

– Avoid leading questions

• What decision factors would you consider important in an evaluation– Consider your own industry

– Rank the factors in importance

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Step 4: Analyzing the Results

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Keep in Mind:

Reporting on deals is the easy part

Analysis needs to be applied to understand the decision factors

Variety of analysis tools are needed to complete the assessments

Purpose of analysis is to turn information into results

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Use analysis tools creatively

Common Tools

Gap Analysis Frequency Analysis Differentiation Analysis Trending Reputation Analysis

Advanced Tools

Sensitivity Analysis Distribution Analysis Voice of the Customer Buyer Types Sentiment Analysis

Company: Segment: Decision Date:

Win/Loss Status:

Client Respondent:

[VENDOR A] Respondent:

[CLIENT A] Retail January 2011 Loss

Director of Service Vice President, Business Development

Opportunity Overview

[CLIENT A] selected [VENDOR B] over [VENDOR A] for the following reasons: Smaller firm Perception they would receive a more “personal touch” Degree of overall comfort with the relationship

[CLIENT A]stated that they had confidence that any of the competing providers could have worked effectively with their account. They also noted that [VENDOR A] had clear industry experience as evidenced by their [peer] references, and offered technology that was superior to [VENDOR B]. The one key difference between the three finalists was the size of the winner. [CLIENT A] liked the “personal touch” inherent with a smaller firm. [CLIENT A] described themselves as a practical company that was not motivated by the best technology or the best price, but by a practical solution to their needs from a partner they were comfortable with.

Executive Summary

[VENDOR A] Performance Summary by Category

Sales Process Effectiveness

Economic Factors

Value Proposition Alignment

Purchase Decision Process

NEUTRAL

FAVORABLE NEUTRAL

UNFAVORABLE

[VENDOR A] offered the fresh perspective [CLIENT A] desired

[VENDOR A] had precisely the type of experience desired

[CLIENT A] was leaning towards [VENDOR B] prior to seeing any of the final presentations

The overall solution offered by [VENDOR A] was not perceived to be of higher quality or value adding potential than the other finalists

[CLIENT A] was more comfortable working with a smaller firm and believed that they would be able to build a stronger relationship

[VENDOR A]’s rich retail auto after-market experience was appealing to [CLIENT A]. They would consider [VENDOR A] again if their new relationship with [VENDOR B] is unsatisfactory

[VENDOR A] was considered a good value

Each finalist claimed to posess the ability to produce attractive recoveries. [CLIENT A] did not doubt the claims, but did not believe that [VENDOR A] possessed any inherent superiority

The prices from the finalists were similar. The winner was not the lowest priced. [CLIENT A] did not attempt to negotiate a lower price

The [VENDOR A] team was well received; there was no hint of disappointment with the interaction

[CLIENT A] believed they were important to [VENDOR A], who would deliver quality service with an effective team

[VENDOR A]’s [peer] references earned [VENDOR A] finalist status

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Taking Win/Loss to the strategic level

•Don’t rely on a single data point

•Need a representative sample

Analysis must be done on a multi-deal data set

•Against customer expectations

•Against competitors

Examine performance on all decision factors

•With competitors

•With customer segments

Find elements that are common in all wins or all losses

•Focus on the elements with the greatest impact first

•Examine the value proposition and its match to customer needs

Rank the elements in terms of their impact on the decision process

•Where performance is below expectations

•Below competitor performance

•And there is a high importance to the decision

Define a strategy to fix elements

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Two kinds of recommendations emerge from analysis

Sales Recommendations

Cover changes to the sales process and support

Sales team performance

References and sites

Autonomy

Messaging

Non-Sales Recommendations

Messaging and Marketing

Service and Support

Third party (broker) performance

Finance

Solution, Capabilities, Features

Claims processing

Strategy

Competitive positioning

Best Practice: Recommendations should be linked to specific areas for improvement or to highlight a competitive advantage. Backing recommendations with prospect quotes add validity and force.

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Analysis Exercise

• Using the sample deal write-up, identify the key decision factors

• Which factors are most important?

• Where should improvements be focused for greatest impact?

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Conclusion

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All Win/Loss Should Drive Change

As with any Market or Competitive Intelligence effort, Win/Loss is only as effective as the change in engenders

If nothing changes, there is no impact, and programs without impact tend to fail by year three

‒ Year One: “Wow, this is amazing information”‒ Year Two: “Wow, this is incredible. Why haven’t we fixed that?”‒ Year Three: “Yes we know about that. Tell me something new.”

Every company has a “brick wall” and Win/Loss will identify it. Not every company is willing or able to remove the brick wall

Without Implementation, the process will not drive change

Current Win/Loss Program

Your company may have a Win/Loss program in

place in the sales department. Build off the

existing Win/Loss program by adding in

non-sales related questions.

Informing Strategy

Use Win/Loss to inform strategy with insight from

the purchase decision makers and competitors.

Position your strategy around what is important

to the buyers decision process.

Benchmarking

Use Win/Loss to benchmark against

competitors.

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Using Third Party Support

Third party roles depend on needs and abilities

Common role is to use third party to gather the Win/Loss data through interviews and surveys

Third parties also provide analysis and recommendations

Third party can incorporate Win/Loss findings into strategy workshops to help build longer term perspectives

Adding third party frees up internal staff to focus on managing the implementation and producing change

Third parties are neutral without adding bias in reporting

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Questions?

Fletcher/CSI, LLC

Erik Glitman

(802) 660-9636

info@fletchercsi.com

erik_glitman@fletchercsi.com

www.fletchercsi.com

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