The Lost Art of Lost Metrics: Turning Past Losses into Future Wins

Unless you expect a 100% win rate, a lost deal is not a bad thing. In fact, if you are capturing the right information about your lost deals, then you can turn past losses into future wins! You can identify exactly where to focus your sales training, competitive strategies and positioning. Many sales organizations track the reasons why their deals were lost, but this only paints part of the picture. Let us examine one highly valuable lost metric that is often overlooked…

Lost the Deal

Based on the manager’s response in the comic strip above, it may seem that while the sales rep lost his deal, the manager lost his mind! The manager, however, is asking exactly the right question: “Where did you leave it last?” In other words, “Where was your deal before you lost it?” It is important to capture in which stage of the sales cycle a deal was lost. I call this the “Lost Stage”, the stage where deals disappear.

The Lost Stage, coupled with the Lost Reason, together provide a more complete understanding of your sales challenges. Consider the following two scenarios:

Scenario 1:
70% of deals lost in a given year were lost due to price. The company doesn’t know where in the sales cycle they were lost, only that they were lost because of price. To address the problem, the VP of Sales invests in negotiation training for the sales team and increases the threshold for allowable discounts from 10% to 20%.

Scenario 2:
70% of deals lost in a given year were lost due to price, 90% of which were lost during discovery. Now the VP of Sales understands that reps are disclosing cost even before the pain is quantified and the solution is understood by the prospect. He therefore directs his training efforts to the front half of the sales cycle.

In the first scenario above, the VP of Sales would have invested significant resources on negotiation training, but to no avail. Decreasing allowable discount thresholds was likely to also decreased the value of deals won. This would have yielded the opposite result from what was intended because of the false assumption that the problem was in the latter parts of the sales cycle. Worst of all, they would never have known it!

Knowing why deals were lost without understanding when they were lost can sometimes be misleading. Capturing both the Lost Reason and the Lost Stage provides a more complete and accurate picture. This leads to wiser, more informed decisions, which ultimately leads to improved sales effectiveness.

Capturing the Lost Stage metric can help turn past losses into future wins!

How to Inspire End User Adoption

If your organization struggles with end user adoption for new processes and technologies then this post will help. The practical insights provided below have been proven to work whether deploying a new CRM system or a new process within existing technology.

The seeds of end user adoption are planted long before implementation. The secret is to create a sense of ownership and positive anticipation leading up to deployment.

Consider the foundational meaning of the word “adoption”. When a parent “adopts” a child, they take one that belonged to another and makes them their own. By this definition, true adoption goes beyond meeting the minimum requirements to a sense of personal responsibility and expected value.

To create a sense of ownership, create a committee (whether formal or informal) that is to actively participate in shaping the process or technology being deployed. This team should have at least one representative from each role being effected. Guide them to provide input at pre-established milestones.

Be sure to listen carefully and value their input. Give them a sense of ownership. Only the true owner of a project can offer a sense of ownership to selected others. If you do this well, they will advocate the new process to their peers well before implementation. You will have actually effected the culture, which will not be easily changed.

Now, what if we still have an issue with adoption; what if 100% of your sales team members are not passionate evangelists of your process (imagine that!)?

This is where the stick comes in. The stick is to be used only when the carrot doesn’t work. Willful adoption is always more effective than forced adoption.

The following guidelines will help you to continuously increase adoption:

1. Establish metrics to measure adoption AND the expected results of adoption.
2. Use the metrics you established.
3. Acknowledge those who are adopting well and highlight their positive results to their peers.
4. Point out those who are not adopting well.
5. Managers, hold your team members accountable. Manage beyond metrics. Interact with each member.
6. Executives, hold your managers accountable to holding their team members accountable.

How do you drive adoption? You don’t. You inspire adoption!

Is Sales an Art or a Science? (Sam vs. Jen)

Meet Sam

Sam is a firm believer that sales is a science. Any sales person who takes their profession seriously will establish a very structured and planned methodology. Sam has mastered the process of establishing a target list, carefully scripting conversation tracks, setting pipeline targets and tracking progress through the sales cycle. He always knows where he stands and can adjust quickly when required. “Make your proven sales process repeatable”, says Sam “and your successful results will be predictable.”

Meet Jen

Jen is a firm believer that sales is an art. No two deals are the same; there are too many variables. Timing, economic landscape, personal drivers, budgetary constraints and unexpected circumstances are just some of the moving factors that cannot be predicted and therefore cannot be boxed into a “one size fits all” process. Every conversation will take on its own life and every sales cycle is unique. “Sales is governed by relationships, and relationships are not predictable”, says Jen “therefore sales cannot conform to a repeatable process and definitely cannot be captured in a CRM system!”

Join the Debate

Do you agree with Sam or Jen?  Please explain.