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!

Character Over Talent: “What talent can build over a lifetime, bad character can destroy in a moment” – Roger Gushway

Three years ago I heard Roger Gushway speak these words: “What talent can build over a lifetime, bad character can destroy in a moment.”  Immediately I thought of various people who had reached great heights of success after a lifetime of hard work, only to see it all tragically destroyed because of one pivotal moment’s decision.  I had to ask myself, “Am I prone to the same tragedy?  When I achieve my desired success, will I have the character to sustain it?

As we aspire to achieve our goals in business and beyond, let us maximize every opportunity to build character.  Character is not acquired through learning or reading.  There is no “Character 101” course or “Character for Dummies” book.  Character is established through a series of daily decisions where the rubber meets the road.

When we choose not to compromise our morals, even if it results in loss, character is built.  When we insist on the betterment of someone else in stead of ourselves, character is built.  When our patience is tested in the fires of daily life, character is built.  When all odds are against us but we do not quit, character is built.  And as our character is built, so is our legacy.

Character does not have a time and a place.  It is always relevant, always appropriate.

In the business world, when I evaluate a vendor, a partner, an employee or a customer, I always look for character first.  I’ll take character over talent any day.

Can Top Sales Performers Be Duplicated? (Sam vs. Jen)

Moderator:
Can top sales performers be duplicated?

Sam:
Top performers always carry two qualities: a positive attitude and strong discipline. These two critical qualities cannot come from reading a book; they must be developed through experience and by overcoming challenges. So the real question is whether you can duplicate attitude and discipline. I believe that they can be influenced. They key drivers of attitude are vision and motivation. Good sales managers will identify ways to communicate a compelling vision and keep their team motivated. The key driver for discipline is accountability. This comes with regular communication and visibility of the right metrics. In short, top sales performers cannot be duplicated, but good sales performers can be inspired to be their best.

Jen:
Top sales performers must possess a combination of talent and skill. You can teach skill, but you can’t teach talent. I have seen many sales managers try to turn average performers into superstars. It’s like trying to turn a chicken into an eagle! You can teach it to flap its wings, but it still will not fly. You can teach a sale rep a thousand skills, but they will not compensate for a lack of talent. Managers struggle with this, because you cannot measure talent. So when you build your sales team hire people with talent, then you can teach them the skills they need to become top performers. If they lack talent to begin with, then they will become average at best.

Readers, what do you think? Can top sales performers be duplicated? Post your comments.