Q. I was just informed that we just lost a $1.3M deal. I'm devastated. Our region was counting on this opportunity as a win to make our forecast. The customer told me we lost because of price.
What can we do now?
Thanks,
Bob
Sun City, AZ
A. Bob:
Sounds like you are facing an unfortunately familiar predicament. We have all been there. It is discouraging and disappointing. It is good that you are asking questions in an effort to figure out what happened and where to go from here. After all, as the quotes in the right margin convey, losing a sale offers up an incredible learning opportunity. Seize it! You will be amazed at what you can discover.
Turning your experience into a positive one involves four best practices that I would like to share with you: - "I WAS OUTSOLD!"
- SAMPLE LOSS LETTER
- LOSS FEEDBACK MEETING
- PROPER QUALIFICATION
1. "I WAS OUTSOLD!"
You attribute price as the cause for your loss. Price is the primary problem when the customer views your solution as a commodity and nothing more. This does not appear to be likely when your customer is buying something as complicated and sophisticated as your solution. Average reps blame their loss on price, features, or external factors. As a superstar, you know the real reason you lost. It is simple; you were outsold. More than likely, the reason for your loss was due to one or more of the following reasons. Most likely, you did not:
- properly qualify this opportunity
- access the key executive decision makers
- become involved in this opportunity early enough
- conduct adequate discovery
- assist the customer in quantifying and understanding your unique value
- gain the trust of the key decision makers
- understand or drive the buying process
- understand and influence key buying criteria
- identify your competitors and their strategies
- use one of the 12 major opportunity strategies (See Sales Strategizer) and support it with the correct tactics
2. LOSS LETTER
When an average sales rep loses a sale, she gives a silent harrumph, closes the file, and walks away. Many reps contact the customer and argue with the decision. I am astounded that so many reps act this way. All this does is confirm in the customer's mind that he made the right decision to work with someone else. A superstar sales rep knows all about cognitive dissonance (buyer's remorse), knows that the customer is buying continually, and therefore stays in touch to nurture that long-term relationship. She understands that there is only one thing worse than a big loss--not learning anything to help you and your company improve the way you serve customers. A loss letter (see example below) invites the continuance of the relationship even after the loss of the sale. Sending a loss letter is good business and helps you earn trust. I have personally experienced the benefits of this practice, and recently one of my clients did too. My Superstar client had lost her 1.2M sale to a competitor, but was able to convert the loss into a win, in part by using this best practice. It won't happen all the time, of course, but it will set the right tone for the next opportunity and position you as a true professional. The best practices in this newsletter cost you little more than a few minutes of your time but can reap huge payoffs. Make them second nature!
SAMPLE LOSS LETTER
June 21, 20XX
Mr. Jack Nicholas Senior VP of ServicesABC Systems
Chicago, IL 60603
Dear Jack:
Over the past several months I have been working closely with the staff of your _________ department to satisfy your __________ project needs. Last week I was informed of your decision to work with another supplier for this project.
Though naturally disappointed that ABC has not selected our company, I would like to extend my sincere appreciation for the opportunity to have presented our offering.
I wish you the best of luck as you begin the challenging and rewarding process of providing ________________ to your customers.
Please feel free to contact me if my team can be of any assistance to you during the design, installation and training process of your new ______ system.
Sincerely,
Michele Wie
3. LOSS FEEDBACK MEETING
Once you send the loss letter it is time to follow up with a request for a feedback meeting to analyze your loss. I suggest that you ask key questions, such as:
A. Can you tell me why we did not earn your business?
B. What was the key difference between our approach to your business and the winner?
C. Did the solution we offered to you match your business need?
D. Did you trust that we could deliver on all of our commitments to you?
E. What message can I bring back to our senior executives so that we can be a stronger contender for your business in the future?
F. What is your opinion or advice to me as someone who would like to earn your business in the future?
G. What is the key lesson I personally can learn from working with you on this opportunity?
Yes, the customer picked another vendor, but perhaps your competitor will allow cognitive dissonance to set in, or perhaps the loss letter and loss feedback meeting will even cause it. Many vendors don't keep their promises; they dine and dash. Business catastrophes might occur, and the customer may decide to jump to another vendor. You never know.
4. PROPER QUALIFICATION
In selling you will lose, the key is to insure that you do it early and cheaply. Readers of my book and those who have attended my workshops fully understand the simple BMPCC (Budget, Decision Makers, Buying Process, Decision Criteria and Competition) account qualification criteria. They know that uncovering the answers to five questions during the discovery phase of the sales process allows you to properly qualify a major opportunity and set your strategy and tactics.
After a loss you should think back and determine where you may have stumbled in your gathering or analysis of these criteria.
Bob: Keep your head high, use these best practices and remember what Hank Ford told us:
"Failure is simply the opportunity to begin again more intelligently."
-Henry Ford
All the best,
