Most sales organizations have a treasure trove of ideal prospects and business intelligence under their collective noses, but they don’t leverage it!
If your organization has used its CRM system for years, provided that there has been a semblance of pipeline management discipline, then you likely have a database of Lost Deals going back as long as you’ve had your CRM.
Does your sales team regularly run a Lost Deals report from two, three, four, or five-plus years ago? If they don’t, this simple and easy activity should become a regular part of territory planning and prospecting.
Does the marketing team use Lost Deal data to sharpen their marketing activities? If they don’t, they are missing the opportunity to target individuals that at one point, expressed a need for your firm’s services.
How To Leverage Lost Deals To Accelerate Revenue Growth
- Have Your CRM or Sales Operations Team Develop A Report
- Work With Your Team to Segment and Prioritize
- Prioritize Lost Deals
- Track and Manage Lost Deal Re-Engagement Efforts
How To Leverage Lost Deals To Prepare for the Future
- Define What “Lost” Means
- Attach at Least One, but Ideally Multiple Contacts to the Opportunity
- Require meaningful Reason Lost information from the salesperson.
How to Leverage Lost Deals To Accelerate Revenue Growth
1. Have your CRM or Sales Operations team develop a report
Have your CRM or Sales Operations team develop a report that every salesperson can run for her territory, vertical, or assigned account base.
2. Work With Your Team to Segment and Prioritize
Work with your team to segment and prioritize the report output. We recommend starting with meaningful Lost Deal amounts – start with average Lost Deal size on up that contributes 80% of sales growth.
3. Prioritize Lost Deals
Prioritize Lost Deals within your crucial industry segments and most competitive products and solutions. Your time is limited, so allocate sales and marketing efforts to where you’ve had the most success.
4. Track and Manage Lost Deal Re-Engagement Efforts
You have multiple options to track Lost Deal re-engagement efforts, including recording activities on the Lost Deal records, cloning the Lost Deal into a new opportunity, or creating a new Lead record. We prefer creating a new lead record for the salesperson, but any of the options can work.
How to Leverage Lost Deals to Prepare for the Future
Three actions are required to strengthen business intelligence from Lost Deals:
1. Define What Lost Means
We recommend that any deal proposed (salesperson submitted a price) can only end up Won or Lost. We recommend a “Not Pursued” sales stage for opportunities that don’t make it to the proposal.
2. Attach at Least One, but Ideally Multiple Contacts to the Opportunity
Attach at least one, but ideally multiple contacts to the opportunity. B2B sellers rarely engage only with a single person on a deal. Knowing the various people involved in a Lost Deal from years ago can shorten the re-engagement sales cycle. Associating multiple contacts with an opportunity also helps marketing with their targeting efforts.
3. Require Meaningful Reason Lost Information from Salesperson
Require meaningful Reason Lost information from the salesperson. Most companies miss the value of this piece of information. It’s easy to have salespeople select a picklist value option. Still, a brief description of why the deal was lost and the customer decision criteria can significantly help the deal re-engagement process.
Most likely, the accounts from Lost Deals are buying from a competitor, or they may now be willing to revisit the need for change.
Lost Deal re-engagement efforts jointly led by the sales and marketing team can deliver significant revenue increases by easily re-establishing business relationships and re-opening selling opportunities.
Lost Deal re-engagement efforts are an essential element of modern successful sales teams that leverage their CRM solutions. If your sales and marketing teams don’t have a formal Lost Deal re-engagement effort, now is the time to start.
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