Think Your Company Can’t Afford Win-Loss Analysis? Think Again!

As I talk with prospects about the business value of Win-Loss Analysis, I often hear comments like these:

“We already have a Win-Loss Program.”

Response: In a vast majority of cases, companies are only doing product comparisons, statistical analysis or “one-off” evaluations as the result of a recent loss, ignoring any scrutiny of a competitor’s Sales Strategies and Tactics in the marketplace where deals are actually won and lost.

“We can’t afford to dedicate internal resources to a Win-Loss program”

Response: They don’t understand how Win-Loss Analysis can positively impact the entire enterprise, so their workforce is consumed with other tasks of far lesser value. Outsourcing the task to an experienced third party is the alternative.

“We’re interested in doing Win-Loss but it will have to wait until we complete a number of other projects. Call me back next year”

Response: This is referred to as Opportunity Lost Cost which is defined as “The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.” (Investopedia). Win-Loss programs can have a direct impact on the bottom line…how about the “other projects” your teams are presently working on? Again, outsourcing is an option.

“How much does it cost? Due to the weak economy, sales are down and budgets have been cut.”

Response: What is the cost to the company to continue losing business because they do not understand how to more effectively compete in the marketplace? Most companies know their cost of sales. Here is a hypothetical example:

Deal Size: $1M
Sales Cycle: 6-12 months

Cost of Sales (COS)

Account Manager (25 hours - $85/hr)
Overlay Sales Rep (15 hours - 85/hr)
System Engineer (25 hours - 75/hr)
Tech Services (for POC) (20 hours - 50/hr)
Services Group (10 hours - $50/hr)
RFP Response Team (15 hours - 35/hr)
Executives (5 hours - $120/hr)
Product Marketing/Mgmt (10 hours - $65/hr)
Travel Expense $10,000

Total Cost of Sales $19,050

This company lost $1M in sales revenues and it cost them nearly $20,000 in “out of pocket” expenses to pursue the opportunity. Of course, COS will vary by company, length of the pre-sales engagement, how technical the products are and what resources are required during the sales cycle. However, in my example, Win-Loss Analysis could have saved this deal by better educating the Sales and Management teams on how to more effectively compete against the competitor who won the business.


To summarize my point regarding the strategic value of implementing a Win-Loss function within your company, I would like to share one of my favorite business cartoons with you.

Think of the machine gun in the cartoon as being a well-designed, effective Win-Loss weapon to better prepare your Sales Teams when they compete on the competitive battlefield. If your company could win one or more major deals per quarter, then could your company afford the cost of implementing a Win-Loss Analysis program? And when you really think about it, can your company afford not to?