The Top Three Benefits of Win-Loss Analysis: Benefit #2

In my last blog post, I started a series on what I perceive to be the Top Three Benefits of Win-Loss Analysis. The first benefit I discussed was the Ability to Gather the Most Current Competitive Information. After serious consideration, here is the second benefit I have to offer.

Benefit #2: Shifting the Focus Away From Product Comparisons to Competitive Sales Strategies/Tactics

Many companies think competitive analysis should be product-centric, when in reality, most deals are won or lost in the marketplace where purchase decisions are made. As a Partner at a major technology consulting firm once told me, “Superior Technology does not beat Superior Marketing”. Product-focused intelligence is extremely valuable but this approach alone falls far short of truly understanding the competition. Unfortunately, a majority of companies do not adequately research how the competition markets and sells their solutions to the prospect. If the program is designed properly, Win-Loss Analysis takes the focus off of products and inspects the Sales Strategies and Tactics the competition uses in their attempt to win the business. For instance, did you know football teams use Win-Loss Analysis? The week before a game, teams watch film of their previous game in an attempt to improve their play execution in practice drills later in the week. They also watch replays of their next opponent’s previous games to better understand their typical game plan and how other teams exploited weaknesses to beat them. With this information, the coaching staff is better prepared to make changes to their own game plan (strategy) and play calling (tactics) for the upcoming contest.

In sales, just as in sports, developing a winning sales plan is crucial to your success. To help meet this objective, intelligence gathered in Win-Loss interviews might include:

• Key Win or Loss factors in recent engagements vs. a specific competitor
• Competitor’s pricing, discounting and product bundling strategies
• Effectiveness of their value propositions vs. yours with prospects
• Access to C-Level decision makers
• Use of references
• Identification of patterns and recent changes in competitive behavior
• Competitive landmines commonly planted in the prospect’s mind regarding your company
• Your need for more effective marketing programs and sales tools (i.e. demos)

Each competitor uses different techniques to win the business, so it is important for your Sales teams to understand how the competition “sells” to the prospect, allowing them to develop an effective, proactive sales plan to exploit competitors’ weaknesses. Combining product-centric information with sales-focused intelligence provides your teams with a distinct competitive advantage.