- Use the Sales Win/Loss Ratio to make more sales with less effort.
- The Sales Win/Loss Ratio Defined
- Increasing the top number
- Decreasing the bottom number
- Increasing the sample size
- Case study
The formula is:
Sales Won / Sales Pursued.
“Sales Pursued” refers to sales that you try to win after you meet with the prospect once to qualify him or her.
This ratio quickly shows you how to make more money in less time.
You have three choices.
- One: Close more sales that you pursue (increase the top number).
- Two: Pursue fewer prospects that are never going to buy.
- Three: Once you get your win/loss ratio where you need it to be, increase the number of leads you have while keeping your ratio the same.
Your Sales Win/Loss Ratio should be between 80% and 90%.
Calculating your own ratio
- See attached PDF “Calculating your own ratio”
Increasing the top number
One way to increase the ratio is to win more of the sales that you pursue:
- Ask more/better questions to really get to the costs and missed opportunities of their challenges
- Create a solution with the customer
- Build a stronger connection/relationship
- Show value by emphasizing benefits and advantages – and matching what you say about the product/service to what the prospect says he needs
- Work with all of the decision-makers involved, not just one
- Understand the prospects needs and meet them (“answer the mail”)
Decreasing the bottom number
Don’t pursue an opportunity in which the lead is not qualified based on:
- Seeing enough value, or having a big enough challenge, to justify making a purchase
- Decision-making authority
- A deadline to take action
- A repeated pattern of not keeping their word
- A situation in which the prospect seems to be fishing for information that takes you a lot of time, and gets them what they need without spending money
Increase the Sample Size
- Get more active in generating leads.