So often, a lost deal feels like a defeat and we quickly move on so we can find our next prospect and get another win. Losing never feels good, but there are insights we can learn from lost deals when we analyse them. It’s important to focus on the positive, but if you don’t analyse why the deal was lost then you won’t know what can be fixed in the future.
1 Personalities Don’t Mesh
Unfortunately in business, a lot of what we do (especially in sales) comes down to how much we instinctually like or dislike someone. Approximately 70% of all lost deals are due to something “not feeling right”, miscommunication, or one company operating in a way that doesn’t mesh well with another.
2 Miscommunication
Following on from the point above, many deals don’t go through because the communication channels haven’t been clear enough, especially early on in the deal. When the communication channels aren’t open and clear it breeds uncertainty and mistrust, and this will kill a deal faster than anything else.
3 Don’t Meet on Cost
Sometimes, a deal will fall through because you just can’t meet with the client on the cost. They want more than you can realistically offer for the price they want, and you know that if you say yes to them it will breed resentment in your company and they are much more likely to take advantage of you later. This is unavoidable from time to time, and you should consider how your marketing attracted the wrong client.
4 Didn’t Explain the Value
If you are marketing to the right companies but they won’t agree to your quote, consider whether you are fully explaining the value you bring and why they will see that money return by working with you. Deals are often lost because one side didn’t properly explain their value proposition – and if there are other companies competing for their attention this can be fatal for a deal.
5 Over-Promising
If your deals are falling through once a client has agreed to work with you, you need to consider if you are over-promising what you can do for them. If you promise them a certain service provided by a certain timeframe and can’t deliver, they won’t be able to trust you. If this is happening, analyse your business and consider if you are offering too much for too little, or taking on too many projects for your team. While it is tempting for a growing business to say yes to everyone who comes your way, true growth comes from finding what you do incredibly well and outshining the competition.