Knowing why you lost one sale is probably more important that understanding why you won another.
It's great to know when your price, expertise, experience or aftersales service secures you a new deal. It says you're doing the right things and that, if repeated, they could win you more business.
But understanding why you were beaten by a rival could be even more insightful. Sometimes the reasons can be surprising. But many small firms fail to follow up deals they've failed to secure and as a result miss out on information that could help them do better in the future.
The easiest way to find out why you missed out on a piece of business is to ask the customer. Some won't tell you, but many will, and the reason is often more than just price. Customers are often willing to spend more if they're confident that they'll get what they pay for.
Here are some reasons why customers don't buy from you, even if you beat other suppliers on price:
- They didn't like the sales person. Never forget that people buy from people.
- You failed to return a call. You can't be sure when the customer is going to make a buying decision, which means you have to stay in touch.
- Your business was the wrong size. The scale of a supplier's business is important to some customers.
- Your approach did not meet their expectations. For example, they wanted more detailed pricing estimates than you were willing to give.
- They didn't think your product did exactly what they wanted. How well did you understand and manage their needs?
Having examined the reasons why you lost a sale, the next step is to take action, if appropriate. You may not want, or be able, to fix every potential issue with your sales technique or the product you sell.
But by gaining some understanding of why a customer chose to reject you for someone else, you've secured some vital information which could help you to turn the next potential loss into a win.
