Let’s face it: no one likes to lose business. That empty feeling after losing a hard-fought battle can be devastating, especially if you lose a deal in one of your key accounts that you forecasted at a 90 percent close rate. It is an extremely emotional time for both you and your sales manager. When you receive the bad news via a phone call or email, your initial reaction might be to strike back and tell your client how foolish they are. They must have missed something in your proposal! Your competition must be lying to them. They are making a big mistake if they proceed with anyone other than you. You might feel an urge to give your client a piece of your mind. Perhaps even your sales manager is urging you to set up a meeting in an attempt to salvage the deal. The extreme emotions that follow this bad news are all over the map, and this is when it is critical to keep your emotions in check.
I have been in this situation more times than I would like to admit. The fact of the matter is that the longer you are in sales, the more this will happen. We all want to win every deal, and we all believe we should win every deal. But it is unrealistic to expect a 100 percent hit ratio. So let’s make sure we make the most of a lost sale. What do I mean by this? How can we turn a lost sale into a learning opportunity? Please read on.
This particular transaction may be lost, but let’s be smart about learning from the experience. Instead of calling your client and telling them they’re an idiot, take the high road. Call them, express that you value your relationship, and apologize for not presenting a proposal that fully met their needs. Request a debrief meeting where you, and possibly your sales manager, can understand where your proposal fell short. If possible, ask for a detailed comparison of your offer to the winning proposal. In many cases, the client may not be willing to provide this level of detail, but it is worth asking.
What you really want to understand is the primary reason why you lost the business. The only way to get to the real reason is to act in a professional manner. Acting out of emotion and trying to salvage the deal during this debrief session is not advisable. Your primary objective should be to uncover the bottom-line reason for the loss. This information will not only better position you for future business with this account but will also provide valuable feedback on how your competition is winning business. This competitor will likely appear in other accounts you are targeting, so why not learn about their perceived competitive advantage?
Gaining as much insight as possible during this debrief session will benefit you. Additionally, your client will appreciate your professional approach to losing the deal. This assumes you genuinely want to understand how you can better serve the account by learning from this loss. If done properly, you will enhance your business relationship with your client. This certainly beats the alternative of sabotaging the relationship by acting out of emotion and throwing your client under the bus.
If you lose business, doesn’t it make sense to understand why? Additionally, doesn’t it make sense to maintain a business relationship with a client you’ve worked with for a long time? Before you respond out of pure emotion, take some time to cool off so that you can respond professionally. Words matter and are very powerful.
Last month, at the bottom of my newsletter, I wrote the following:
One meaningful way retirees can give back is by volunteering with SCORE (Service Corps of Retired Executives), a resource partner of the Small Business Administration founded in 1964. Today, SCORE has more than 10,000 volunteers nationwide. Locally, the Southern Maryland chapter includes 30 volunteers.
I have served as a SCORE business mentor for several years. Many clients lack the financial resources to hire consultants, making volunteer expertise invaluable. Small businesses are the backbone of the American economy, and many entrepreneurs rely on SCORE for guidance. From firsthand experience, I can say that mentoring through SCORE is extremely rewarding. You encounter diverse business challenges and have the opportunity to draw on real-world experience that many of us take for granted as “common sense,” but which can be eye-opening for business owners.
Federal funding for SCORE has been significantly reduced this year. Now more than ever, individual and corporate support is critical to sustaining this important service. Please consider supporting this tax-deductible cause. Click HERE to donate and learn more about becoming a SCORE mentor. Please don’t hesitate to reach out to me directly. If you have already made a donation or plan on making one, please send me a quick note so I can thank you personally.
UNIVERSAL SALES TRUTH #2
Use words carefully — think before responding Proverbs 12:18
Rash language cuts and maims,
but there is healing in the words of the wise.
