“Apologies, we don’t use that product.” Or maybe, “No, that’s not part of our service package.” How many times a year do your salespeople utter these words or ones like them? With those words, you could be missing out on profit potential. Often your customers might be shouting out for another product or service. One of the sure ways to hear them is to track and develop a lost sales analysis process and decipher the message.
Lost sales analysis is a systematic method of discovering why customers did not buy your products or services. Knowing why they did not buy is critical in preventing future lost orders and realizing the gaps in your product/ service portfolio and maintaining a solid customer base. Lost sales Analysis highlights the changes needed in the products or services are needed to gain and retain customers. It gives a specific information on pricing, service, competitor strategies and even market trends to help you gain competitive advantage.
Benefits of lost sales analysis:
o Shows why customers buy from your competitors
o Indicates changes that make you more competitive
o Serves customers instead of replacing them
o Wins more bids on profitable projects and higher revenue rates
At what level is your product losing sales to its competitor?
o At awareness Level.
o At consideration Level –
If not considered then reasons for not considering.
If considered then why he did not buy.
o At product evaluation level–
At showroom / dealership level.
At pricing / commercial terms level.