The perfect industry dynamics
If you were to design an industry that was perfect for a systematic win-loss analysis program, you’d be staring at the pharmaceutical clinical development service provider market.
One win or loss can make or break a CRO or CDMO. So why don’t more companies engage in the simple exercise of conducting win-loss research? In this article, we will discuss some possible reasons why, how to overcome them, and the benefits accrued from a proper win-loss assessment program. In most professional sales organizations within their CRM system is a way to track proposal activity and, ultimately, why they won or lost an opportunity. Typically, the reason for each win or loss is captured via a drop- down menu with options such as:
- Price/Cost
- Customer choose not to proceed
- Lack of therapeutic expertise or experience
- Project delayed
- Lack of capacity
- Etc.
Case study:
While this data might be valuable, it really depends on who is filling out the CRM and what actions are taken based on this superficial data.
When our managing director at Lake House Insights (LHI) developed and implemented the first win-loss market research at the world’s largest CRO they found that, according to their CRM, that more than two-thirds of the lost opportunities were marked as either “Cost” or “Customer choose not to proceed.” When the data came back, the percent moved from roughly two- thirds to one third. The implication being that one-third of the CRO’s lost opportunities were misattributed as to why. As a result of the data, the CRO implemented new training and feedback initiatives to improve their sales performance.
The actual research effort was outsourced to an independent market research provider which helped instill confidence among the sponsors. While the web-based survey was the first step, some of the most valuable information was attained by conducting in-depth telephone interviews. For example, when a sponsor indicated that they did not have confidence in the project manager, the interviews were able to probe deeper to understand specifically where the lack of confidence emanated from.
Why don’t more service providers conduct win-loss research?
2. Cost and Unfamiliarity: Most people in the clinical development services industry do not have a great understanding or experience in conducting primary market research. One of the assumptions is that it’s too expensive. Win-loss research does not have to be expensive and it’s quick to implement. Using Lake House Insights’ trusted process, we can get you up-and-running in short order and at a reasonable cost.
3. Human Nature: Accountability is difficult. Asking the question: “How is my team performing?” opens everyone up for a lot on uncertainty and potentially uncomfortable conversations. As a manager, CEO, Vice President, you may believe your teams are performing at a high level. What win-loss research reveals is how they are performing compared to your competition. You might have highly qualified project managers, but the real question is, how were they viewed against their peers in a bid defense setting? Win-loss research will answer these questions.
4. Lack of internal resources: We hear this a lot: “I just don’t have the resources to assign to this initiative.” We understand and just want you to know this is not a resource-intensive process. LHI has market research expertise, we have software, we have draft questionnaires, and we have data reporting templates. Typically what we need from our customers is an executive sponsor and someone how can run a report from your CRM.
A. There is usually a gap in market research design experience
B. Using an independent, outside organization removes the notion of bias from your customer’s perspective
C. Response rates increase dramatically when using an independent provider
Overcoming obstacles
While conducting a one-off win-loss analysis is certainly valuable, the value is multiplied when a long-run, systematic, and entrenched process is implemented. The most successful win-loss programs have the following in common:
- Name an executive/corporate champion:This person is the face of the initiative for both internal and for customer-facing purposes. This goes back to creating accountability within the organization around the fact that data from the win-loss analysis is going to affect change.
- Not a witch hunt:Positioning a win-loss program for the good of the entire company is paramount. That said, incorporating metrics/data from win-loss surveys can be used in performance evaluations as part of the formal HR process.
- Establish a feedback loop:One of the most important components of a win-loss program is to ensure that if/when deficiencies are discovered, there is a formal process for the evaluation of the problem and defined initiatives/training to close the gap. Simply saying “Do it better” without the how or why minimizes the value of the program.
Benefits of a Win-Loss program
Establishing an independent win-loss program makes sense on so many levels:
- Create accountability
- Improve top-line business performance
- Provide training and growth opportunities for employees
People want to work for and work with organizations who are accountable and a win-loss program is just one tool in the shed. Remember, “What gets measured gets done.”
About Lake House Insights
At Lake House Insights, we don’t believe win-loss research should be reserved for the largest organizations. While we have plenty of experience building large, multi-country, multi-service line programs, we’re built for everyone.
Reach out and let’s start a conversation.
info@LakeHouseInsights.com
www.linkedin.com/company/lake-house-insights/
www.LakeHouseInsights.com
Frequently Asked Questions
What is Win-Loss Analysis?
Win-Loss Analysis is a research process that examines why a company wins or loses business opportunities. It combines customer feedback with sales data to identify patterns, competitive strengths, and areas for improvement.
Why should companies conduct Win-Loss Research?
Win-Loss Research provides an independent view of how customers perceive a company compared to its competitors. It can uncover reasons for lost opportunities that may not be accurately captured in a CRM and help organizations improve sales strategies, training, and overall performance.
How often should you conduct Win-Loss Analysis?
While a one-time analysis can provide valuable insights, an ongoing Win-Loss program is often more useful. Regular research allows companies to track changes in customer expectations, competitive positioning, and sales performance over time.