The Importance of Losing Deals
Salespeople never want to lose a Deal. And this is a big problem. By losing a deal I mean clicking on the big red LOST box in Pipedrive. Because people don't do this nearly as regularly as they should, they end up with a cluttered mind and a cluttered system. Which is bad for productivity. Bad for conversions and a negative for revenue.
Holding onto a lead for too long is among the most common 'errors' we see with Pipedrive. Right behind not using Activities correctly.
Not wanting to 'Lose' deals because there is still a chance they will convert, however minuscule, is the wrong approach. In fact, at Motii, under certain circumstances, we encourage clients to lose deals even if there is a good chance they will convert.
So when should you lose a deal?
When there is only a small chance that the deal will convert within your normal sales cycle. For example, if your sales cycle is three months long but your prospect has told you they will definitely buy but not until next year (six months away), then you should lose that deal. Once you lose the deal, you set a follow-up Activity for the appropriate time and forget about it until then.
You should also lose the deal the moment that a client rejects you. Don't hang onto it for one second more. Lose the deal and push the prospect into a reactivation campaign. Some sort of nurture/drip campaign that starts off with a friendly and familiar email and then moves along into an strong offer.
When it comes to losing deals, always err on the side of clicking the big red LOST button. This allows you to clean your pipeline, focus on those deals with the potential to bring revenue.
Losing deals is good for your reports. Having a bunch of deals in your pipeline that are never going to close with a win is bad for your reports and metrics. It distorts the very measures you rely on to make important marketing and personnel decisions.
It takes up time. And time equals money. There are all sorts of reasons leads should be disqualified but I here at Motii we are constantly amazed at the number of leads in pipelines that fall at the the first two hurdles: No need for the product/service. No budget for the product/service. These two crucial markers should be filters out at the top of the funnel. But bad salespeople make the same mistake over and over a again. they continue to work these 'dead;' leads instead of finding new leads that potentially do have the want/need/budget.
Good sales managers set up their reps for success by having them focus only on those deals that have the potential to bring revenue. And the they make sure that they are identifying leads who are: ready, looking and able. Ready to buy as in this sales cycle. Looking for solutions to their issue. Able to buy, as in they have the budget.
If they don't fit those criteria, then lose the deal, set an Activity to follow in three months, six months or whenever is appropriate and move onto the next, more likely prospect.