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First things first, this is not an objection handling exercise. This is not a technique to bring a deal back from the dead. Nor is this a suggestion to ask a lost deal for referrals. If a sales person has lost a deal they should accept the news and handle it with grace and dignity by thanking the prospect for their consideration.
While the deal might be dead in terms of revenue there is a massive value a lost prospect can bring to the table. A sales person should ask every lost deal for feedback. By the time a deal is lost a sales rep has put a considerable amount of time into the prospect. Why not at least get something in return? A lost prospect is a wealth of knowledge which can be the secret to success. One can learn why the prospect didn’t go with the product or service and now the rep can learn how to avoid those obstacles going forward. Statistically, one losses more deals than they win. There is actually more feedback and knowledge in lost deals simply because there are more them.
Dead deals can push up daisies. Here are some examples:
1) Over Sold: A sales person may learn from the prospect they were too pushy and aggressive which made the prospect uncomfortable.
2) Out Sold: A sales person may learn the rep at the competitor out sold them. Ask the prospect what the other rep did and ask for specifics.
3) No Desire: One may learn the prospect doesn’t want the product or service. It’s key to find out why the product or service didn’t make the prospect’s priority list. The rep can use the information going forward to help build desire and urgency.
4) Competition: If the prospect decided to go with a competitor, this is a fabulous opportunity for a rep to learn what the competitor is saying about their product or service. Going forward a rep can use this to their advantage. If the rep finds out their next deal is looking at the same competitor, tell the prospect what that competition is going to say before they can. This discredits the competition and allows one to give accurate info.
5) Reputation: The prospect might have heard not-so-great reviews about the product or service. The prospect might have found the product or service had no reputation which can also be scary. Street cred is important to prospects. The rep can start incorporating more case studies and offer references going forward.
So how is it done? While a lost prospect has the keys to a reps future success, it can be difficult to access the information. First the conversation should never happen over email. There are too many reasons to list why this shouldn’t be done over email, however mainly because one is not likely to get a reply. Once the a rep has the contact on the phone, the contact is likely to feel this will be an attempt to handle objections. The rep should disarm the prospect by acknowledging they understand the deal is dead. It’s also important to be transparent with the prospect and set proper expectations. This is a phone call a rep should chase just as hard as the rest of their pipeline as it holds the secret to their impending attainment. Here is a script that can be used:
“Bob, thank you for considering _______ (insert company name). I appreciate you’ve decided to go in a different direction. Since I’ve spent a great deal of time with you I’d like to learn from the experience. I’m going to ask for feedback as I find this is a great opportunity for me to improve. I will not be using this as an excuse to talk you out of your decision or handle objections. Would you be open to giving me feedback?”
Once the prospect has agreed, the rep’s questions can start from there. Do not punish the prospect for being honest. In other words, keep emotions out of it. Do not become defensive, combative or angry. One should also remember this is not a time to handle objections. The prospect agreed to provide feedback because they were told the rep would not try to handle their objections. The rep should not go back on their word.
If you don’t look for feedback, you’ll never improve. Keep doing the same thing you’ve been doing over and over. Maybe someday you’ll get a different result. In the meantime, the reps who embrace failure and seek feedback will send postcards from the achievers trip.
