Winning and Losing

For any business, being able to retain customers is one thing but understanding why you weren’t able to conquer the ones that didn’t make the purchase is just as important.

From my years of experience conducting market research, many companies seem to focus solely on business they do have (which is great) but forget about the sales they should have made but didn’t.

I have devised a simple and practical, yet effective, do-it-yourself market research strategy which any business can implement in-house. It’s called the Win/Loss Analysis and forms the first chapter in our series, Market Research Made Easy (watch this space!).

Understanding why customers didn’t choose you but someone else is central to this analysis. When you’re asking the ‘ones that got away’ as well as your usual customer base, you are essentially combining a competitor analysis, a customer satisfaction survey, your company’s own brand perception among your customers, and at the same time highlighting areas of the business which require much needed improvement.

How did the idea of the “win/loss analysis” originate?

  • After having worked with numerous clients over the years, we found ourselves talking to their customers about not only what worked well for them but also what didn’t work well for them.
  • We then translated this into asking lost sales (i.e. people who obtained quotes or made an enquiry but didn’t proceed with a purchase) why we didn’t win their business
  • The analysis from these two groups then presents significant opportunities for companies to improve operations at all levels.

Why ‘winning’ and ‘losing’?

  • It’s very simple: we needed to examine the differences between getting the sale (winning) and not getting the sale (losing).

What are some of the key outcomes of the analysis?

  • This process can pick up significant issues; for instance the importance of inventory control or a company’s ability to provide the right training to deliver their product or service, or any problems relating to the sales function such as quote turnaround times etc.
  • Companies can also identify and communicate the how and what of their competitive advantage and unique selling proposition (USP).
  • And, just as important, it can identify operational issues such as service protocols and make sure they match customers’ expectations.

What are some the things to consider when doing your own Win/Loss Analysis?

  • Don’t be afraid to ask your customers tough questions (e.g. what did we get wrong or what can we do better for you?).
  • Make sure your questionnaires are consistent; it is important to use the same questionnaire for your customers so you can compare the results.
  • You don’t have to ask many of your customers or lost sales; 10 in each group is usually enough.
  • Make sure the questions are relevant to your customers and you are prepared to make changes based on those findings; good or bad.
  • Let your customers know what changes you plan to implement in your company, product, or service offering in response to their answers. This can translate into more customer loyalty.
  • Don’t let your ego get in the way; it’s not about you … it’s about your company and, importantly, your customers.
  • Once the analysis is done, be sure to follow-up any changes and measure how effective those changes are with your customers. Do this over regular intervals.

Don’t wait.
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The 8 global consumer types and how to reach them

Increasing sales whilst tightening budgetary expenditure seems paradoxical, but it can be achieved by focussing marketing efforts on your key audiences.

Traditionally, consumers were categorised by demographics, skewing representation of their habits and lifestyle; however, marketers are now releasing that consumer habits and preferences are the most important factors influencing purchasing behaviour.

Evaluating personal attitudes (i.e. media consumption, buying behaviour, individual aspirations); Euromonitor International identified 8 global consumer types in a 2018 study:

 

Identifying key audience/s, their shopping motivators, major personal influences, habits, and purchase decision drivers when evaluating product innovation, sales and the marketing will enable retailers to maximise sales on a low budget.

Source: Euromonitor International

Learn about how you harness the power of consumer profiling. Don’t miss out.
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ASEAN Now

We have always been proponents for trade with our neighbours up north, the ASEAN Community, a name which was self-declared at the end of 2015. This help setup the ASEAN Economic Community which offers a framework for simplifying, standardising and facilitating economic trade activity between its member states.

As the world’s third-most populous economy (637 million) in 2016, after China and India, it presents massive opportunities for Australian businesses to engage and embrace this rapidly growing region. While only making up 3.4 percent of the world’s GDP, its average annual growth in GDP in 2016 was 4.6 percent, higher than the world’s average of 3.2 percent for the same period. The ASEAN Community also represents the third largest economy (US$2.5tn, 2016), only following China (US$11.2tn, 2016) and Japan (US$4.9tn, 2016).

 

business strategy Asia market research ASEAN graphic GDP

ASEAN – GDP 2016 – Research by Design.

 

ASEAN Now: Insights for Australian Businesses, Commonwealth of Australia 2017

 

Australia has much to gain from embracing the growth in the ASEAN Community:

  • Much closer in proximity than many of our other major trading partners, e.g. China, Japan, U.S.
  • Expanding cities
  • Rising demand from a rising middle-class
  • Increasing integration and interconnectivity through free trade agreements (FTAs)
  • Access to digital innovation

Australia’s lifestyle, products and services have a reputation of being high quality and are widely recognised. Businesses should take advantage of this reputation by tailoring an Australian solution to a Southeast Asian problem. We all mutually benefit.

ASEAN Now is a fantastic read for those who are not familiar with the region and a great top-up for those who are already familiar (click for PDF).

Learn about how you harness the power of our neighbours. Don’t miss out.
Contact us now for a free, no obligation, 2 hour consultation about your research needs.