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Three facts that can change the way that you manage sales
Win rate in the B2B space is between 20% to 30%.
It means that 75% of your time is spent on lost opportunities. Some people call it the cost of doing business.
But it is not that complete truth. It’s less known that on average it takes 2x time to close lost vs won.
Assuming that you spend the same effort during opportunities whether they are closed lost or won, then you are spending 86% of your time on lost opportunities. In many cases likely to lose opportunities are just hanging out, but still they take time and focus.
Can you minimize the 86% to be more reasonable?
The simple way.
Find the average time to close won opportunities and challenge any opportunities that takes longer. This could potentially bring you down to 75% of your time spent on lost opportunities.
Can you do better?
Our data shows that it is possible to identify lost opportunities in a very early stage. In most cases it can be done not later than the end of the first quarter of the time it takes to close won opportunity. Which is actually 1/8 of the time that lost opportunities are closed.
How can it impact your time?
You’d close lost opportunities not later than 1/8 of the their typical time. Which will take the time spent on lost opportunities down to 43% from 86% today.
Would you like to see it in action with your data?