Let’s talk about win rate analysis… One of the critical metrics for B2B organisations.Valuable to every level of the business, from individual sales rep up to board level.
But with so much noise, conclusions can be hard to draw.Before we dive in, let’s cut to the chase. What does GOOD look like?
➡ High level 20-25% was the median for 2022 for all ACV in Saas (Benchmarkit), but every business varies. 40%+ is usually very good.
➡ A great approach is to assess how many “serious competitors” you have on your ICP deals (e.g. 2) and then aim to win more than your fair share (33%+)
➡ For Reps?
Well you just gotta get to the top of the leaderboard. Or use the approach above.Going a bit deeper 🕵♀️ The first question to ask is why are you measuring win-rate?1️⃣ Board reporting? It varies, but you’re probably talking about “competitive win rate” (excludes “no decision deals”). You might use the same to analyse product lines.2️⃣ Annual planning? You’ll need overall win rate or pipeline conversion. Good for making investment decisions into regions as well.3️⃣ Individual performance? Similarly you’re looking for total qualified opps closed-won . (Qualification is key!)Context here is also vital. The segment you target, ACV, sales cycle and other factors directly affect how you approach the calculation. With all this in mind, you should have a clearer idea on how you are going to measure win-rate:💰 Consistent ACV? then measuring by count or amount will yield similar results. If you have large $ outliers, it might be best to look at the win rate exclusive of those to hedge your bets when forecasting the next Q🚀 Short, high volume sales cycle? Then you can use weekly or monthly measurement to great effect.
Enterprise deals with 150 day sales cycle? Zoom out.😳 Suffering from a myriad of won/lost reasons? Group them into specific buckets and leave space for win/loss context in your CRM (Avoid multi-select !!)If you are relying on CRM data entirely, training the sales and adjacent roles is critical. Junk in junk out. Still got some budget? Tools like Gong or post-sale platforms like Clozd can be game changers for analysing unbiased anecdotal feedback. And in conjunction with a good win/loss cadence, it’s best to have accurate and up-to-date competitive intelligence so you can explain changes externally.Some insights for sales:❗ Ebsta and Pavilion reported significant outperformance for companies adopting MEDDPICC, the number was crazy high 💥❗ Applying win rate to your pipeline only works if you exclude the old stuff (e.g. +60 days) that is way over your ICP ideal’s sales cycle (SMB 30 days). Don’t kid yourself...!At 42 Problems, Inc. we believe perspective is everything when it comes to Win Rate Analysis. Being able to rapidly zoom in and out and test the effect of a large number of variables is helpful to get a sense of where deeper analysis or quick action might be needed!