Arkaro Insights
Arkaro Insights is a podcast series produced by Arkaro, where we help B2B executives deliver better results with the latest ideas in change and innovation for your organisation.
About Arkaro
Arkaro is a B2B consultancy specialising in Strategy, Innovation Process, Product Management, Commercial Excellence & Business Development, and Integrated Business Management. With industry expertise across Agriculture, Food, and Chemicals, Arkaro's team combines practical business experience with formal consultancy training to deliver impactful solutions.
You may have the ability to lead these transformations with your team, but time constraints can often be a challenge. Arkaro takes a collaborative 'do it with you' approach, working closely with clients to leave behind sustainable, value-generating solutions—not just a slide deck.
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Arkaro Insights
Beyond Sales Intelligence: How Win-Loss Analysis Drives Cross-Functional Excellence (AI voices Arkaro content)
Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery.
Read the original article here: Beyond Sales Intelligence: How Win-Loss Analysis Drives Cross Functional Excellence
Every B2B leader believes they understand why they win or lose deals. But what if that understanding is fundamentally flawed? Our deep dive into win-loss analysis reveals a startling truth: 85% of internal CRM data about lost deals is completely wrong. This isn't just a minor discrepancy—it's a critical intelligence gap costing you significant opportunities.
Sales teams misidentify the true reasons for deal outcomes over 60% of the time and tag the wrong competitor 65% of the time. This flawed foundation creates a devastating ripple effect, undermining product development priorities, misdirecting marketing investments, and weakening competitive positioning. When your strategic decisions are built on incorrect data, how reliable can those decisions truly be?
Leading organizations have transformed their approach to win-loss analysis, evolving it from a simple sales diagnostic tool into a comprehensive business intelligence system that drives excellence across commercial, product, innovation, and strategy functions. The results are remarkable—companies implementing these approaches report up to 50% improvement in win rates, with 84% of established programs seeing consistent increases. The "Jobs to be Done" framework reveals deeper customer motivations, moving beyond features and pricing to understand what progress customers are truly seeking to make in their businesses.
Perhaps most crucially, external perspective is essential for accurate insights. Buyers tell internal teams the truth only 40% of the time, creating an intelligence barrier no amount of internal skill can overcome. Companies using third-party providers are 38% more likely to achieve significant win rate improvements and twice as likely to be satisfied with the quality of their feedback.
With only 3% of companies scoring in the "innovation ready" zone in 2024 (down from 20% in 2022), the urgency to evolve your approach is profound. What crucial intelligence is currently hiding in your won and lost deals, and how might uncovering it transform your competitive position and future growth trajectory?
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Welcome to the Arkaro Insights Podcast. We're here to help B2B executives like you deliver better results using the latest ideas and change and innovation for your organization. Today we're taking a really deep dive into a topic many folks assume they've you know, got covered, but the data it consistently reveals a pretty startling blind spot win-loss analysis. Now you might feel, maybe intuitively, that you know why you win or lose deals, but here's where it gets well, really eye-opening. The research strongly suggests that intuition. It might be fundamentally wrong and that can be costing you some significant opportunities. We gathered some honestly fascinating insights from recent research and they highlight a critical intelligence gap in B2B. So our mission today is to unpack these findings, maybe challenge some of those long-held assumptions and show you how evolving your approach to win-loss analysis can drive not just small improvements but real cross-functional excellence and sustainable competitive advantage in your whole organization.
Speaker 2:Exactly, and what's fascinating here, I think, is that we're moving way beyond thinking of win-loss as just a sales diagnostic tool. We'll explore how leading organizations are actually transforming this, turning it into a comprehensive business intelligence system, and this raises a really important, maybe even uncomfortable, question for you to consider If your strategic decisions are currently built on fundamentally flawed internal beta, well, how reliable can those decisions truly be?
Speaker 1:Okay, let's unpack that startling fact that came up in our sources. An astonishing 85% of internal CRM data about lost deals is fundamentally wrong. 85%, that's not just a minor inaccuracy, is it? That's a well, a gaping hole in your intelligence.
Speaker 2:It really is.
Speaker 1:So if your entire product roadmap, maybe your marketing budget, is being decided on insights that are potentially 85% incorrect, yeah. We're not just talking about minor missteps, right?
Speaker 2:Not at all.
Speaker 1:We could be talking about building the wrong product for the wrong market. I mean, that's a fundamental misallocation of resources at a staggering scale.
Speaker 2:Precisely, and this isn't just about missing sales opportunities, though that's definitely a direct consequence. The research consistently shows that sales teams they're incorrect about the true reasons for deal outcomes more than 60% of the time 60% wow. And they tag the wrong competitor a staggering 65% of the time. Okay, so if we connect this to the bigger picture, this unreliable data creates this devastating ripple effect. It undermines product development priorities because you're building features based on wrong assumptions about market demand.
Speaker 1:Right Makes sense.
Speaker 2:It misdirects marketing investments because your campaigns are maybe targeting the wrong pain points or the wrong competitors, and ultimately it weakens your competitive positioning across entire markets. This flawed foundation leads to serious fundamental design flaws in your overall business strategy.
Speaker 1:That is, yeah, that's a truly concerning reality for any B2B leader. If our internal compass is that far off, where do you even begin to find, like the true north? What's the fundamental shift in a mindset or approach that the leading organizations have embraced to you know, to overcome this inherent bias?
Speaker 2:Well that's really the core of the evolution we're seeing. The leading B2B organizations now view win-loss analysis not just as a departmental thing. They see it as a comprehensive business intelligence tool, something that drives excellence across four critical functions, not just sales, and this isn't optional anymore. It's really become a strategic imperative for staying competitive and truly understanding your market.
Speaker 1:Okay, let's break down these four critical functions. Then, first up, commercial excellence. The data here seems pretty compelling Companies reporting substantial increases in revenue, win rates. Those win rate improvements, they're really remarkable, they are. But let's be real, achieving that kind of uplift isn't easy. What's the single most common, say bottleneck or internal resistance you've seen in organizations trying to get there.
Speaker 2:That's an excellent question because the impact it is indeed substantial. It's measurable. Companies implementing these comprehensive win-loss approaches they report 15% to 30% increases in revenue and up to 50% improvement in win rates 50%.
Speaker 2:Yeah, and, crucially, 63% of companies report win rate increases. That rises to an impressive 84% for programs established over two years, so it builds over time. The bottleneck, though it, often comes from a lack of consistent, actionable insights and a siloed approach to applying them. Organizations might see the data, but they struggle to translate it into systematic changes across, say, sales processes or their value proposition.
Speaker 1:Right. So the insights need to be really deeply embedded, not just reported.
Speaker 2:OK.
Speaker 1:Next, product management. How does this kind of deep win-loss intelligence genuinely feed into product roadmaps and development cycles, moving beyond just simple assumptions about what customers want?
Speaker 2:Yeah, for product management, it's really about moving beyond assumptions to well undeniable market reality. This intelligence reveals which features truly influence purchase decisions, versus those that are just, you know, nice to haves, or maybe perceived necessities that aren't actually driving choice. Customer feedback gives you direct, unfiltered insight into the real world, strengths and weaknesses, both of your product range and, critically, those of your competitors. And, maybe most powerfully, it flags those underserved areas, places where customers are struggling to find adequate solutions, and these become direct triggers for innovation, pointing product teams exactly where to focus their efforts for maximum impact.
Speaker 1:This sounds like it directly impacts innovation strategy, then. But how does this deeper intelligence truly unlock like completely new ideas, rather than just, you know, iterating on existing products or features? What's the mechanism for that breakthrough?
Speaker 2:That's precisely it. It's about understanding the fundamental progress customers are trying to make through their purchasing decisions, not just their stated requirements or what they think they need this deeper insight into customer aspirations. It unlocks innovation opportunities that your competitors they just cannot see because they're likely still focused on superficial future sets. By identifying these truly unmet needs, you lay the foundation for breakthrough solutions, solutions that can redefine categories, not just incrementally improve them.
Speaker 1:Got it Okay? Finally, business strategy. Our sources suggest win-loss programs now command significant executive attention. That suggests they're far more than just an operational concern. What's fundamentally shifted? What's driven this sea level visibility?
Speaker 2:Absolutely the perception and the importance. They've shifted dramatically because the stakes are just higher than ever. Our research shows that 33% of these programs now have full sea level visibility and another 37 percent have significant visibility. So that's a huge chunk getting top level eyes on it.
Speaker 2:Yeah, that's substantial, and it's not just a fair weather tool either. Get this Forty percent of companies indicate that current economic conditions have actually increased its value and importance. This means win-loss. Intelligence is transforming how organizations approach well everything From market entry strategies to competitive responses and how they design and implement their overall business strategy. It's become a core input for top-level decision-making, moving from you know, a tactical tool to a strategic weapon.
Speaker 1:Okay. When I hear cross-functional revolution, my immediate thought is OK, that's easier said than done. What specifically about win-loss intelligence makes it uniquely capable of driving that kind of holistic organizational change and breaking down those notoriously difficult silos?
Speaker 2:Right, and that's where the real magic happens. Potentially Win-loss analysis, especially when it's based on unbiased external data, provides a single source of truth about the market Companies treating win-loss analysis as this cross-functional capability, they are 53% more likely to report a strong return on their investment 53%.
Speaker 2:This approach creates organizational alignment Because when everyone is working from the same foundation of deep buyer insights, magic truly happens. You see product teams building features that genuinely matter to customers. Marketing nails the messaging because they understand buyer psychology. And sales teams they can sell more effectively because they understand the true value propositions that resonate.
Speaker 1:So sharing this data isn't just like good practice, it's actually transformational. It sounds like it fosters a culture of collective learning rather than just informing individual departments in isolation.
Speaker 2:Precisely. It's about empowering the entire organization, and the data supports this 68% of companies distributing win-loss data to the majority of their employees report increased win rates.
Speaker 1:Why two-thirds?
Speaker 2:Yeah, this isn't simply about information sharing. It's about creating organizational cultures that systematically learn from market feedback and adapt accordingly. It really transforms how an organization thinks and operates, from the C-suite all the way down to every team member.
Speaker 1:OK, let's shift gears slightly. This sounds like a really game changing methodology. Our sources introduce the jobs to be done or JTBD framework. How does this fundamentally differ from, say, traditional win-loss analysis, and why is it so crucial for getting to that deeper level of customer intelligence we've been talking about?
Speaker 2:Right, jtbd. Traditional analysis typically asks why customers made a specific choice, often focusing on things like features, pricing or, you know, immediate pain points, jobs to be done or JTBD. It explores more fundamental question what progress were customers seeking to make in their lives or in their businesses, and how did different solutions either enable or hinder that progress? As Christensen and his co-authors noted, product developers often focus too much on building customer profiles, but to create offerings people truly want, firms need to home in on the job the customer is trying to get done.
Speaker 1:That job itself.
Speaker 2:Exactly this distinction is crucial because it reveals decision criteria. Customers might not even explicitly articulate themselves, but these criteria fundamentally drive their choices.
Speaker 1:Okay, can you give us an example, just to really bring that distinction to life?
Speaker 2:Certainly, let's consider two manufacturers evaluating different solutions. Both might cite cost optimization as their reason for selecting a competitor.
Speaker 1:Okay, pretty standard reason.
Speaker 2:Right. Traditional analysis might simply focus on competitive pricing strategies, suggesting you know you need to lower your price. But a JTBD analysis? It might reveal something far more nuanced. It might show that one manufacturer actually seeks operational efficiency improvements to reduce waste, streamlined processes that's their job While the other needs to maintain margins under increasing regulatory pressure from, say, a new compliance standard that's their job.
Speaker 1:Completely different context.
Speaker 2:Fundamentally different jobs, both related to cost, but requiring different solutions and value propositions. Jtbd clarifies which customer priorities are most important, yet maybe underserved. It points directly to the best growth opportunities, rather than just superficial adjustments like price.
Speaker 1:That's a powerful distinction. Yeah, moving beyond just the surface level reasons, okay, now, if win-loss analysis is so critical after such deep insights, why can't companies just do it internally? Our sources point to a fundamental limitation that makes internal efforts well insufficient, even for the most well-intentioned teams. What's the core issue there?
Speaker 2:This is a crucial insight and one that, frankly, many organizations overlook or maybe underestimate. The fundamental limitation isn't necessarily about internal capability, though that can be a factor. It's more of a structural issue. Buyers tell internal teams the truth only about 40% of the time.
Speaker 1:Only 40%.
Speaker 2:Yes, this candor gap. Combined with the systematic internal data quality issues we talked about earlier, the 85% error rate, it creates an almost insurmountable intelligence barrier, one that no amount of internal skill can fully overcome. Internal approaches simply face barriers, like buyers maybe not wanting to burn bridges or feeling uncomfortable giving frank, competitive assessments directly to the vendor.
Speaker 1:Yeah, that makes sense.
Speaker 2:An external perspective can eliminate those barriers entirely.
Speaker 1:So an external perspective isn't just a luxury or nice to have. It's actually a necessity for getting truly accurate, actionable insights. Why are those results so significantly better with a third party involved?
Speaker 2:It absolutely is a necessity for accuracy. External providers create a kind of safe space. Prospects feel more comfortable sharing sensitive decision criteria, honest competitive assessments, maybe criticisms about the process, things they would probably never reveal directly to a vendor they just rejected Right and beyond candor. External providers bring specialized expertise, things like professional interview skills, advanced methodologies, like jobs to be done which many internal teams just don't have. They also leverage tools like AI-powered tools for transcription and analysis, which dramatically increases efficiency and depth. Plus, they bring invaluable cross-industry intelligence, offering perspective on where your performance stands relative to best-in-class approaches across various markets. And, crucially, I think, external findings are often more readily accepted across functions because they eliminate those defensive reactions and internal political friction. That really aids Organizational change management.
Speaker 1:Okay, and the results, the actual results of using an external provider are truly significant. Right, the benefits go beyond just better data. They translate into tangible business outcomes.
Speaker 2:Oh, they are. Indeed. The quantified advantages are substantial. Companies using third-party providers are more than twice as likely to be satisfied with the quality and depth of their win-loss feedback. That's actually 70% satisfaction versus just 34% for internal programs, a 121% increase in satisfaction.
Speaker 1:Wow, that's a huge difference.
Speaker 2:It is. Furthermore, these companies are 38% more likely to achieve win rate improvements of 10% or more compared to those managing programs internally, and 36% more likely to see a significant return on their overall investment. These are not marginal gains. They demonstrate a clear competitive advantage.
Speaker 1:Okay. So our sources emphasize that the highest performing win-loss programs. They don't operate in a vacuum. They talk about an integration imperative. What does this mean for achieving truly transformational impact, and what kind of integration are we actually talking about here?
Speaker 2:It means recognizing that win-loss data is most powerful when it's combined with other forms of market intelligence, particularly competitive intelligence or CI. Our sources show that 67% of win-loss programs are already managed alongside competitive intelligence efforts. So many are seeing the connection, but the truly transformative impact that comes when these are fully integrated. Teams with fully integrated win-loss and competitive intelligence programs are actually twice as likely to report transformational impact. That's 12% for integrated programs versus just 2% for non-integrated ones 12 versus 2%.
Speaker 1:That's significant.
Speaker 2:Right. This integration creates comprehensive market intelligence, something that truly informs strategic decisions across the entire organization, rather than providing, you know, isolated insights for just a few functions.
Speaker 1:Okay, so what does this all mean for B2B leaders, For you listening, trying to navigate today's complex markets? Our sources suggest the question isn't whether to implement win-loss analysis anymore, but how to do it effectively and maybe with some urgency.
Speaker 2:Exactly. The market has pretty much answered that it's a competitive necessity. You see that, with 44% of companies now outsourcing their win-loss programs, and this growing adoption connects directly to a really stark finding from recent BCG research. Get this Just 3% of companies scored in the innovation ready zone in 2024. That's a huge drop from 20% back in 2022.
Speaker 1:Only 3% Wow.
Speaker 2:Yeah, many are effectively zombie innovation organizations lacking strategic direction, maybe pushing projects without a clear purpose or market validation. The urgency is profound.
Speaker 1:And this deep dive into win-loss. This approach can actually bridge that gap, help companies move out of that zombie state and truly innovate.
Speaker 2:Yes, absolutely Win-loss analysis, especially when it's executed properly through things like the jobs-to-be-done methodology and using an external perspective. It provides the crucial customer intelligence needed to focus innovation efforts on what customers actually value. It cuts through the noise, provides a clear strategic direction for innovation, ensures that resources are allocated to developing solutions that genuinely meet unmet needs and drive market success. It's really the antidote to aimless innovation.
Speaker 1:Okay, so our sources outline a unique approach for those looking to leverage these insights effectively. Okay, so our sources outline a unique approach for those looking to leverage these insights effectively. How do leading organizations, maybe like those partnering with Arkaro, address these challenges we've been discussing? How do you effectively turn insights into actual capabilities?
Speaker 2:Well, our approach recognizes that critical necessity of external objectivity and expertise for the intelligence gathering part. That's foundational. So we're the ones who conduct the unbiased customer interviews, the competitive analysis, and rigorously apply the jobs to be done methodology to deliver that deep, unbiased intelligence your organization needs. But, as you said, that's just the beginning, because a report, well, it's only as good as its implementation right, Wait insights without action.
Speaker 2:Exactly so. The deeper value lies in translating that intelligence into actual organizational capabilities or across all those critical functions we talked about commercial excellence, product management, innovation and business strategy. Okay, this is where our collaborative do-it-with-you approach becomes essential. We work alongside your teams to implement the insights through systematic capability building. For example, if win-loss reveals clear innovation opportunities, we help your product teams develop the processes to consistently identify and pursue that customer-driven innovation. If the insights expose competitive positioning gaps, we collaborate with your marketing teams to build sustainable competitive intelligence capabilities. We don't just coach from the sidelines. We really get on the pitch with you To build sustainable, value-generating capabilities that stick and evolve with your market.
Speaker 1:So it sounds like it's really about building long-term competitive advantage, not just delivering a one-off report or project.
Speaker 2:Precisely In today's dynamic B2B environment, superior customer intelligence is, I believe, the fundamental foundation for sustained competitive advantage. It ensures organizations learn fastest from both their successes and, just as importantly, their failures, adapting and outperforming those that rely only on intuition or, as we've seen, potentially flawed internal perspectives alone.
Speaker 1:So what's the one thing you should take away from this duck dive? Today, it seems it's not just about collecting data. It's about acknowledging the deep potential flaws in your current data, embracing external perspectives for clarity and creating an organizational culture that systematically learns and adapts from every single customer interaction win or lose, lose. So the question for you is what crucial intelligence is currently hiding in your won and lost deals and how might uncovering it with precision transform your competitive position and your future growth trajectory? That brings us to the end of another insightful deep dive. We really hope this exploration of win-loss analysis has sparked some new ideas for how you can sharpen your competitive positioning and drive that cross-functional excellence within your organization. To learn more about how Orcaro can help your organization unlock these critical insights and build lasting capabilities, you can visit us at Arkaro that's arkaro. com or find us on LinkedIn and if you'd like a free consultation, you can email Mark Blackwell directly at mark at Arkaro arcarocom. Thank you so much for listening to the Arkaro Insights Podcast.
