SALES MATH IS BS - MATH IS FACTS NOT OPINIONS
A sales leader discusses how traditional win rate calculations are fundamentally flawed because they rely on subjective definitions of what constitutes a 'loss.' The speaker argues that focusing on revenue growth and deal winnability is more productive than manipulating win rate metrics.
Summary
The speaker recounts a conversation with a sales leader who requested help improving win rates, defined traditionally as wins versus losses. The speaker challenges this metric by pointing out its fundamental flaw: while wins are clearly defined, losses are subjectively determined based on what deals the salesperson 'wanted to win.' This creates an easily manipulated metric where win rates can be artificially improved by simply reducing the number of deals classified as 'want to wins' rather than addressing underlying sales performance issues. The speaker argues that this approach misses the real objective, which is increasing revenue. Instead of focusing on win rate optimization, the discussion should center on why revenue isn't growing and why salespeople are working on deals that are either unwinnable or beyond their capability to win. The speaker advocates for a more strategic approach that focuses on identifying winnable deals and developing concrete plans to win them, concluding that while anyone can appear busy with sales activity, actual selling success requires more strategic thinking.
Key Insights
- The speaker argues that traditional win rate calculations are fundamentally flawed because while wins are clearly defined, losses depend entirely on subjective decisions about what deals were 'wanted to win'
- The speaker claims that win rates can be artificially improved by simply reducing the number of deals classified as 'want to wins' rather than actually improving sales performance
- The speaker contends that salespeople often work on deals that are either unwinnable or beyond their ability to win them, which undermines revenue growth
Topics
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