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Lost Order Analysis

Your situation

Your company’s operations are running quite smoothly, you are happy with the number of orders you get, but you can’t manage any growth. Turnover and sales seem to always stall at approximately the same volume. You have made several attempts to figure out how to improve sales. For example, why don’t some quotes produce orders? But those types of questions have met with a great deal of resistance from your sales staff. They complain, point out how busy they were, and say that they would rather be working on the next quote for the next customer. And of course, think of the paperwork involved if you really want to get to the bottom of the matter. In this respect, your ERP system is no help at all and

improvement programs don’t make that much difference either. You have introduced a few over the course of time, but they’ve all been very time-consuming for your organization. Things are better for a while after each program, but nothing has really been a launching pad for more growth. All things considered, your company focuses on completing the orders you receive, solving bottlenecks in the production, and keeping your customers happy. Demand is evolving rapidly, so there is a lot of pressure to simply get the job done every day and any interest in growth fades into the background.

The solution

Working with Sofon will allow you to utilize information – not only from orders you have won, but from lost orders as well. It won’t involve any extra registration work. Analyzing lost orders is just as valuable, if not more so, than analyzing the orders you won. After all, if you know why customers don’t choose you, you can make changes. Precisely because quotes are not turning into orders means there is room for improvement and room for growth.

Sofon keeps the details from all versions of the quotes you have sent to all your customers. If you examine the versions of the lost orders closely and look for a common denominator, you can identify what went wrong. You can focus on any aspect you can think of. Perhaps you will discover that certain products are only ever ordered once. That could mean that there is something wrong with your aftersales. Perhaps your staff lack certain knowledge or a service-oriented attitude? Or does the same option keep appearing on lost orders? Should you continue to offer that option? Are there certain products that just don’t sell well? In that case, it might be sensible to see which options are missing from those articles. Or have you noticed that you lose the customer after sending the budget proposals when they see the quote for the actual price? That could mean you are too expensive and you should take a long, hard look at your price management. Of course, you can compare information from lost orders to categories of customers. Are you losing many orders from interesting customers or from many one-off customers with whom it’s not as important to build a customer relationship? You will need to respond to these different cases at different speeds. All this lost-order information is extremely valuable for implementing specific improvements. And you can grow if you can improve.

The advantages for you

  • You can achieve growth by introducing well-founded, specific improvements.
  • You can work proactively on customer satisfaction: you will have a greater chance of retaining your good customers and attracting new ones.
  • You can avoid losing future orders.
  • You can avoid investing in matters that do not offer you any benefits, such as developing new products, while the road to expansion lies in another area such as a better pricing policy.

This may also interest you

In addition to improving your lost-order analysis, you can introduce smart processes to your entire sales management too: lead management, opportunity management, pipeline management, territory management, activity management, contact management, reseller enablement, groups and campaign management, sales reporting and sales forecasting.