Identifies and categorizes why potential sales deals were lost or did not close.
What it Measures ?
Why we lose deals.
Relevant StakeHolders
Sales Ops, CRM Analysts
Why it Matters ?
Provides insight into lost sales causes, improving strategy, objections handling, and training.
In-depth Use Case / Real-world Example
This KPI tracks patterns behind unsuccessful deals to improve future win rates. For example, a company selling industrial robotic arms may lose deals due to pricing, lack of certain features, or delayed delivery timelines. If 40 deals were lost last quarter and 25% were due to pricing and 35% due to missing technical features, that insight can guide pricing strategies or product development. In manufacturing, where decisions often involve technical evaluations and budget constraints, knowing precisely why deals fail helps improve product positioning, refine sales training, and sharpen competitive messaging. Capturing this data through CRMs after each lost deal and reviewing it periodically allows continuous process improvement.
Sample Formula
Survey or CRM Data Analysis on Lost Deals