With this article I run the risk of not getting many readers. With articles, I have found the most important aspect is the title, and this title may be more confusing than attractive.
Clearing It Up
I am a very big proponent of deal indicators. I have a lot of saying around deal indicators, like, “don’t be confused by the customer’s words, judge them by their actions”, and “deal with it before it deals with you.” There are more, but as a teacher I try as hard as I can to reduce things to an easier bit size. No decision deals or sales are opportunities that don’t close. Now, this is not a very ground breaking sentence, but to explain it better a “no decision” deal is a deal that no one gets.
Picture this… you are in a deal with competition and at the end of the process the prospective client tells you and the competition that they are not going to do business with either of you. That’s what I mean by no decision. When a no decision event happens the customer typically gives one of a list of reasons that sounds something like this:
- This is not a good time…
- We don’t have any budget…
- There are other projects that need our attention…
- I can’t get executive buy in…
In a deal when a combination of no one winning the deal and a vague, kind of non-material reason no one got the deal you have a key indication that the reason to invest in your offering is not known by the customer. I hope you get that because a no decision deal is a very powerful indication that you are not teaching your customers to buy from you. If you can calculate the number of deals that no one does business with you or your competition and multiple those deals to the deals you win or lose to competition you will have the ability to create a “no decision” percentage.
No Decision Percentage
Here is a chart to help see if you are teaching your customer to buy from you.
- 0% – 15% – You are teach well! Keep it up!
- 16% – 45% – You are ok – To improve you have to create tools to help your reps sell on the real value of your offering.
- 46% – 100% – Not so good – This is a good indication that your sales team has no idea what the real value of your offering is.
Here is what I have found in helping companies figure out their no decision percentage, most companies fall into the last percentage of 46% – 100%. Now don’t panic, the great news is each of those companies are making money and there are usually one or two sales people (always at the top) that have figure out how to make sure they aren’t in no decision deals. The high percentage should not be an indication of failure but rather a place to focus and improve because like anything in sales if you up your percentage (even just a little) you can greatly improve the bottom line.
Want to know more? Buy My Books!
To buy the book – The Argument to Automate – How Innovation Can INSPIRE Not Fire – click here to buy
(Also) To get your copy of The 8 Pitfalls of Accounts Payable Automation – click here to buy
How about a children’s book? The Princess and the Paper – click here to buy
About The Author:
Christopher Elmore has written 8 books, countless articles, lectures at UNC – Charlotte and travels around the country speaking on the topics of startup success, sales, presentation skills, change, entrepreneurship, accounts payable and payment automation. Having deep startup and entrepreneurial experience, Christopher was one of the six people who started AvidXchange in 2000 and continues to work in the business today. If you hire Christopher to speak or teach at your company or event… you won’t be sorry! Request a media kit or contact us for more information