Sales CRM Terms

What is Chasing Lost Deals? (Explained With Examples)

What is Chasing Lost Deals? (Explained With Examples)

What is Chasing Lost Deals? (Explained With Examples)

11 okt. 2023

11 okt. 2023

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      What is Chasing Lost Deals? (Explained With Examples)


      What is Chasing Lost Deals? (Explained With Examples)

      Chasing Lost Deals is a strategy that businesses employ to try and recover sales opportunities that were previously lost. It involves reaching out to potential customers who have shown interest in the past but ultimately did not make a purchase. By re-engaging with these leads, businesses hope to turn them into paying customers

      1°) What is Chasing Lost Deals?

      Chasing Lost Deals refers to the proactive approach of pursuing potential customers who have previously shown interest but did not convert into sales. This strategy recognizes that not all leads are lost forever and that there is still a possibility to turn them into customers with the right approach.

      1.1 - Definition of Chasing Lost Deals

      Chasing Lost Deals can be defined as the process of actively pursuing potential customers who have shown interest in a product or service but have not made a purchase. It involves reaching out to these leads through various communication channels to understand their concerns, address any objections, and ultimately try to convert them into customers.

      1.2 - Advantages of Chasing Lost Deals

      There are several advantages to implementing a Chasing Lost Deals strategy:

      1. Increased conversion rates: By focusing on leads that have already shown interest, businesses have a greater chance of converting them into paying customers.

      2. Cost-effective: Chasing Lost Deals is often more cost-effective than acquiring new customers, as the initial interest has already been established.

      3. Customer retention: Successfully converting lost deals can lead to long-term customer relationships and potential referrals.

      4. Market insights: Engaging with lost deals can provide valuable insights into why potential customers did not convert, allowing businesses to improve their sales process.

      Implementing a Chasing Lost Deals strategy can significantly impact a company's bottom line. By focusing on leads that have already shown interest, businesses have a greater chance of converting them into paying customers. This targeted approach allows companies to allocate their resources more effectively, as they can concentrate on leads that have already expressed an interest in their products or services.

      Furthermore, Chasing Lost Deals is often more cost-effective than acquiring new customers. Since the initial interest has already been established, businesses can save on marketing and advertising costs that would typically be required to attract new leads. By leveraging existing leads, companies can maximize their return on investment and generate revenue from potential customers who may have slipped through the cracks.

      Another advantage of Chasing Lost Deals is the potential for customer retention. Successfully converting lost deals can lead to long-term customer relationships and potential referrals. By addressing any concerns or objections that prevented the initial conversion, businesses can build trust and loyalty with their customers. This can result in repeat purchases and positive word-of-mouth, further expanding the customer base.

      Engaging with lost deals also provides valuable market insights. By reaching out to potential customers who did not convert, businesses can gather feedback and understand why the leads chose not to make a purchase. This information can be used to improve the sales process, identify areas of improvement, and refine marketing strategies. By continuously learning from lost deals, companies can enhance their overall sales performance and increase their chances of converting future leads.

      1.3 - Disadvantages of Chasing Lost Deals

      While there are several advantages to Chasing Lost Deals, it is important to consider the potential disadvantages:

      • Time-consuming: Chasing Lost Deals requires significant time and effort to reach out to leads, understand their concerns, and persuade them to reconsider. Sales teams need to invest resources in nurturing these leads, which can divert their attention from other potential customers.

      • Limited success: Not all lost deals can be successfully converted into customers. Some leads may have moved on or found alternative solutions. Despite the best efforts, there will always be a percentage of lost deals that cannot be recovered.

      • Resource allocation: Focusing too much on lost deals may divert resources from acquiring new customers, potentially impacting overall business growth. It is essential to strike a balance between chasing lost deals and pursuing new leads to ensure a healthy sales pipeline.

      • Rejection: Engaging with lost deals can result in rejection or negative feedback, which may affect the morale of the sales team. It is crucial to provide support and motivation to the sales team to overcome any setbacks and maintain their enthusiasm for pursuing lost deals.

      Despite the potential challenges, Chasing Lost Deals can be a worthwhile strategy for businesses looking to maximize their sales opportunities. By understanding the advantages and disadvantages, companies can develop a tailored approach that suits their specific industry and target audience. With the right mindset, resources, and strategies in place, businesses can effectively chase lost deals and turn them into valuable customers.

      2°) Examples of Chasing Lost Deals

      2.1 - Example in a Startup Context

      Imagine a startup company that offers a software solution for small businesses. They have identified a list of potential customers who expressed interest in their product but did not proceed with a purchase. The startup decides to implement a Chasing Lost Deals strategy by sending personalized follow-up emails to these leads, offering additional information and addressing any concerns. Through persistent communication and tailored offers, the startup successfully converts a significant portion of the lost deals into paying customers.

      2.2 - Example in a Consulting Context

      In the consulting industry, a firm may have provided a proposal to a potential client, but the client decided to go with a competitor. Instead of accepting the lost deal, the consulting firm decides to chase it. They schedule a meeting with the client to understand their reasons for choosing the competitor, and then tailor a new proposal addressing the client's concerns. By showing commitment and willingness to accommodate the client's needs, the consulting firm successfully converts the lost deal into a long-term partnership.

      2.3 - Example in a Digital Marketing Agency Context

      A digital marketing agency receives inquiries from potential clients who are interested in their services but do not proceed with a contract. The agency implements a Chasing Lost Deals strategy by following up with these leads through phone calls or virtual meetings. They analyze the clients' needs and offer customized solutions that align with their business goals. By showcasing the agency's expertise and commitment to achieving results, they successfully convert the lost deals into valuable long-term clients.

      2.4 - Example with Analogies

      Chasing Lost Deals can be compared to a fisherman who patiently waits for a fish to bite. Just as a fisherman persists in casting the line multiple times in different spots, businesses need to persistently pursue lost deals by trying different approaches and addressing objections. Similarly, Chasing Lost Deals is like a marathon race, where businesses keep going despite initial setbacks, knowing that the finish line is still within reach.

      In conclusion, Chasing Lost Deals is a strategic approach that can yield significant benefits for businesses. By understanding the concept, advantages, and disadvantages, as well as reviewing practical examples, businesses can determine whether implementing this strategy aligns with their goals and resources. With persistence and tailored efforts, Chasing Lost Deals can lead to increased conversions, customer retention, and valuable market insights.

      Over de auteur

      Arnaud Belinga

      Breakcold Youtube Channel

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      Breakcold Youtube Channel

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      What is Data Segmentation? (Explained With Examples)

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      Sales CRM Terms

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      What is a Discovery Meeting? (Explained With Examples)

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      What is Door-to-Door Sales? (Explained With Examples)

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      What is a Drip Campaign? (Explained With Examples)
      What is a Drip Campaign? (Explained With Examples)

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      What is Elevator Pitch? (Explained With Examples)

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      What is Email Hygiene? (Explained With Examples)

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      What is Emotional Intelligence Selling? (Explained With Examples)
      What is Emotional Intelligence Selling? (Explained With Examples)

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      What is Engagement Marketing? (Explained With Examples)
      What is Engagement Marketing? (Explained With Examples)

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      What is Engagement Rate? (Explained With Examples)

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      What is Engagement Strategy? (Explained With Examples)

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      What is Feature-Benefit Selling? (Explained With Examples)

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      What is Gatekeeper Strategy? (Explained With Examples)

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      What is Growth Hacking? (Explained With Examples)

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      What is Holistic Selling? (Explained With Examples)

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      What is Ideal Customer Profile (ICP)? (Explained With Examples)
      What is Ideal Customer Profile (ICP)? (Explained With Examples)

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      What is Inbound Lead Generation? (Explained With Examples)

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      What is Inside Sales Representative? (Explained With Examples)

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      What is a Key Performance Indicator (KPI)? (Explained With Examples)

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