There are several options of how you can carry out Win-Lost Analysis of the pipeline - build the pipeline for closed leads, open leads or for all the leads. The report might be generated in the basis of the amount of leads or the sale of the leads. Let’s take a look at each of them.
Option 1 - closed leads, analysis by the amount
Using this filter we can detect at which status we loose most of the leads. Filter option “By amount” means that the shares in the pipeline will be calculated based on the number of leads that went through this or that status.
Let’s analyse the example pipeline on the screenshot below.
- Potential - for this status the number of leads in the pipeline is 712. It means that for the chosen period of time 712 leads were closed in total, as by default all the leads go through the first status of the pipeline. Even if you created the lead in “Closed - Won” status, it is understood that the lead went through all the previous statuses.
- Negotiations - 528 leads out of 712 reached the status “Negotiations”. It means that 184 leads went straight to “Closed - lost” from the status “Potential” and we lost these leads.
- Making decision - 526 leads out of 528 reached the status “Making decision” - so 2 leads were lost as from the status “Negotiations” there were transferred to the status “Closed - lost”.
- Negotiating terms of Agreement - 508 out of 526 leads reached this status, so between Making Decision and Negotiating terms of Agreement we lost 18 leads.
- Signing Agreement - 496 leads out of 508 reached this status, therefore 12 leads were lost between Negotiating terms of Agreement and Signing Agreement.
- Closed - Won - all the leads from the previous status - 496 - were successfully closed.
- Closed - Lost - 216 leads out of 712 leads were lost in the given period of time - 28% of the leads are lost.
Analysis of the example pipeline:
We can see that out of 712 leads, 70% are successfully closed and 30% are lost - let’s see why. The pipeline shows that the majority of the leads - 26% - are lost on the status “Potential”, as it seems like almost a third of the potential clients are not unterested in the services we provide. In case these are cold leads then it’s not a reason for concerns, otherwise it should be dealt with. 3% were lost between the statuses “Making decision” and “Negotiatins terms of Agreement”, which most likely means that sales staff failed to sell the service to the client. And only 1% of the leads was lost on the stage of signing the Agreement - so for 1% of the clients our terms of Agreement were unaccaptable. In general not so many leads are lost, though it wouldn’t hurt reconsidering work process on the first stages and perhaps rethink how the sales staff is working with the cold base of clients.
Important: If we click on the number of leads in each status, we will see the list of closed leads that went through the chosen status. For example, if we click on the number 526 in status “Making decision” we will see all the leads that previously were in status “Making decision”, but now all of them are in status “Closed - Won” or “Close - Lost”.
Option 2 - closed leads, analysis by sale
Let’s analyse the same pipeline built on the sale data. The report itself shows the same info, but in this case the shares are calculated based on the amount of money that we received from the clients.
- Potential - for this status we see sales budget of USD 17 million. It means that at the moment we have 712 closed leads with the total budget of $ 17 154 361. By default all the leads go through the first status of the pipeline and the share of it is 100%.
- Negotiations - USD 16.3 mln reached the status “Negotiations”, therefore around USD 1 mln went straight to “Closed - lost” from the status “Potential” and we lost these leads.
- Making decision - USD 16.2 mln reached this status, so almost all the leads from status “Negotiation” went further, and our losses between these two statuses are negligible.
- Negotiating terms of Agreement - USD 12.4 mln reached status “Negotiating terms od Agreement”, consequently USD 3.8 mln went straight from “Making decision” to “Closed-lost” and we lost those leads.
- Signing Agreement - USD 12.4 mln went from “Negotiating the terms of Agreement” to this status - we haven’t lost anything on this stage.
- Closed - Won - all the leads from the previous status - USD 12.4 mln - were successfully closed.
- Closed - Lost - USD 4.8 mln out of USD 17 mln were lost in the given period of time - about 30% of the leads were lost.
In the pipeline built on the sales budget we can see that we could have earned USD 17 mln. Our final income is USD 12.4 mln. Some of the leads were lost on the first stage, though it should be taken into account that on the first stage an approximate sales budget is indicated and for some leads it is not assigned at all. Major loss took place after Negotiations -> Making Decision -> Negotiating Terms of Agreement - this is a soft spot to think about.
Option 3 - active leads, analysis by number
With this filter we can build a pipeline on the leads not yet closed.
Let’s elaborate what each of the statuses mean:
- Potential - We have 381 leads in this status. It means that in total there are 295 active (open) leads. By default all the leads went through this status and its share is 100%.
- Negotiations - only 105 leads reached the status Negotiations, meaning that 276 leads were left in Potential status
- Making Decision - all the leads from status Negotiations - 105 - reached this status, not a single lead lost
- Negotiating terms of Agreement - 81 leads out of 105 reached this status, 24 leads are still on Making Decision stage.
- Signing Agreement - only 14 leads out of 81 reached this status, 67 are left in status “Negotiating terms of Agreement”.
Here we can see that too many leads are stuck in the first status “Potential”. It might be the case that some of the managers don’t have enough time to process all of them and they don’t move through the pipeline. There are also too many leads in status “Negotiating terms of Agreement” - only few of them went further.
As a result only 14 leads are in the last open status and basically only these leads will bring us profits. This is quite a low share of total open leads, so we need to investigate why leads get stuck on a certain stage.
Option 4 - active leads, analysis by sale
This report shows descibes the same type of leads though in this case shares of each status are calculated using the data on sales budget of the leads.
- Potential - We have USD 4.11 mln leads in this status. It means that the total sales budget of open leads is USD 4.11. By default all the leads went through this status and its share is 100%.
- Negotiations - only USD 1 mln leads reached the status Negotiations, meaning that leads on USD 3.11 mln were left in Potential status
- Making Decision - all the leads from status Negotiations - USD 1 mln - reached this status, not a single lead lost
- Negotiating terms of Agreement - leads on USD 134 thousand out of USD 1 mln reached this status, leaving USD 866 thousand on Making Decision stage.
- Signing Agreement - leads only for USD 86 thousand reached the last open status, USD 48 thousand are left in status “Negotiating terms of Agreement”.
It shows that the majority of funds is now in status “Potential”. Relatively high share of funds is on Making Decision stage, whereas only USD 86 thousand reached final open status. And these USD 86 thousand we could expect to earn in the near future.
Option 5 - all leads, analysis by number
The same types of reports are available for all the leads, i.e. for both open and closed leads.
- Potential - Here we can see total amount of leads that we have in amoCRM (open + closed) - in our case there are 1093 of them. By default it is considered that all the leads go through this initial status (even if you create a lead in status “Closed - Won”, so its share is 100%.
- Negotiations - 633 leads are in these status which leaves for the rest 460 only 2 options - either they went straigt from status “Potential” to status “Closed - Lost” and we lost those leads, or they are still in status “Potential”
- Making Decision - 631 leads reached this status and there are 2 leads that were lost after “Negotiations” status or are still there.
- Negotiating terms of Agreement - 589 leads are in this status, so there are 42 leads that either went from previous status to “Closed - Lost” and we lost them, or they are still in status “Making decision”.
- Signing Agreement - 510 leads reached status “Signing Agreement”, consequently the balance of 79 leads either went to status “Closed - Lost” or are still on the previous stage.
- Closed - Won - from total amount of 1093 leads 496 reached status “Closed - Won”. 14 leads either stayed in status “Signing Agreement”, or went to status “Closed - Lost”.
- Closed - Lost - 216 out of 1093 leads have been lost, which means that 20% of leads don’t bring us any profit.
This pipeline shows us that close to half of the leads are stuck in status “Potential”, or this is the status from which we loose the majority of leads - 42% of leads are lost on this stage. And this initial stage is the main problem of this account. For the rest of the statuses the shares are more or less the same, so management should take a closer look at the business processes carried out on the early stages.
The same report built in basis of sales budget of all the leads is also available.
Average lead life-cycle analysis
Average lifetime of a lead is one of the most important part of the Stats section. It shows how many days a lead spends in each of the statuses in the pipeline.
In our example average lifetime of a lead is 200 days, which break into the following periods:
- Potential status - we see that on average a lead spends 122 days in the first status - more than a half of its total lifetime
- Negotiations - average time a lead spends in this status is 38 days
- Making Decision - a lead spends on average 21 days in this status.
- Negotiating terms of Agreement - 19 days are spent by a lead in this status.
- Signing Agreement - and leads are closed in the same day they reach status “Signing Agreement.
Analysis of the life-cycle report:
In our example average lifetime of a lead is 200 days. It means that it takes a lead 200 days to go through all the statuses in the pipeline. Let’s see in what status a lead spends most of the time.
We can see that most of the time is spent on initial stages - 122 days, meaning that during these 122 days nobody works with the leads and they don’t bring any profit. This peiod of time is too long and it requires our immediate attention.
It also shows that 59 days are spent merely on convincing the client to consider buying our service. And even though the lead spends the shortest period of time in “Negotiating the Terms of Agreement”, still it takes 19 days to agree on all terms.
In general the figures are very pessimistic - the time spent in each status can be several times shorter provided that the whole process of working with the client is set efficiently.
The same report on the lead life cycle is available for active and closed leads separately.
Another important part of the Stats is sales forecast. Using this report you will have an estimate of how many leads you are likely to close in 60, 120 and 180 days and what the budget of these leads will be.
The forecast is based on the existing trends in your account - current number of leads in the account, how many of them were successfully closed and how many were lost, sales budget of these groups. This data is analyzed and the system calculates the forecast.
Let’s consider our example account:
- 60 days - in 60 days 89 leads are forecast to be successfully closed for the total budget of USD 814 582.
- 120 days - in 120 days 196 leads are planned to be won for the budget of USD 1.92 mln
- 180 days - 321 leads are planned to be successfully closed in 180 days which will bring us USD 3.31 mln.