TURNING LOST DEALS INTO FUTURE WINS
If you're in sales, you've lost a deal at some point, it’s inevitable. Even the best salespeople experience losses and that’s not always a bad thing. A lost deal can mean the timing wasn’t right, the fit wasn’t ideal or the prospect wasn’t truly ready. But the key isn’t just to accept the loss it’s to understand it.
Winning a deal puts a team on a high. You celebrate, build momentum and look for ways to replicate that success. But losing a deal? That’s where the real learning happens. Too many sales teams fail to spend enough time understanding why they lost. And without that insight, they miss out on an opportunity to improve future outcomes.
Why Sales Teams Should Be Reviewing Lost Deals
Every month, we recommend reviewing at least one lost deal. If there isn’t one in the past month, go further back. In a team, there’s bound to be one to examine. And if a deal hasn’t even made it to the final stage yet but is starting to feel shaky, that’s still worth reviewing.
Start with these questions:
Did we expect to lose this deal?
At what stage did we realise it might not close?
Were there warning signs we missed?
There’s a difference between expecting to win and winning, or expecting to lose and losing. If the loss came as a surprise, what was overlooked? If it was expected, what was the turning point? Work backwards from that moment to identify gaps in the process. This review can take 20 minutes or three hours it depends on how deep the analysis goes. But the less detail there is on why a deal was lost, the more likely it is that something was missed in qualification.
The Root of Objections and Conversion Challenges
When teams struggle with objections or conversion rates, the issue often isn’t at the closing stage it starts at the very beginning with qualification. If deals are consistently being lost, go back to how those prospects entered the funnel. Were they inbound or outbound? How many touchpoints were there? If winning deals typically take 11 touchpoints but a lost deal only had six, that’s a signal to dig deeper.
Learning from the Prospect’s Feedback
If feedback isn’t already being collected on lost deals, it needs to start now. And no, an email won’t always cut it, pick up the phone. A simple conversation like this can reveal key insights:
“I appreciate you letting me know. Obviously, I’m disappointed we couldn’t move forward, but would you mind sharing why you went with another option? What could we have done differently?”
Understanding their decision-making process helps refine the sales strategy. If they went with an incumbent provider, what drew them back? Was it just a pricing exercise, or was there a deeper reason they considered switching in the first place? That reason may still exist, meaning the door isn’t fully closed.
What Happens to Lost Deals?
For many sales teams, lost deals simply disappear into a CRM folder, never to be touched again. If there is a solid marketing engine, they may end up back in a general nurture sequence but that’s not enough. Instead, set a reminder for 12 weeks post-loss to check in. Ask how things are going, share a relevant insight, or invite them to an event.
Keeping in touch ensures the business remains front of mind. If their new provider drops the ball or they realise they made the wrong choice, the goal is to be the first company they think of. Staying connected also helps refine the sales approach. If multiple deals are lost to the same competitor, it’s time for a competitive analysis. Build battle cards, refine positioning, and ensure the whole team understands how to differentiate.
Making Lost Deal Reviews a Habit
Sales teams that review lost deals together are 60% more likely to improve their overall close rates. These reviews aren’t about blame, they’re about learning. Ask:
What could we have done differently?
What questions should we have asked earlier?
What insights can we apply to future deals?
Then, balance it out by reviewing a won deal as well. This keeps morale high and reinforces the actions that lead to success.
A No Today Isn’t a No Forever
Some of the best deals come 18 months or even two years after an initial loss. Timing changes, needs evolve, and prospects reconsider past decisions. Staying engaged, providing value, and following up strategically puts a business in a position to win when the time is right.
So don’t just log lost deals and move on. Analyse them. Learn from them. And most importantly, use them to sharpen the sales approach so that next time, the outcome is different.
Want to dive deeper?
We covered this topic in more detail on the Sell Like You podcast. Listen to the full episode HERE and start transforming lost deals into future wins!