Lead Qualification
Failure to disqualify poor quality leads. For example, leads that are in financial distress that result in failure to close or failure to pay.Opportunities
Spending significant resources on an opportunity that is low probability due to factors such as internal budget approvals.Product Knowledge
Mistakes in engaging the customer that make closing difficult. For example, slips that make it seem that you don't have much experience in the customer's industry.Proposal
A proposal that isn't as high quality as the competition resulting in loss of a deal. For example, a proposal that is rejected by the customer because it doesn't conform to an RFP.Objection Handling
Poor objection handling resulting in failure to close.Negotiation
A negotiation that fails to close a deal. For example, misreading customer motivation.Financial
Financial risks such as a price that is lower than your likely costs to fulfill your obligations to the customer.Customer Relationships
Customer churn due to factors such as competition or customer service issues.Resources
Losing top performing salespeople to a competitor who then attract your customers to competing products.Incentives
Low morale due to sales quotas and targets that are perceived as unfair.Sales Channels
Channel conflicts such as a sales team that ends up competing with value added resellers of their product.Economic
An economic downturn or recession that results in customers freezing new spending.Regulations & Taxes
New regulations or tax structures that result in declining sales. For example, introduction of a special tax for real estate purchases by foreigners.Customer Needs
Shifting customer needs and perceptions that result in less demand for your product. For example, a technology product that is initially hyped that enters a period of customer disillusionment.Competitive Risk
Competition is a risk at the opportunity, account and product level. For example, an innovative competitor can result in the perception that your product is out-of-date.| Overview: Sales Risk | ||
Type | ||
Definition (1) | The potential for sales failures. | |
Definition (2) | Potential events or conditions that result in the failure to meet a sales objective or goal. | |
Related Concepts | ||
