In sales, a win/loss analysis is the process of determining why deals are ultimately won or lost. That goes without saying, but more specifically, a win/loss assessment is meant to compare a sales organization’s performance to that of an industry or competitors and find out why an outcome has occurred. This includes collecting data, including sales notes and customer feedback, analyzing that data, and sharing the results with the wider organization.
Win/loss analyzes can be effective. According to for Accenture, companies that execute them see a win rate of 18%. But if they don’t ask the right questions or ask them the wrong way, chances are they’ll collapse.
Andrew Peterson and Spencer Dent saw an opportunity to digitize and implicitly streamline win/loss analytics with clozdthe startup they co-founded in 2017. Clozd provides win/loss insights based on feedback from recent sales prospects, focusing on the actions a company can take to increase its profit rates.
In confirmation of that approach, Greycroft led a $52 million Series A investment in Clozd that closed today, with participation from Madrona Venture Group and Album VC. It brings the company’s total money raised to $56.2 million, Peterson and Dent said, with the bulk of it going to be spent on platform development.
“This round is kind of like a coming-out party for us,” Peterson told gotechbusiness.com. “Clozd has been quietly helping companies uncover the truth about why they win and lose. This partnership with Greycroft and Madrona demonstrates how important this issue is to solve, and that Clozd is positioned as [a] leader and innovator for win/loss analysis.”
Peterson and Dent met as colleagues at Qualtrics. Dent previously served as a case team leader at Bain & Company and before that, General Manager at Summit Financial Marketing consultancy.
“Many leaders work from assumptions and anecdotes about why they win and lose, rather than data. Other leaders may fear what they will learn and make win/lose information widely available in their organizations. So instead of addressing these issues directly, they may shy away from the real world,” Peterson and Dent said in an email interview. “Early 2017, [we] became convinced that numerous business solution providers, such as Qualtrics, were in dire need of better win/loss information and believed this to be a huge market opportunity. So, despite the huge opportunity cost of exiting IPO-bound Qualtrics, [we] walked away from executive positions at Utah’s hottest tech company to start Clozd in Spencer’s basement.
Clozd integrates with Customer Relationship Management (CRM) software to check for a “closed” opportunity. The platform then sends interviews and surveys about the deal to the involved reps and buyers. Clozd then synthesizes the responses, provides insights into why the gain or loss occurred, and shares it with stakeholders across the organization.
In addition to software, Clozd also provides consulting services for tasks such as designing win-loss analysis programs, conducting buyer interviews, conducting surveys, and developing summary reports.
“Clozd offers direct, out-of-the-box integration with Salesforce Sales Cloud and Slack and an automated quantitative survey module for triggering win/loss surveys for recent prospects. Win-rate monitoring enables our customers to track their sales win rate in real time,” said Peterson and Dent. “CEOs and executive teams are regularly asked by their boards why they are winning or losing deals with key competitors. Historically, most executive teams have provided anecdotal answers to those kinds of questions. Clozd gives them… data-driven insights that lead to a much more productive dialogue in board meetings.”
The question is whether platforms like Clozd can convince skeptical organizations to embrace win/loss reviews. In a 2019 reportAccenture found that less than half of companies perform them.
If Clozd’s growth is any indication, chances are they can. Despite competition from consulting firms such as Primary Intelligence, DoubleCheck Research and Anova Consulting Group, the startup currently has more than 175 business-to-business clients and a 129% year-over-year revenue growth in 2021.
“We have been profitable every year in our history and have had positive cash flow,” said Peterson and Dent. “Our gross margin in 2021 was 75% and unlike many tech startups, we ended 2021 profitably and positively in cash flow.”
Peterson and Dent said the plan for the near future is to introduce localization and new integrations with CRMs, business intelligence tools and messaging apps. Moving on, Clozd could get natural language processing features for processing feedback from customer prospects, the pair said, as well as analytics that correlate data about profit or loss (e.g., deal size, customer segment, product and industry) with results (e.g., gains or losses). to calculate the potential impact if companies changed their strategies.
“The pandemic has exacerbated the need for win/loss analysis. In any downturn, it will become even more important for companies to maximize every at bat they have in the sales process. As sales pipelines dried up during the pandemic, companies realized more than ever that they need to be very deliberate and proactive in monitoring and improving their sales profit rate,” said Peterson and Dent. “Win/Loss analysis empowers product teams, sales, and product marketing leaders to understand why deals are really won and lost, and which aspects of product development will really impact the company’s ability to win more deals.”