As sales managers, we're no strangers to the conversation. One of your sales reps passionately pitches why they should pursue a particular opportunity, citing that it's "a big deal" or "right in our power swing." Sometimes, with a bit of honesty, they might add, "I really need to win this." These are reasons, certainly. But what do they truly signify for your business? What's the concrete business value of this deal? And, just as importantly, what's the business risk involved?
Understanding the Cost of Pursuit
A member of our Sandler team recently spoke with the Chief Sales Officer (CSO) of a potential client. She shared a powerful insight: "Every opportunity we choose to pursue costs us $40,000—whether we win or lose." This figure might vary for different organizations, but the cost remains significant, especially in enterprise deals. For this CSO, the stakes were high: “If you can help me ensure that we pursue the deals we’re most likely to win, and if you can provide insights on whether we should stay in or exit a pursuit early, I’m all ears."
This insight underscores the financial impact of chasing enterprise-level accounts. But beyond the financial costs, consider the human capital involved. Engaging in a high-stakes pursuit requires time, skills, and focus from your team. When your best people are deeply involved in one complex deal, they’re unavailable for other valuable initiatives. This makes it essential to zero in on high-probability deals and also to recognize when it's time to step back.
Why Profile Alignment Matters
Selecting the right deals means choosing those that align closely with your organization’s core strengths. These “profile deals” are those where your team has the best chance of delivering excellent results, achieving healthy profit margins, and securing strong client satisfaction. The cost of chasing poorly aligned deals is high, not only financially but also in terms of wasted resources that could be applied elsewhere. When you decide to exit a deal early, you free up resources for more promising pursuits.
Accelerate or Exit: The Key to Strategic Decision-Making
When deciding on a pursuit, there should be no ambiguity. Accelerate the pursuit or exit it—these are the only two viable choices. But how can you know which to choose?
The foundation of this decision-making process starts with having a clear understanding of:
Your organization's core competencies
What an aligned opportunity looks like
The attributes of your ideal client profile
With clarity on these points, your next step is a structured go/no-go process that evaluates each enterprise opportunity’s viability.
Breaking Down the Opportunity: Three Critical Areas
To assess any enterprise-level pursuit, consider three main categories:
Client Issues – Do you have multi-level relationships within the account? Do you clearly understand the client's needs and their current partners?
Selling Team Issues – How well does your team know the competitors involved and their relationships with the client? Are there internal champions within the prospect who advocate for your solution?
Financing/Contract Issues – Are you clear on potential contractual requirements, warranties, or penalties? Are there financial risks or commitments that could affect profitability?
In a team forum, review each of these areas, focusing on the stability or risk associated with each. For every identified risk, create practical action plans to reduce uncertainty as quickly as possible. Addressing these concerns early on is critical—ignoring them only delays potential fallout.
Risk Mitigation: Driving Stability or Enabling an Informed Exit
The outcome of your risk-mitigation strategy, often involving direct client discussions, will either solidify your stability in the deal or clarify unacceptable risks. Of course, every significant deal will entail some risk. But what separates successful pursuits from costly failures is addressing, understanding, and mitigating these risks early on. Acceptable risks are those you’ve evaluated and deemed manageable—not those you choose to overlook.
Through a pragmatic risk assessment process, you’ll achieve one of three outcomes:
Increased probability of winning, knowing you’ve managed risks.
Clarity that the deal should not be pursued, saving time and resources.
Decision to stop the pursuit, understanding that the cost outweighs the benefits.
For the CSO and others navigating the complex world of enterprise accounts, this is the clarity they seek: a structured approach to either accelerate or exit.
Final Thoughts: The Gift of Clarity for Your Organization
Whether it’s an early exit or acceleration, the decision benefits your organization and its stakeholders. When you pursue only the most aligned opportunities with a clear understanding of risks and rewards, you position your team for sustainable success.
Ready to make smarter, data-driven decisions in your pursuit strategy? Download our comprehensive whitepaper, Sales Leaders: Improve Your Forecasts, and gain actionable insights to evaluate each deal more effectively. Start improving your win rates, saving resources, and setting your team up for success.
