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What are some common SWOT analysis mistakes that can hurt your sales retention?

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A SWOT analysis is a strategic tool that helps you evaluate your strengths, weaknesses, opportunities, and threats in relation to your sales goals. It can help you identify your competitive advantages, address your challenges, seize your prospects, and mitigate your risks. However, if you make some common SWOT analysis mistakes, you might end up hurting your sales retention instead of boosting it. Here are some of the pitfalls to avoid and how to overcome them.

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1 Not aligning with your sales objectives

One of the biggest SWOT analysis mistakes is not aligning your SWOT factors with your specific sales objectives. For example, if your goal is to increase your customer loyalty, you need to focus on the strengths, weaknesses, opportunities, and threats that affect your retention rate, not your market share or your revenue. Otherwise, you might miss some crucial insights or waste time on irrelevant issues. To avoid this mistake, make sure you define your sales objectives clearly and use them as a guide for your SWOT analysis.

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2 Not validating your assumptions

Another common SWOT analysis mistake is not validating your assumptions with data and evidence. For example, you might assume that your product is superior to your competitors, but do you have any proof to back it up? Or you might assume that your customers are satisfied with your service, but do you have any feedback to confirm it? If you rely on your gut feelings or opinions, you might overlook some weaknesses or threats that could hurt your sales retention. To avoid this mistake, make sure you use reliable sources of information, such as market research, customer surveys, sales reports, or testimonials, to support your SWOT factors.

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3 Not prioritizing your actions

Another common SWOT analysis mistake is not prioritizing your actions based on your SWOT factors. For example, you might identify several strengths, weaknesses, opportunities, and threats, but do you know which ones are the most important or urgent for your sales retention? Or do you have a clear plan to leverage your strengths, improve your weaknesses, exploit your opportunities, and counter your threats? If you don't prioritize your actions, you might end up spreading yourself too thin or missing some key opportunities or risks. To avoid this mistake, make sure you rank your SWOT factors according to their impact and feasibility, and assign specific tasks and deadlines to address them.

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4 Not updating your SWOT analysis

Another common SWOT analysis mistake is not updating your SWOT analysis regularly. For example, you might conduct a SWOT analysis once a year or once a quarter, but do you check if your SWOT factors are still valid or relevant for your sales retention? Or do you monitor the changes in your internal and external environment that might affect your SWOT factors? If you don't update your SWOT analysis, you might miss some new opportunities or threats that could boost or harm your sales retention. To avoid this mistake, make sure you review your SWOT analysis periodically and adjust it accordingly.

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Christy Robinson

Sr. Gov Account Executive @ Accuris | UN/CEFACT Expert
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I have worked for a few organizations that do not even have a SWOT analysis. They don’t know their competitors capabilities, pricing or customers. It is difficult to compete when you don’t even know what you are up against.

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5 Not communicating your SWOT analysis

Another common SWOT analysis mistake is not communicating your SWOT analysis effectively to your sales team and stakeholders. For example, you might have a great SWOT analysis, but do you share it with your sales reps, managers, or clients? Or do you explain how your SWOT analysis relates to your sales objectives, strategies, and actions? If you don't communicate your SWOT analysis, you might lose some buy-in, alignment, or feedback that could improve your sales retention. To avoid this mistake, make sure you present your SWOT analysis clearly and persuasively, using visual aids, examples, and stories.

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Alex Mortensen

Independent Travel Consultant and Relationship Expert | Specializing in Production, Entertainment & VIP Travel
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I have found that my engaging my teams in the SWOT process (sometimes even having them do micro-version for their particular role/division) is extremely beneficial to getting everyone on the same page. Clear communication of where we are, where we would like to go, and what opportunities/threats there may be is invaluable to drive team engagement.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Chris B.

Driving Multi-Million Dollar Growth Through Strategic Sales Leadership
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Not all threats are external. It is necessary to include one’s self as a threat. We are often told that we can be our own worst enemy, but what if we are our greatest threat? Whenever completing a swot analysis, I always state myself as a potential threat. We work exceptionally hard to gain business but as we learned over the years, new business is the easiest way to grow. A lot of the reason for that is that we have high attrition with our accounts. Isn’t attrition a threat? What causes the attrition? What can we do to avoid the attrition? These are threats that we should identify and have an action plan in place to avoid.

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What are some common SWOT analysis mistakes that can hurt your sales retention?

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1 Not aligning with your sales objectives

2 Not validating your assumptions

3 Not prioritizing your actions

4 Not updating your SWOT analysis

5 Not communicating your SWOT analysis

6 Here’s what else to consider

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