Lost sales analysis is a critical practice that involves examining opportunities that were not converted into sales. It's about understanding why a sale was lost and what can be learned. For example, if a software company loses a deal to a competitor due to more flexible pricing, lost sales analysis would identify this issue, leading to potential adjustments in pricing strategy. The process includes: Identifying the Lost Opportunities: Recognizing patterns in lost sales, such as losing deals in a specific market segment. Understanding the Reasons for Loss: Analyzing feedback to pinpoint why sales were lost, like a lack of specific features that competitors offer. Implementing Improvements: Making strategic changes based on insights, such as enhancing product features or improving sales training.