Gap Analysis in Sales



What is Gap Analysis?

In the function of Sales, we often conduct Need Analysis (Desire[1] Analysis) of the customer to best understand the fit between customers needs and the No

Even after doing Need Analysis, the customer may still defer the decision to buy because Gap Analysis is still pending.

Gap Analysis finds the GAP between customers awareness of the existence of set of needs and desires and the decision to buy.

This gap may be due to one or all of the following reasons:

a) Financial Constraint

b) Financial Prudence

c) Awareness about competition (Need to vet all options)

d) Wait for the shoe to bite and sustenance model

e) No urgency to decide ( Total control over external environment)

f) Mistrust of salespersons analysis

Questions in Gap Analysis

  1. 1. If the needs identified for a customer is not fulfilled right now

a) What is the financial loss of the customer?

b) What is the Opportunity loss[2] of the customer?

c) What is factual loss of the customer?

d) What is the emotional loss of the customer?

e) How does the If not now, than situation look like for the customer?

  1. 2. If the needs identified for a customer does not appeal to the customer

a) What is the VED[3] Analysis of customers perception of their own needs?

b) What is customers counter logic to your logic?

c) Why does the customer not find you/concept/solution/product attractive enough?

d) If you were the customer what would you do and why?

e) Is it that the customer is satisfied but others are not? (Influencers/Financer/Peers/ Consumer)

Suggested Statistical Tools

  1. Trend Analysis
  2. TCO[4] Approach
  3. Conjoint Analysis
  4. Pivot Table
  5. Scatter Diagram
  6. Cluster Analysis


[1] Desire Analysis Customers do not have any need other than basic Food, Shelter and Clothing. Everything else is a desire. Customers always like to call this desire before deciding to buy a product or service.

[2] Opportunity Loss is the notional loss incurred by not doing something which could have been done.

[3] VED Vital, Essential and Desirable

[4] TCO stands for Total Cost of Ownership. This calculates the landed cost of an asset over a period of time vis a vis cost of the asset at the time of purchase.

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