Sales analytics signifies several things to different sales teams. It can represent hard data, or numerous statistics and data put together through your CRM system. It can also reflect pipeline forecasting, lead scoring and customer information analyses. Businesses can take advantage of sales analytics to set goals, motivate and assess sales performance. The use of marketing and sales analytics is a certain way to ensure business growth. Sales analytics is in fact not only about numbers. It can make your sales team more effective and productive.
What is Data-Driven Sales?
Data-driven sales involves the collection of data and use it during the entire sales process, from the products sold to the time of day they reach out to customers. The best data-driven sales teams closely monitor both the customer journey and the sales process.
By analysing every step of the the customer journey, your team can find out about their needs at every stage. Normally the information you need is: how a customer finds your products and what information they need to complete the purchase with your company.
Assessing the customer journey is the first thing to do. Your sales process needs to be evaluated as well. By getting hold of analytics such as, sales growth, lead conversion rate, sell-through rate and sales-per-rep, your company gets deeper insights that show how well your sales process works.
Why is Data-Driven Sales so Important?
There is no doubt that one of the main benefit of data-driven sales teams is increased profitability. According to a research by McKinsey&Company, companies that use sales analytics are 5-6% more profitable than their competitors are. Sales analytics can help your company:
- Find out the real needs of your customers at different touch points
- Provide ways to customize the customer journey
- Recognize customer pain points
- Expose strengths and weaknesses of sales reps
- Find areas of improvement within your sales strategy
How can Analytics Improve Your Sales Strategy?
- Sales Enablement -Powerful statistics derived from sales analytics can lead to sales enablement. This is another prevalent buzzword currently and it involves giving your sales team all the tools required to do their job amazingly well. These are modern, data-collecting tools, that are used in four primary areas, according to McKinsey&Company:
Image Credit: McKinsey&Company
Identifying the Right KPIs
Many companies struggle with this question: Should they give commissions and bonuses, based on sales figures, profits, or some other metric? It is important to note that a poorly chosen metric can lead to poor results. Big data and analytics can help identify the KPIs that are best aligned with business priorities and can help define granular metrics that can drive desired outcomes.
Use Your Sales Analytics Tools to Empower Your Mobile Workforce.
It is a good idea to provide your mobile workforce with real-time access to updated information and performance metrics. In this way, they are not affected by information lapses that might cost them a sale or waste their time on bad visits. Having the information, they need whenever required, they ar more efficient in their jobs.
Organizations should make sure that the metrics they use to reward reps are aligned with their strategic objectives. They need to set individual targets according to past performance and on the potential of each rep’s customer portfolio. Besides, they can encourage reps’ motivation by setting and revising targets aligned to customers’ purchasing cycles while conducting experiments to arrive at the optimal frequency.
It is certain that data explains who your best customers are. Knowing who your VIP clients are will allow you to make efforts to find more just like them. As you collect more leads, you might consider keeping a record to see which ones are most likely to convert.
Match the people
It is essential to have the right people doing the right jobs to increase productivity. For instance, data can show you which sales reps are performing better, or who has the highest closing rate. With such information, a company can put staff in fitting, more productive roles.
Maximize customer lifetime value
Having a 360-degree view of your customers will allow you to maximize their lifetime value. For example, you’ll be able to find more about inactive customers and make efforts to convince for more sales them before they leave.
Get the right price
Usually, most deals are lost because of budget, according to Hubspot. Having specific data helps you get insight into customer budgets and can provide flexible possibilities that are more likely to close a deal. For instance, you might offer payment plans, suggest lower or higher tiered services, or increase initial customer support to encourage more sales.
It is certain that sales analytics can help your company get numerous benefits. From getting to know your customers deeply on a more personal level to creating a sales enablement strategy that leverages the best talents of your team, data can become one of your most powerful business allies.