According to a survey, most sales organizations today (57%) do not view themselves as effective users of advanced analytics and data. Many companies struggle to benefit from even basic analytics, while some have yet to even dip dived into data lake at all for their revenue to start soaring. If we look at all the tangible benefits, analytics might still be a bit of a sideshow when it comes to sales.
According to research cited by McKinsey, organizations that influence customer behavior data to generate behavioral insights outdo peers by 85% in sales growth and more than 25% in their overall margin.
Unfortunately, sales teams have too much data to analyze and so many directions their analysis can take. They often struggle to find the best way to use their data to build strategies for increasing sales and profits. Well-designed analytics programs deliver significant top-line and margin growth by guiding sales teams to better decisions. But that only happens when companies can do two things well: focus on areas where analytics can create the most value, and implement wisely.
Below are some of the tips to use data wisely!
Use Data to Develop Outcome Prediction Models
We’ve all heard the financial adage “Past performance doesn’t guarantee future returns.” While this typically applies to investment strategies, it can apply to business practices as well. You can’t stop innovating within your sales processes just because something continues to drive deals and successful close rates.
Sales data analysis serves as a solid foundation for predictive models by mapping out a path for the future. Identify successful trends and strategies from the past to predict what’s coming down the road.
The key to success with this tactic is consistent analysis and an evolving model. Don’t rely on stale data. Make sure you’re always looking at the latest information to identify the newest opportunities.
Augment Pipeline Management
A bit of research on basic profile information, such as location, company size, industry, and inquiry type, makes this much more achievable.You may feel as if you know very little about the leads filling up your funnel, which makes catering to their needs feel impossible.
Segment your prospects just like you segment your existing customer base. Prioritize each prospect based on how profitable the corresponding customer segment usually is. Then identify the best product lines to offer them. This lead qualification and ranking process ensures you spend less time on leads that most likely won’t pan out.
To double your efforts, run a historical analysis from your CRM system to identify how sales reps spent their time. Determine how their efforts relate to win/loss. This highlights where you should spend your time on sales moving forward.
Don’t forget to identify pipeline trends, bottlenecks, and weak areas of the funnel during this process. Where are prospects getting stuck and why? How many calls does it take to close a deal, and are sales reps aware of the minimum amount of calls they must make before giving up on a prospect?
Increase Sales on Stumpy Sized Accounts
Everyone on your team knows who your big buyers are. Your reps assigned to these companies already take good care of these accounts (or they definitely should be). However, major sales opportunities are often hidden within small accounts – customers who order sporadically and/or very little at all. What’s keeping them from purchasing other items to bulk up their orders? Have your sales reps conduct a structured interview process to gather key data insights on why customers don’t spend more.