How can analytics increase your sales revenue?
The definition of sales analytics
Sales analytics are data measurement tools that you can use to gain a clear understanding of your sales performance, in order to set goals, refine strategies to optimise your sales performance.
What do sales analytics do?
Sales analytics help you ask relevant questions like ‘What trends are there among the sales that have been won?’ and finds out the answers for you. Sales teams use different sales analysis tools depending on what their requirements are. For example, if the team wants to know if they are going to meet their sales targets this month, they can do sales pipeline analysis to see how many deals they are likely to close. Using the sales data, the sales analytics tool might flag that your business is not on track to meet its monthly targets, and you might decide to spend more time and energy on things like prospecting and lead generation to combat this.
Making analytics the key to your modern sales success
As most businesses are becoming digitized, you can now gather daily sales data to gain critical insight into your business, customers, and sales. Used correctly, this insight can help you unlock huge growth opportunities for your business. One major advantage of sales analytics is that it helps your decision-makers choose data-backed strategies that are less subjective. Having more accurate sales forecasts, improved sales performance, reducing performance issues are all transformative in the sales process.
What are advanced sales analytics?
Predictive sales analytics
Predictive sales analytics tools analyse historical sales data to establish trends and patterns and make recommendations to help sales teams anticipate the needs of their prospects. This allows sales teams to engage prospects on a more individualised level and increase sales performance. This type of advanced sales analytics removes human error by leveraging machine learning and artificial intelligence to produce accurate forecasts and actionable sales intelligence.
Using predictive sales analytics makes creating a sales forecast and other sales reports easy. Because of this, more and more businesses are relying on this form of advanced analytics to help guide their sales projections and inform their budgets.
Are B2B companies using advanced sales analytics?
The quick answer is, yes they are. Combining sales analytics with machine learning has taken the business world by storm. Companies are using the valuable insights from these advanced sales analytics tools to design better marketing campaigns, create tailored customer recommendations, generate dynamic pricing and plan more streamlined financial budgets. But that’s not all. Businesses that use advanced sales analytics are greatly outperforming their rivals that are not.
The 5 essential types of sales analytics reports
1. The sales pipeline. For any business, an accurate and up-to-date sales pipeline is essential. As a sales leader, you should know exactly how healthy your business is at all times. ‘What deals will close?’, ‘How much will each deal bring to your business?’ These are the sort of questions that you simply cannot answer without a robust sales pipeline in place.
2. A sales conversion report. The sales conversion rate is the rate at which your business converts leads and prospects into customers. Looking at a conversion rate report can tell you the strengths and weaknesses of your sales processes, as well as showing how effective your overall sales strategy is. Likewise, analysing your conversion rates can help you figure out at what points in your sales cycle you are doing particularly well and what places could use a little more work.
3. An average deal size report. Knowing what your average deal size is, allows you to predict your future revenue. For example, if your target revenue for a quarter is £100k and your average deal size is 10k, you know you need to close 10 deals within that quarter to meet your goal.
4. Your average sales cycle length. Having a report on your average sales cycle length shows you the average time it takes your representatives to close a sale. Having this information gives you valuable insight into the effectiveness of your individual sales representatives throughout the sales process. When thinking about this metric, you should have an ideal timeframe in mind to use as a benchmark for your sales reps. For example, this could be the amount of time it takes a sales rep to go through the sales cycle. Having this information will show you which of your reps are struggling and need more support in order to meet their targets.
5. A report on how many deals are won or lost. To properly understand your business, keep track of both the deals you have won and the ones you lost. Using analytics, have a look to see if there are any similarities amongst the deals you have lost. Were many of the lost deals being worked by the same sales rep? Or perhaps quality leads are being lost to one of your competitors who has a great promotional deal running at the moment. You should then repeat this process with deals that you won to see what parts of your business are succeeding and why.