As a business, you’d want to hit your revenue goals on a consistent basis. But, is it really possible to achieve it if your major decisions are based on guesswork? We believe not. This is where collecting and analyzing data regularly becomes crucial for your business. You’d get real-time insights that’ll help you make informed, data-driven decisions which only reduces the margin of making an error.
So, what exactly is sales data analysis, and how does it impacts your revenue?
What is Sales Data Analysis?
Sales data analysis is the process of collecting all the sales-related data, analyzing it, and using it as a tool to further improve your sales. It gives you an overall picture of how well your team has performed with respect to the goals you’ve set, the number of sales made, the product/service that the customers regularly purchase, the sales activities that bring you revenue, etc. What’s more, this also gives the sales managers an opportunity to get the next move right.
How does Sales Data Analysis Help You Generate More Revenue?
Improve Value Propositions and Price Points
You need the right value propositions while communicating with the audiences of different segments. A one-size-fits-all approach may not work if you’re selling to more than one customer type. This is where sales data analysis can come in handy. You can develop tailor-made value propositions depending on the segment, and address the specific needs of the customers.
Also, by understanding the market data and dynamic-pricing engines, you can test the price points for your different solutions, and arrive at the ones that would maximize your sales, and thereby, your profit.
Narrow and Refine Product Offerings
Sales data analysis can give you a clear picture of which of your offerings are truly performing well, and which ones haven’t taken off at all. Then you can evaluate further on what’s actually missing in your offerings, get your customer feedback, and redefine how you want to sell your products.
Disruption and Innovation
To remain a leader in your category, you’ve to quickly adapt to the changing needs of the marketplace. This is another area where investing in sales data can give you an edge over your competitors. You can identify the needs of your customers well in advance, and provide them with personalized solutions faster.
Accurate Sales Forecasting
By understanding the historical data, it only gets easier to predict your future sales. Further, you can set realistic revenue goals and the time frame that’s needed for it. What’s more, sales analysis also helps you to manage your resources more efficiently, allowing you to cut down on all that truly doesn’t add any value to your business. Also, you can compare your performance with the industry standard, clearly see where you are lagging, and can make decisions accordingly.
Performance Assessments and Incentive Plans
Tracking the performance of every rep gives you a fair idea of who all has exceeded the expectations, and who all has fallen short in reaching their target. In this way, you can reward the high performers, and share actionable feedback to the ones who need to level up. The CRM data also shows you how your reps spend most of their time, and you can prioritize the behaviors that can impact closing deals and generating revenue.
Increase Retention Rates
Retaining your customers is crucial to reaching your revenue targets, and further increasing your profit as a business. This is why you’ve to take utmost care of your largest accounts, ensure maximum customer satisfaction, and look to retain them. With sales data analysis, you can identify why your customers churn, and can constantly work towards fixing it and making sure that they’re completely satisfied with your service. Also, you can look to engage with the customers who’ve signed up for the demo but haven’t made any progress after it. Reach out to them and move them through the pipeline.
Increase Repeat Purchase from Existing Customers
Your chances of selling to an existing customer are far more than making a new customer purchase your product. It is for this reason that you’ve to look for opportunities to up-sell and cross-sell to your customers. Look for the buying pattern in each segment, and suggest personalized recommendations that only increase the probability of your customer purchasing. This will indeed result in your revenue growth.
Categorize your leads by comparing them to past data on similar customers. This makes it simple to know which type of customers are likely to engage and would go on to buy your product. And, by analyzing the pipeline data, you can easily spot the bottlenecks, and fix the weak points.
Sales data can help you massively, and for it, all you’ve to do is to track your sales activities in the right way. By properly utilizing it, you’d know what steps to take next, what’s working and what’s not, improve your sales process, and ultimately, get more deals closed. Though, you’ve to be regular in capturing the latest data and analyzing it, so that your sales team has the best chance to stay ahead of their competitors.
And, if you're looking for a hand in helping you track vital sales related data without any hassle, book a demo with us today!