Sales analytics has now become an inevitable part of any organization. With the current situations forcing organizations to rely more on a digitalized business model, businesses now have to understand the importance of digital skills like data reporting, computing, and sales analytics training.
The sales structure has changed remarkably over the past few years. Organizations now have to go through loads of data to understand the behavior of potential customers. The buyers and decision-makers have become more aware, and they demand the best solution tailored to suit them. In such circumstances, sales analytics is used to understand and predict sales trends and formulate effective strategies for future events.
So What Exactly Is Sales Analytics?
In simple words, sales analytics is the process of analyzing sales-related data to discover insights and trends that help organizations develop better strategies to improve sales numbers. Data is recorded over time, and based on the data, crucial insights are extracted that allow businesses to understand how the sales structure is behaving. The bulk of data is categorized and computed based on business requirements to develop sales analytics reports that allow organizations to touch key points that successfully generate sales. Sales analytics also helps the sales reps with accurate information, allowing them to close more deals.
Types of Sales Analytics
Data scientists can develop different types of reports based on the organizational requirements of their clients. According to the conclusion and implementation of the sales analytics data, sales analytics can be classified into the following 4 types:
- Predictive Analytics: This type of analytics is used to predict future events based on past trends. It allows an organization to pinpoint crucial future events and strategize accordingly. With predictive analytics, businesses can precisely predict future events, allowing them to optimize marketing campaigns, reduce risks, detect fraud, improve operations and improve productivity.
- Descriptive Analytics: Descriptive analysis uses historic data of an organization to understand the changes, progress, and development of the business in the past. Methods like data aggregation and data mining are used in descriptive analytics to summarize that historical data to identify patterns and insights. Descriptive analytics can provide information on how the sales, operations, and marketing campaigns behaved in past.
- Diagnostic Analytics: Organizations rely on diagnostic analytics to reason a certain situation. Typical data analytics is focused on answering why a situation has occurred. Several techniques like data discovery, data mining, drill down, and correlations are used to locate the data and to understand the “why” behind situations. Diagnostic analytics similar to descriptive analytics, but it goes deeper to find out the reasons for things summarized in descriptive analytics.
- Prescriptive Analytics: An analytics report is considered prescriptive when it offers a prescriptive plan to avoid certain expected situations. In other words, prescriptive analytics is similar to predictive and descriptive analytics but focuses mainly on the solution. Descriptive analytics reports what has happened, diagnostic analytics provides “why” it has happened, predictive analytics predicts future events based on what has happened, while prescriptive analytics explains what can be done to reduce risks and optimize operations. For example, through prescriptive sales analytics, the organization can track the factors that affect the sales and provide sales reps with a better plan.
Key Practices To Follow
Sales analytics is a wide subject, and every part of it may not be viable for every organization. Therefore, it is important to follow some key practices that can help you achieve the best results from your sales analytics workforce. Here are some of the standard best practices that an ideal sales analytics program must follow:
- Data Quality: The entire structure of sales analytics works on data quality. So, it is important the data reporting and quality must be checked well to suit your business.
- Prioritization: As mentioned earlier, not all of the data may be viable. Therefore, special focus has to be paid to the prioritization of relevant data.
- ROI: Sales analytics is an investment and for every business, investments have to be in productive sync with the ROI.
- Management: Management of changes and upgrades in the analytics and software system has to be done professionally, or else, the sales reps will be under tremendous pressure understanding and managing the changes while communicating with the prospects.
What Are The Benefits Of Sales Analytics?
As you can see, there are various types of sales analytics used to find conclusive information about different sales issues that can help an organization develop better sales strategies.
Here are some of the most common benefits of effective sales analytics for a business:
- Improved Sales Activities: Usually with the traditional sales system, sales reps have to invest a lot of time in non-sales-related activities. However, with effective sales analytics support, sales reps can invest more time in sales activities. Activities like sales forecasts and leads prioritizing can be automated, giving more power and flexibility to sales reps.
- Identifying Important Factors: Sales analytics helps your sales team to pinpoint the key factors that affect sales. Various growth factors, the do’s, and the don’ts of sales can be identified and provided to sales reps. Sales reps can therefore target precisely the growth factors and improve the conversion rates.
- Increases Efficiency: When the sales reps are well-equipped with essential data, it makes way for a systematized approach and higher efficiency. Sales analytics helps sales develop a uniform sales structure allowing them to guide potential buyers in every step of the sales process. With efficient sales analytics, sales reps are more aware of the various factors that lead to successful deals. It allows them to be confident and customer-friendly throughout the process.
Sales analytics training has become a highly essential factor, shaping business growth across the world this year. Businesses today are making use of the technological advancements and improved data computing abilities to obtain in-depth sales analytics reports that help them build better relationships with buyers.
So if you have a business online, the best is to not delay conducting effective and professional sales analytics, or else you risk being left out behind in this fast-paced world of modern business.