Data analytics and big data have become increasingly important in today’s fast-paced world. To compete in the market, you must have a handle on data. When diving into data analysis, it can be overwhelming. There are metrics covering marketing, customer behavior, search traffic, and more. Where are you supposed to start?
One of the most crucial areas with the most potential for big rewards lies in comprehensive sales data analysis. Sales data analysis is just about looking at various sales metrics, analyzing them, and using that information to improve your entire sales process.
From lead nurturing, to close ratios, to pricing structures, and conversions, sales data analysis covers it all. Let’s look at all the ways you can use data analysis to improve your sales, and ultimately, increase your profit.
What Can Data Analysis Do for You?
In today’s increasingly digital, tech-forward world, there’s an overwhelming number of tools on the market to collect and analyze sales data. From Google analytics to WordPress plugins, to CRMs like Salesforce, there’s no shortage of innovative technologies for data collection and analysis.
Sales analysis allows you to gain meaningful insights from sales trends, data, and metrics, and then use that insight to set goals, forecast future performance, and enhance existing systems. Most analytics reports display visual graphics, percentages, and numbers that you can easily digest and interpret.
So, what types of things can data collection and analysis provide?
- A Granular View of Sales Trends (including growth and dips)- When you’re able to identify periods of growth and decline, it becomes easier to recognize patterns and understand how and why these trends occurred. This insight improves forecasting and sales operations overall.
- Identify Opportunities– At face value, all leads look the same, but what if there were a way to weight the leads by most likely to close? Thoughtful analysis provides insight into understanding which leads are more significant opportunities than others.
- Performance of Products and Sales Initiatives– Analytics provides insight into which products and sales initiatives are performing well and which aren’t. You can easily see if that new sales script is effective or if your customers are responding to the latest product launch.
- Lead Conversion Ratios– It’s crucial to know how many of your leads are converting. If your conversion ratios are low, it could mean that the leads aren’t high-quality, or it could mean that your sales staff needs more training. This information also helps establish baseline cost-per-acquisition, and other important numbers to know.
- Sales Per Each Sales Rep– Data collection allows you to track how each sales rep is performing. From conversion rates to total sales, data analysis allows a bird’s eye view of it all.
Don’t Miss the Data Analysis Train
These are just a few of the ways that you can use data analytics to improve your sales operation. Getting started can be tricky, though. Several companies offer data analytics consulting services for reasonable rates. Research shows that data analytics consulting is a worthy investment and provides a significant ROI. If your budget won’t allow for hiring outside experts, do some research, and learn how to use some of the tools available. Sales data is too valuable not to utilize.