Sales data analytics is the collection and amalgamation of the data coming from sales and services. This data is used to generate trends that can be used to identify metrics for creating future sales target figures. Sales data analytics also helps in understanding the success of your previous sales campaigns and forecast the probable future sales.
The sales analytics data can help keep track of your sales representatives and to keep them in view of their sales targets. This motivation can help improve your overall turnover and help in your business prosperity as well.
Types of Sales Data Analytics
There are four areas where sales management analytics are used to gather important insights that can help in shaping the future growth of your business.
1. Pricing Analytics
Pricing analytics are the key pointers for you to understand where exactly the value of your products or services come from. It also helps you understand the needs of your customers and their motivation and the amount of money that they will be willing to pay for your products and services.
The pricing analysis data helps you find out the details of past sales performances. The data that you find from pricing analytics helps you learn about the amount of money the different segments of the demography are willing to pay for your products. This information can help you create a more flexible pricing structure that will eventually help increase sales.
2. Possible customer analytics
Some people come across your business but do not end up making the purchase decision for your product. This can be due to many reasons, like high pricing, not being able to meet the customer’s needs, having not enough trustability with the customer. These reasons need to be correctly identified and dealt with for an increase in the sales for your business.
The process is done through open-ended questions to the customers to help them understand their needs in more detail. This information about the customer’s needs can be collected through feedback forms or surveys. Both of which can be used to collect vital information that can have a positive impact on the sales of your business.
3. Comparison with competitors
Comparing analytical data with your competitors is the way for your business to excel. It is important to compare yourself to the top competitors of the market and to understand their ways of working and use that to improve your business standing as well.
To learn about the advantages that your competitors have and can help you learn about the ways you need to expand your business. The differences in approach to pitching or pricing of products that you can learn from your competitors can help you improve your own strategies.
In simple terms, data analytics is largely dependent on comparing data and figures. It helps you understand your place in the market and plan your venture accordingly.
4. Growth Ceiling Analytics
No business can expand infinitely. There is always a ceiling to the growth of the sales of your products and services. Understanding if the product you are developing can grow potentially or not in a saturated market is crucial from the very beginning.
This information helps you make realistic projections for your sales teams and keep them motivated with achievable targets. It is also important for a business to not step into overly-saturated markets as there is little or no growth opportunities there.
All this information about market saturation and growth opportunities has to be researched through sales analytics market research as well as government and industry reports. Making this decision early on is essential for the growth of your business.
As mentioned in the point above, sometimes customers do not know enough about your brand to make a purchase decision. This is where branding comes in, and can help create the identity for your business in the eyes of the public and help you improve your customer retention, as well as customer loyalty.
The type of branding required for your business can be deciphered from the sales data of potential customers. That information can help you create or adjust your branding directly catering towards your target market helping you create a more impactful branding.
To find more information on how your branding is working for your business, you can use free tools, such as Google Analytics to learn more about how much traffic your website generates from branded content and if the traffic ends up making purchases on your website or not.
Sales Data Analytics is one of the most easily-understandable and directly-affecting analytics tools that can help your business directly if done correctly. Learning about sales management analytics in detail can help grow your business and embrace its full potential.
Sales analytics can help reveal a lot of information that does not reveal itself to plain sight. The trends that can be identified in your sales data can help improve your business by improving revenue generation.