In recent years, sales data and technology have altered the way sales teams think and feel, moving intuition to the backseat. Sales data have now seized control—and with a cause.
How to Manage Your Sales Data Effectively
Businesses now can make sales choices based on market conditions, competition activity, consumer preferences, and company-wide initiatives.
Sales data can indicate your success toward achieving your organization’s revenue or profit objectives. Also, these can be a good tool for guiding strategic planning and company choices.
Since sales data are a steady revenue organization tool, it may be hard to determine what measurements are needed. So before you can start using your data, you have to ensure you see the correct information.
Find out what statistics you should follow and how to get strategic insights to enhance business planning and performance. Take a look at this guide to get started in putting together your data-driven sales plan.
Importance of Tracking Sales Performance and Pipeline
Data are an essential part of an effective sales team. Sales data may assist managers in avoiding poor client matches and can highlight new opportunities that a company’s sales staff otherwise wouldn’t recognize.
Tracking sales performance is a crucial element in a company’s sales process, but it’s not simply because of the sales. You’re tracking the success of your sales team because it’s a reliable tool for determining whether you see results or not.
The whole sales journey may be daunting. However, you can get help from an efficient sales activity tracker, or you can export Pipedrive data to BigQuery and similar tools. Information like team or individual sales performance, the number of prospects in your sales trunk, and day-to-day duties are essential components of a good sales strategy.
Also, a sales pipeline is critical for tracking your sales data. A sales pipeline is a visual picture of the future of sales. This indicates how many salespersons are anticipated to end in one week, month, or year and how near a sales representative is to achieving their sales quota.
If your sales goal is $10,000, for example, you’d have to convert twice as many prospects. This is where the analysis of the pipeline is provided. You’d be more effective in your work if you discover changes inside your pipeline that’d help you move more opportunities from one phase to another.
Types of Important Sales Data You Should Track
There are types of data that are frequently used as key performance sales indicators (KPIs) in businesses. These are essential for business success as they track how their sales staff affects an organization’s broader objectives.
The total revenue of a company includes all its revenues, irrespective of their sources—sales, marketing, customer performance, and investment. This is always greater than sales since it’s the accumulation of all the sales channels of a business.
The data pertaining to the average daily sales are also typical and may vary depending on the period measured. For instance, you may measure average daily sales over a single month to compare annual statistics.
Or you may compute a full-year everyday average sales to observe how your shops and sales teams operate over a 12-month period.
Sales By Lead Source
These data indicate where your sales come from and what forms of lead generation work or don’t work. It’s essential to identify the sources of your sales. Generally, you should concentrate on increasing revenues from the most established sources of traffic.
On the other hand, it’s also essential to experiment in finding new leads and sources of traffic to increase earnings and reduce risks.
Quota attainment provides insights into the health of your sales organization. It’s a frequently used indicator for assessing performance against overall objectives.
Quota attainment may be utilized to highlight possible problem areas, such as where sales rep performance levels drop down and the disparities between top, medium, and poor performers.
Year-over-year (YOY) growth is the result of comparing a company’s performance metrics for a specific month or quarter of the previous year with those for the same period of the current year.
This would enable the company to evaluate how much the business has increased in comparison with the previous year. You may compare performance data such as revenue, total employment, or item delivery rates to determine your company’s YOY growth.
Market penetration is the ratio of customer use of a product or service to the entire projected market for that product or service. Market penetration may also create strategies for increasing the market share of a product or service.
Managing Your Sales Data Effectively
When data drive strategy, the result is a solid and integrated sales plan. It clearly defines goals, describes the necessary sales rep behaviors and provides the resources for each person to execute successfully.
Tracking the proper metrics of a company is critical, but it isn’t easy to successfully do so without adequate technology.
A data-driven sales team adheres to few different approaches. Take a look at these to check if your sales staff can adopt similar strategies.
Align Your Company’s Goals
The company and its products and services exist to address the genuine needs of the people. So every sales presentation can be fine-tuned while remaining goal aligned by delving deeply into particular use cases and utilizing relevant market research.
A business development leader can align their efforts with a company’s long-term objectives to ensure their team understands the core products of the company. It’s not only the ‘whats’ and ‘hows’ but also the ‘whys.’
Regardless of the circumstance, teams must communicate often and collaborate to achieve common goals. To be productive and increase the odds of generating a sale, sales must include the same message or story as that of marketing, for example.
Follow A Sales Process
A sales process is a series of repeated actions a salesperson uses to get a potential customer from early awareness to a completed transaction.
Having a consistent sales process may also assist less experienced representatives in rapidly catching up on best practices and learning what to do at various phases of the sales process.
A sales process would enable you to determine which components of your sales strategy are practical and ineffective.
By repeating the same activities throughout your team, you may identify areas where new KPIs and sales data can be integrated and tracked. Here’s an example of a sales process:
1. Gather prospects by requesting referrals from existing customers or colleagues who may be interested in your product or service.
2. Qualify a lead to determine whether the prospect has the ability and desire to purchase your product or service, which could help you save time and money on those not interested in investing in what you’re offering.
3. Conduct preliminary research on prospective consumers before emailing or contacting them. By familiarizing yourself with the history of your target client, you may better structure a discussion.
4. While completing a transaction is highly dependent on the quality of your product and how effectively the sales process has been performed up to that point, the closing pitch you employ is also critical. And this is true regardless of the particular concluding statement or question you choose. Throughout the process, your tone, voice, and language would all influence the prospect.
Analyze Your Current Sales Process
Sales analysis is the process of mining your data to assess your sales team’s performance versus its objectives. It offers insights into the best and worst-performing products or services, sales challenges and market possibilities, sales forecasting, and revenue-generating sales activities.
Regular sales data analysis would enable you to know better the goods your customers are purchasing and decipher why your consumers behave in a particular manner.
Additionally, you may see trends in your lead conversions and drop-off rates. All of these factors would contribute to the optimization of your sales process.
Choose Tools to Analyze Your Data
Select a sales analysis tool and analyze your data. You may use a spreadsheet software program to better analyze and interpret your sales data for a certain period.
To begin your analysis, ensure you have enough quality data so you can make sound judgments. You may need to extend the period covered by your data to identify significant behavioral trends.
Also, a significant amount of sales analytics and reporting is accessible directly from a customer relationship management tool.
After crunching the data, you should have a historical picture of your sales performance and insights into your team’s success and failure.
At this point, you may make preliminary conclusions.
Incorporate Quality Audits Into Your Sales Process
Aside from refining your sales methods, ensuring quality auditing of your data should be a focus. Create an audit team to make sure all client data provided to your sales team is relevant, correct, and valuable.
This would assist sales and marketing teams in prioritizing data. This quality rating system may also help your sales manager assign client data to various representatives. Your sales staff would also become more efficient and productive since the data they’d work with would all be sales-ready.
Regular sales analysis establishes responsibility and provides insights about your customers.
You can also identify the characteristics of top-performing sales representatives by analyzing your company sales.
These sales analysis techniques can provide you with a step-by-step approach for effectively managing your sales data.
Some other articles you might find of interest:
Understand how you can maximize your time to grow your business:
Time Is Money And Your Most Valuable Resource. Use it Wisely to Build Your Business
Looking for effective ways to drive and increase traffic to your startup website?
SEO Traffic Guide To Boost Your Blog Rankings
Looking for effective ways to drive and increase traffic to your startup website?
3 Top Reasons Why Startups Fail and How Not to Become a Victim