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Sales Analytics Tools
How a business thrives or survives entirely depends on the strategies that the sales management deploys to identify, model, and understand the market, as well as how the project may turn out in the future. And now, with the rapid growth in the tech space, there are highly functional sales analytics tools explicitly designed to aid in efficient sales data analysis, planning, and decision making.
Here’s how sales analytics tools contribute to efficient decision making
They provide detailed statistics on consumer patterns
Regardless of your business’s size, it is imperative to address your customers’ concerns if you are to retain excellent sales metrics. That’s why established brands are always amassing as much customer information and data as possible to shape their products and services to the best interest of the consumer.
Statistics show that organizations using consumer insights outshine their competitors by 85% margin in sales growth and 25% in gross margin.
Help in constant evaluation of marketing strategies
As you strive to implement new marketing strategies into your business, keeping your sales records on the right track with these tools makes the evaluation relatively seamless. They integrate physical data visualization features in charts, curves, bars, and other graphical elements. This is particularly important for inside Sales metrics.
In essence, sales analytics tools save more time for salespeople. They no longer have to spend hours analyzing how sales went down through the month. Everything is updated just after feeding the data.
Proactive risk management
Whether it is a new venture or an ongoing project, it is important to know that misfortunes can occur anytime. Risk analytics integrated into these tools help entrepreneurs quantify its impact and develop precautionary measures in time.
How to measure sales performance
In the course of business growth, there are a couple of metrics that you must consider if you are to develop a competitive edge in your next marketing campaigns. However, most of them are too complex to be analyzed manually. That’s why every large organization considers using sales analytics software to measure their sales performance effectively. So, let us see how:
Estimating efficiency of sales productivity
Sales productivity is the ratio of the time that salespeople spend in the actual selling to the total time in office. Research shows that the average salesperson will only spend 35% of their time doing the actual selling and the rest in other office engagements. Although you don’t expect this efficiency to be 100%, too low efficiency may translate to poor business performance.
Now, because it’s not very easy to keep track of that all the time, sales data analysis software can do that just fine.
Keeping a record of lead response time
Sales reps who respond within the first five minutes stand up to 21 times likely to close a deal as compared to those who revert after 30 minutes. But the question is, how do you follow up on your sales reps for hundreds of inside sales made every day? Well, that’s why you don’t want to underestimate the power of these analytic tools.
They record how fast your reps connect with leads. So monitoring their efficiency gets them more committed and accountable—which ultimately results in closing more deals and better sales forecasting going forward.
Using Opportunity Win Rate statistics
Down the sales funnel, when a lead accepts to share their information, it shows they are interested in your services—so that is an Opportunity. Now, when they proceed to purchase the service, that becomes a win—and the measure of selling out the leads becomes the win rate.
And of course, there cannot be a 100% opportunity win rate. Some leads could be lost due to poor rapport building and ineffective presentation of demos, among others. And that’s when you may decide to transfer the underperforming sales reps to departments where their resourceful skills will be of value. Alternatively, exposing them to better sales coaching can work pretty well—all that courtesy of statistics from sales analytics software.
Free analytics tool
However, like any other free software, these tools have many limitations. So they may not be ideal for a busy organization.
Free software is not really free
Don’t be so excited when you find a free analytics tool because, honestly, those are just marketing strategies. Well, some will allow you to use some basic functionalities. However, for more complicated operations, you will have to purchase a premium plan.
Lower accuracy level
Eventually, everything in sales analytics comes down to accuracy. Every decision you come up with should be from genuinely reliable and accurate data. Unfortunately, some free sales analytics tools have compromised algorithms which may provide misleading information.
But the last thing you want in your business is coming up with decisions from inaccurate data that may end up hurting your enterprise, right? That’s why you need to keep off from any free analysis tool.
They only last for a short while
Most free sales reporting software will only be usable for a limited duration beyond which you will have to pay for a premium plan. Typically, a free subscription for most software lasts for 7, 14 days, or a month. And of course, you are only subscribed to a basic plan, as we mentioned previously. That’s why it is never advisable for any business to use free tools in their professional engagements.
Different enterprises consider different Key Performance Indicators (KPIs), also known as sales metrics, to evaluate their progress towards their objectives. Some of these metrics include Return On Investment (ROI), conversion rates, churn rates, monthly sales, average days to close, etc.
So, why is it so important to know your sales metrics as a company?
That is the foundation of informed future decisions
Correct evaluation of sales performance metrics goes a long way in identifying business strengths and weaknesses. With that knowledge, you can figure out what strategies to deploy to retain or boost your business strengths, and how to turn weak points into strengths. For instance, high traffic and low conversion rates could be something to do with your website’s user experience, which can be corrected by deploying better technologies.
They suggest areas that need more funding
If your enterprise offers a wide range of products, you can use their ROI to identify those that need extra funding for the best returns. A good sales metrics template comes in handy in such cases. It helps compare each product individually from the previous financial periods, and how aids in understanding the areas that need more resources. Typically, this happens at the end of every financial period.
Evaluation of business progress towards the set goals
Every business has objectives to achieve. It could either be a daily, weekly, monthly, or even an annual target. So, using different sales metrics like monthly inside sales metrics helps the management gauge whether the business reached its goals. It also forms a basis for the next financial period to help set realistic goals.
Knowing what partners to deal with
For a company that deals with different products from many suppliers, a B2B sales metrics outline means quite a lot. For instance, if the company realized low sales in a particular product, it could be due to low-quality raw materials supplied by their B2B partner. With that, your company can switch either to another supplier or request better raw materials.
Sales Analytics Software
Canopy.io is one of the best tools you can ever think of for your company’s sales analytics. It is specially tuned for firms that operate highly intensive accounting operations. It comes with a great suite of cloud-based features to streamline your firm’s operations.
Canopy included features such as competitor analysis, performance metrics, sales trend analysis, modeling and simulation, exceptional and correlation analysis, and a dashboard, to mention a few.
The software also has a client portal where you can easily share documents with your clients, which is a great add-on.
It is, by far, the most commonly used free digital analytics tool. It allows businesses to monitor traffic engagements on their websites to aid in their digital marketing strategies. With Google analytics, savvy marketers can understand where most of the traffic is coming from, what best interests them, as well as services with less interest.
The statistics obtained from this software are useful in calculating other sales metrics such as conversion rates and opportunity Win Rate. It allows you to access personal information about your visitors, such as gender, location, age, interests, the device they were using, and a lot more.
The good thing is, Google Analytics is excellent for any business regardless of its size of influence.
If you are looking for a great CRM solution, Salesforce should be the software to go for. Apart from the add-ons and third-party features integrated, it has a beautiful user interface that is really fast, powerful, and easily customizable.
The software allows easy importation of data from excel, calendar, Gmail, etc.. It has a very active online community and a comprehensive ecosystem. As a radically growing software, it will make a perfect CRM for small enterprises that are also expanding fast. Better yet, Salesforce has great admin controls, which make it even better for in-house admins because they no longer need further training.