Sales data analysis is a key way for companies to maximize their revenue in an increasingly competitive world. However, it is vital for the data to be accurate. Relying on guesswork leaves you vulnerable to being disrupted by more data-savvy companies, no matter what industry you’re in. Here’s how relying on data can help you reach your full potential.
Improve Your Propositions
By becoming data-driven, you will always be sure that you are saying the right thing, at the right time, to the right customer. While most organizations go for a one-size-fits-all approach, data-driven organizations are able to test many different propositions on different customer segments to identify which ones are the most effective. By collecting data points, you can build highly-personalized value propositions customized to the specific needs of every customer segment.
Improve Product Offerings
By analyzing transactions, you can identify products that are under-performing overall in certain customer segments. Then, you can investigate the reasons and use feedback from customers to improve your products. You might also determine that some products are no longer worth supporting or producing. By cutting them, you will decrease costs and focus more on products that drive the most profits.
Data allows you to identify customer needs quickly and offer personalized solutions, more efficiently, more quickly, and at a lower cost than your competition. In every industry, the winners will be the organizations that are the first to respond with products that best meet customers’ needs.
By comparing your leads to historical data and similar customers, you will be able to segment leads based on how profitable they will probably be and how engaged they will be. Instead of wasting time contacting leads that probably won’t be interested in your products, you can use your sales data to create a list of the most profitable and viable opportunities to contact first.
Analyze Old Data
Your historical sales data offers valuable information that can be used to improve sales efforts at every stage of the funnel. By learning which sales tactics work best, you’ll be able to improve conversion rates and refine your approach.
Gather all of your data from past opportunities, leads, and sales transactions and enter them into a CRM software. With all of your data organized and stored in one place, you’ll be able to see which strategies worked best for each product segment or customer.
You can also use historical data to improve sales forecasts, allowing you to identify the best targets and better allocate new leads and potential opportunities.
Pricing too high can repel customers, but pricing too low can lower your profit and harm customer perception. Aside from external research, you must carefully analyze your customer base and past transactions. Using your CRM data (or similar software), you can segment your customers by different prices to identify the ideal price range based on every group’s behavior, price tolerance, and demand.
Combining both external and internal data points gives you the necessary insights to determine an optimal pricing structure to achieve maximum revenue.