Sales data provides an open door to improvement in decision-making, future performance and customer satisfaction. Ultimately, it’s a key to a company’s success. The statistics and information you receive allow for a productive analysis of the sales team and its efficacy plus sales trends in the pipeline.
Sales Analytics You Should Be Making The Most Of
Analyzing sales data and trends means looking closer at the sales team, its closed and non-closed sales, and company and product performances. By combining all angles of data, you can more accurately forecast where the business is headed and how to change, maintain or optimize that position. Thus, you can make the most of your company’s strengths and its temporary weaknesses.
Quality Conversations with Customers Matter
Remember, it’s not just about quantity. If you are focusing on the number of calls or emails sent made each day, you are not focusing on the quality of those interactions. Sales isn’t just a numbers game. It’s about the quality of the touches, the cadence, the consistency and how you handle conversations that determines outcomes. Don’t get wrapped up in “fluff” metrics. It’s important for the sales team to take time to nurture leads and client relationships.
Quota is Still Important
What percentage of your team is attaining quota? This could mean the minimum performance expected or a stretch goal. If your team isn’t attaining enough, you’ll want to decide whether a goal is an attainable quota in the first place.
How to Analyze Sales Data
1. Identify Average Deal Size Per Team Member
The best way to analyze deal size is by dividing the total number of deals by the total dollar amount that comes from those deals. Measure this metric monthly or quarterly to make sure these deals are aligning with your company’s vision and objectives. It could help reveal potential risks or give you more insight on even larger deals you could start focusing on.
2. Calculate Lead-to-Close Ratio
Give attention to the percentage of leads that actually convert to customers. This will help you calculate how many leads your team needs to reach the company goals. It also shows just how effective sales members become over time and whether the quantity and quality of leads are looking up.
3. Understand Specific Deal Metrics
Deal metrics give you some insight on which deals you’re closing on and whether they’re a good use of your sales team members’ time. Concentrate on the deals themselves and ask:
- Where are these deals stuck in the sales cycle? (Identify sales funnel leakage to determine where customers are dropping off.)
- How much time is being spent selling in each stage? And why?
- Are you comparing current sales to previous sales for recurring trends?
4. Evaluate Product Performance
Look at your product performance. If you’re seeing a gradual decrease in sales on a product, it’s time to investigate whether it’s at the end of its lifecycle and if the focus should be on another product. Think about:
- What products are being purchased together/at the same time as one another?
- Are there seasonal sales trends in buying particular products or services?
- Are there differences in what repeat buyers are purchasing vs. new customers?
- Which products are selling the most?
The purpose here is to nail down the product needs that aren’t being met for your customers and then decide how to meet them with these answers in mind.
5. Analyze Overall Company Performance
Analyze and measure the overall company performance to see what’s lagging or exceeding expectations. Revenue is one of the most crucial sales analytics, though it must be viewed in the context of the other supplemental data. There’s nothing simpler than looking at how much money you received during a period of time and comparing it to how much you spent. Company performance can include looking at:
- New opportunities created
- Existing customers who upgrade to another product or service
- Percentage of contract renewals
6. Gather Customer Feedback
Measuring the positive responses/messages received by customers not only will boost morale, but it serves as a great tangible indicator of quality customer service – straight from customers’ mouths. It also shows the likelihood of customer retention and loyalty, as well as an opportunity to attract new business.
Sales Data: The Ultimate Business Forecast
By combining each facet of these sales analytics into one full-circle approach, your business and sales strategy become rich in awareness, leading the company to its sought-after success. With the help of a thorough and effective resource such as FRONTLINE Selling’s Staccato, you can track the behavior of specific sales reps to accurately identify performance and provide positive direction and feedback, offering unparalleled visibility to sales managers.