/ An executive’s guide to sales analytics

An executive’s guide to sales analytics

The market today is driven by one thing: data.

As an executive leader, you likely have access to more data than anyone else in your company. From customer data to sales data, you have a wealth of information at your fingertips. However, sifting through all of this data can be daunting, and it’s easy to feel like you’re not making the most of it.

This is where sales analytics come in. By analyzing your sales data, you can gain valuable insights into your business and make better, more informed decisions.

Sales analytics is the process of collecting and analyzing data to improve your sales process. By understanding your sales data, you can identify patterns and make informed decisions that will help you close more deals and grow your business.

CEOs who order their sales teams to “just close more deals” are missing out on a huge opportunity to optimize their sales process and achieve their growth goals. Without a strategy that is backed by data, your sales team is just guessing.

We’ll take a look at what sales analytics is, how it can benefit your business, and how you can get started using it to make informed decisions about your sales strategy.
 
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What is sales analytics?

So what exactly is sales analytics? As mentioned above, sales analytics is the process of collecting and analyzing data to improve your sales process. By understanding your sales data, you can identify patterns and make informed decisions that will help you close more deals and grow your business.

Sales analytics can be used to answer important questions about your business, such as:

  • How many deals should my sales team be working on at any given time?
  • What is the average deal size for my company?
  • What is the close rate for my sales team?
  • How long does it take to close a deal?
  • What are the most common objections that my sales team encounters?
  • What are the most common reasons why deals are lost?

Sales analytics can provide valuable insights into your business. By understanding your data, you can make informed decisions that will help you optimize your sales process and achieve your growth goals.
 

The benefits of implementing a sales analytics strategy

Sales analytics for analytics sake will not help your business. However, if you use sales analytics to inform your decisions, you can see a number of benefits, such as:

Improved sales productivity

Sales productivity is a measure of the effectiveness of your sales team. It’s calculated by dividing the number of sales by the number of working hours. The higher the ratio, the more productive your sales team is.

How can analytics benefit sales productivity? By understanding your sales data, you can identify areas where your team is struggling and make changes to improve their productivity.

For example, if you notice that your team is spending a lot of time on administrative tasks, you can look for ways to automate these tasks or delegate them to someone else.

Increased sales efficiency

Sales efficiency is a measure of how well your sales team uses its time. One of the most common ways businesses measure this metric is through deal timelines. The longer a deal takes to make its way through the pipeline, the more inefficient it is. Take the average pace of deals, and you can get a real sense of how efficient your team is.

A more efficient sales team is a more productive sales team, and analytics can help you improve your sales efficiency. By understanding how your team spends its time, you can identify areas where they are wasting time and make changes to improve their efficiency. For example, if you notice that your team is spending a lot of time researching leads, you can invest in a lead generation tool that will automate this task.

Enhanced sales pipeline management

Your sales pipeline is the key to your success. It’s a visual representation of your sales process from start to finish. A well-managed sales pipeline will help you close more deals and achieve your growth goals.

Sales analytics can supercharge your sales pipeline management. By understanding your sales data, you can identify bottlenecks in your pipeline and make changes to improve your close rate. For example, if you notice that a lot of deals are getting stuck at the proposal stage, you can investigate your proposal procedures and figure out ways to streamline them.

Upgraded customer retention

Sales analytics can be used to identify patterns and make informed decisions that will help you close more deals and grow your business.

Using those strategies, sales analytics can be used to improve customer retention. By understanding your customers’ data, you can identify the most important factors to your customers and make changes to your sales process to keep them happy.

For example, if you notice that a lot of your customers are leaving because of long wait times, you can invest in solutions that will speed up the process.

The goal should be to have salespeople working on the right number of deals that will hit their quota. If a salesperson is working on too many deals, they will likely not be able to give each one the attention it deserves.

This could result in lost deals and decreased productivity. On the other hand, if a salesperson is not working on enough deals, they may become bored and start looking for a new job.

The best way to find the right balance is to use sales analytics. By understanding your data, you can make informed decisions that will help you optimize your sales process and achieve your growth goals.
 
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Sales analytics and business intelligence

Sales analytics and business intelligence (BI) tools go hand in hand. BI tools are used to collect, analyze, and report on data related to your business. This data can be used to make informed decisions that will help you improve your sales process and achieve your growth goals.

With a BI tool, you can easily collect data from all of your sales channels, including your website, CRM, and e-commerce platform. Once this data is collected, you can use it to create reports and dashboards that will help you understand your sales process and identify areas for improvement.

A BI tool will also allow you to track key sales metrics, such as conversion and close rates. By understanding these metrics, you can change your sales process to improve your results.
 

What to look for in a BI tool for sales analytics

When choosing a BI tool for sales, you should look for a tool that offers the following features:

The ability to collect data from all of your sales channels: A BI tool should be able to collect data from all of your sales channels, including your website, CRM, and any e-commerce platform you use.

The ability to create reports and dashboards: A BI tool should allow you to create reports and dashboards that will help you understand your sales process and identify areas for improvement.

The ability to track key sales metrics: A BI tool should give you the ability to track key sales metrics, such as conversion rates and close rates.

The ability to segment your data: A BI tool should allow you to segment your data so you can create targeted reports and dashboards.

The ability to scale: A BI tool should be able to scale as your business grows. If you plan on expanding your sales team or adding new sales channels, you should make sure the BI tool you choose can handle the additional data.

The features will vary from tool to tool, so take the time to find a BI tool that offers the features you need to improve your sales process.
 

The bottom line

Business intelligence tools are essential for understanding your sales process and making informed decisions that will improve your results.

When choosing a BI tool for sales, you should look for a tool that offers the ability to collect data from all of your sales channels, the ability to create reports and dashboards, the ability to track key sales metrics, and the ability to integrate with other tools.

If you can find a BI tool that meets these requirements, you’ll be able to optimize your sales process and achieve your growth goals. As you implement a BI tool, you should keep an eye on your sales metrics to ensure that you’re seeing the results you want. If you’re not, make sure to adjust your process accordingly.

By using sales analytics, you can make informed decisions that will improve your sales processes and help you achieve your growth goals.

Check out some related resources:

How a leading fashion retailer is using data to drive growth

Creating modern data experiences that help your customers succeed

Data Never Sleeps 10.0

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