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9 Types of Sales Analytics to Promote Revenue
To understand whether a certain technique is beneficial for your business or not, you have to rely on sales figures. This way, you can monitor what works for your company and what should be modified or replaced.
It’s challenging to make smart and data-driven decisions if you have no metrics to guide you. Modern analytics tools like Tableau CRM (formerly Einstein Salesforce Analytics) or Revenue Grid are effective solutions that can assist an average business user to compile all their scattered data (in spreadsheets, reports, PowerPoint, etc.), analyze it, and lead the market. Read this guide on the importance of sales analysis, the existing analytics types, and how to apply it in your workflow.
Sales Analysis: Why Do You Need It?
A sales analysis is a thorough report that provides a deep understanding of a business’s sales efficiency, customer data, and income. A business owner can quantify and get powerful insights on metrics like ongoing and past sales, arising trends, and other factors that matter to them. Therefore, you can foresee and execute the right data-driven actions to enhance customer value and incoming revenue.
By conducting regular cash flow analysis, you can view your sales team’s performance from different perspectives and track their progression. The proficient tools can help you view the effectiveness of customer relations, demand for particular goods, and emerging market tendencies.
9 Types of Sales Analytics for Profitable Entrepreneur
It might seem to an accidental observer that all analytics are equally built but some types are more powerful than others. Consider nine important categories of sales analytics to make data-driven resolutions rather than relying on guesswork.
Sales trend analysis
The first type focuses on distinguishing patterns from sales data within a specific period. It can help you define micro- and macro- market trends. A micro-trend tracks a particular line of goods for a week or so; a macro-trend covers a range of products for months. Utilizing this method enables you to determine your business development towards sales goals and define growing or decreasing product demand.
Sales performance analysis
It measures the productivity of a sales strategy by tracking a sales team’s performance. This type often implies a financial analysis based on income generated from a certain department or timeframe.
This tactic covers:
- revenue growth;
- win rates;
- profit margins, etc.
Predictive sales analysis
Generated by predicting software, this type uses historical tendencies to foresee future risks and chances. It enables you to reduce threats and prepare teams to capitalize on evolving client demand. Predictive solutions can help you bolster conversion rates and determine opportunities to cross-sell or upsell, thus growing sales and revenue.
Sales pipeline analysis
This type monitors clients’ activities before they confirm a sale or drop their shopping carts. The analytics reports typically cover a couple of sales channels or breakdown interactions from a particular source. It arms you with a deeper understanding of how sales representatives should communicate with clients to upgrade conversion rates and finalize money transactions.
Product sales analysis
If your business offers several product lines, conducting a routine product sales analysis will help to determine positions that are lagging sales. Depending on the utilized KPIs, you can view product sales from the point of different demographics or client demand. You can use the results of reports to decide on the goods that should be suspended or promoted.
Sales effectiveness analysis
Well-known as sales management, it can help you monitor each executor’s performance to instruct them how to finalize a sale. This report implies studying generated metrics and patterns to promote powerful insights. A thorough sales effectiveness analysis can intensify client interactions to bolster sales rates.
A diagnostic analysis identifies the causes behind KPIs and sales tendencies to define how to implement further advancements. It enables you to determine obstacles and build actionable plans to improve your team performance and overcome pitfalls. With a regular diagnostic analysis in your business workflow, you can specify the obstructions to overcome and evolve your sales approach to stay competitive in the field.
Dedicating time to a prescriptive analysis regularly will help you consider emerging trends and generate insights on handling various scenarios based on the data available. This allows you to capitalize on future opportunities rather than investing in a sales strategy that might not pay off.
Utilizing marketing research can help you keep abreast of the client preferences and remain competitive in your business niche. It can also reveal the top competitors’ methods and statistics, such as pricing strategies, client interactions, and marketing efforts. With this data at your hands, you can thoroughly evaluate your business strengths and weaknesses to come up with an effective marketing strategy.
Optimize Your Business Effectiveness
By integrating effective analytical tools into your workflow, you’ll get actionable insights, optimize sales efforts to grow sales, income, and cash flow. These smart solutions can help you analyze large volumes of data, recommend specific strategies to boost your sales operations, executives, and managers’ effectiveness.
Since modern services offer more functions than dry numbers or dull paragraphs, you can visualize your data in the form of bar graphs or charts. Don’t hesitate to take advantage of these smart tools and be profitable.