Every business needs to make sales in order to prosper. Whether you’re selling products or services, you can use predictive sales analytics to drive revenue by unveiling and strengthening your weak points. Once you know where your system is failing, you can expand your efforts in that area to ensure you meet your sales goals for the current quarter.
Monitor Your Pipeline
Every sales process follows certain steps. It starts with getting a customer lead and succeeds when a sale is made. The process doesn’t end there as many businesses can monetize their existing customer base with repeated sales or add-on sales for other products or services. What’s most interesting is how far a customer is away from purchasing from you, and where they’re at in your pipeline. You need to know this to predict future earnings with some accuracy.
Many businesses have a long-term sales process. While people make quick decisions when they purchase groceries, they take a little longer to buy clothes. When you compare that with buying a house, planning a wedding, or going on a cruise, you’ll see that there is world of difference in the length of the sales process. For example, a company that sells cruise tickets must work hard today to get paid 6 months from now.
Identify Weak Points
If you have an accurate idea of what’s going on in your pipeline, you can identify weak spots. For example, if you have a salesperson on your team who can’t seem to move past a certain stage of the sales process, you can team them up with someone more experienced or invest in additional training. At the very least, you can make sure those leads don’t go stale by sending someone else in after them.
Using sales analytics can also help you determine how productive your employees are. While the ultimate buying decision rests with the customer, your sales team’s effort is critical. The more leads the team collects and vets in the beginning stages, the more potential customers you stand to gain.
An important part of doing business is keeping track of your cash flow. If you can reasonably estimate your revenues for the next quarter, you can plan which big expenditures or investments you want to pay for to grow the business. Predictive sales analytics is a useful tool for your business, because it offers those details that are difficult to keep track of.