Category: Sales Optimization

The Power of Sales Analytics

sales analytics with AlteryxThe Power of Sales Analytics is something every serious sales professional must understand. Sales Analytics is the lifeblood of every sales team, big or small.  The data-driven marketplace means teams must leverage their own data, 3rd party data, and do the digital due diligence to succeed.

The Power of Sales Analytics

There many ways which analytics drives success on the sales team:

  • Team Performance
    • well timed performance reports and scorecards across the sales hierarchy is a must
  • Productivity Insights
    • find out how many prospect touches it take on average to develop an opportunity
  • Account and Prospect Insights
    • who are you selling to, what solutions do they need, and where can you reach them
  • Correlation
    • find out the messaging and market relationships which drive your prospects
  • Marketing ROI and Messaging
    • what role does marketing play in leads, opportunities and revenue generation
  • Compensation Design
    • are you reps fairly compensated for the behavior which drives revenue
  • Territory Configuration
    • have you optimized your territories and set appropriate quota

Enabling Sales Analytics

Even before you can take advantage of the above, there are a few steps which the team must beholden before a true analytics program can succeed. These include:

  • Best practice data capture with your CRM (Salesforce.com, Miscrosoft CRM, vTiger)
  • Understanding your sales journey and converting into stages and sales milestones
  • Establish a data-driven culture – reps, managers, and senior leadership must trust the data
  • Use the data to define compensation plans and territory configurations
  • Establish a regular pattern of data cleansing – your reports are only as good as the data you put in

With these concepts in mind, you can leverage the power of sales analytics.  We capture data everywhere. Not leveraging the data is a big mistake which is easy to make.  Whether you bring a team on-board internally, or outsource to a consulting like Spiral Analytics, there is no excuse for missing the power of sales analytics.

Getting Started with Pipeline Management

pipeline management the easy wayHitting your quota number at the end of the quarter is all about how you manage your pipeline.  This post is to give you an understanding of how KPIs play into pipeline management.

Know Thy Territory

First, understand your territory and the quality of your accounts.  Start by putting your accounts into three categories: A, B and C.  A’s are prime accounts, whereas C accounts are not likely to buy/engage.  Account scoring is a topic we will cover in another post. You also might be interested in our “Customer Scoring” course once it is released.

Analytics of Pipeline Management

Beyond knowing your quota number and who is in your territory, there are a few key performance indicators (KPIs) you need to track to help make more sense of your quota number and your pipeline.  These include individual sales rep metrics include:

  • Average Deal Size
  • Average Sales Cycle (SQL to Close – depends on playbook)
  • Lead Conversion Rate
  • Average Close Rate

Using these four KPIs and doing your own calculations, you can break down your quota number into something that makes a lot more sense. “Do the math” as we say and your quota number is a template for opportunities where you plug in your accounts.  The math tells you how many deals you need.

As a sales analyst, it was interesting to see which reps looked stressed when they saw their quota for the first time versus the reps who were calm, cool and collected.

We are not going to walk you through the actual math in this post (I know, sorry, but this post is teaser), but we will give you this quick tip:

  • Saalun Quick Tip: About half of your quota number should already be nearing close in your pipeline as you start the quarter.

Early Preview

Knowing the who’s who of your territory and doing a little math behind your number makes pipeline management a breeze.  Of course you have to build relationships and sell, but knowing the math is a huge step ahead.

As we get started, we encourage everyone to signup for our early preview mailing list.  Saalun will be offering more info as our courses are ready to launch and discounts on memberships. Join here.