Sales analytics: 3 hidden benefits you didn’t expect
It’s not surprising that sales analytics has become so popular. For as each of us increasingly sees how sales analytics touches our lives as consumers—just think of Amazon’s recommendation engine, for instance—the urge to apply the same technology in business is difficult to deny.
And once implemented, only rarely does sales analytics disappoint. The usual complaint is that a given sales analytics engine isn’t powerful enough—not that it doesn’t deliver.
Even so, companies contemplating an investment in sales analytics might be surprised to learn that sales analytics’ most obvious benefits aren’t the only ones on offer. Get it right, and sales analytics also delivers three highly attractive hidden benefits.
Which are? Read on.
Sales analytics: delivering better ratios.
At its simplest, sales analytics provides insights into hitherto unregarded ‘open goal’ sales opportunities.
Such as customers who usually buy this product are also often quite interested in buying that product, for instance. Or when buying a certain product, they might also be interested in a ‘bundled deal’ that provides—say—aftersales service, or an extended warranty, as part of the package. Or when ordering on a Thursday, customers are more likely to be prepared to pay extra for premium shipping, in order to take delivery before the weekend.
And essentially, there’s no need to take on extra sales staff to win these extra sales. And no need to expand into fresh geographies, or open new sales offices.
You’re getting more sales, but from the same sales force, and the same selling infrastructure. That’s the power of sales analytics.
Sales analytics: more business from your best customers.
Which are a business’s best customers? Loyal, repeat customers who deal with you repeatedly? Or new customers that you have to go out and expensively acquire via marketing campaigns and advertising?
Put like that, it’s obvious. But put another way, if sales analytics can help you sell more products and services to customers you already deal with, not only is there the option of spending less on marketing and advertising, but there’s also—quite possibly—no need to aggressively discount the prices at which you sell those additional products and services.
Because you’re selling to customers who already know and value you as a business, and who don’t need incentivising to deal with you.
Does that sound like additional profit margin to you? It does to us. That’s the power of sales analytics.
Sales analytics: price optimisation becomes reality.
But let’s just extend that thought a little further. Because sales analytics can also shed a lot of light on price optimisation strategies.
One example: by studying customer behaviour, and carrying out customer segmentation analyses, it’s possible to not only raise overall profit margins, but offer your very best customers pricing deals that are more likely to ‘lock them in’ to you as a preferred supplier.
Another example: by bundling goods and services together, it’s also possible to craft margin-enhancing bundled pricing deals—just like those that retailers dangle in front of us when we shop in their stores as consumers.
Without the data to design such strategies, you’re aiming blind. But with the data, you’re targeting opportunities with pinpoint precision. That’s the power of sales analytics.
Cloud BI: your rapid implementation sales analytics enabler.
Roll it all together, and the proposition on offer from sales analytics is clearly compelling.
But here’s the bad news: with traditional-style ‘on-premise’ Business Intelligence and sales analytics projects, you could be over a year away from seeing any results. Not to mention perhaps £100,000 poorer.
With Cloud BI, and Cloud sales analytics, it doesn’t have to be like that.
Delivered as a service, for a monthly subscription—and leveraging the Cloud, instead of expensive on-premise servers—sales analytics could be just weeks away. As a little as eight to ten weeks, for a typical Matillion customer.
That’s the power of sales analytics—from the Cloud.
To find out more about the importance of sales analytics in your business, download our free eBook today.