What Predictive Analytics for Sales is and How to Use It
Dec 29, 2020 ● 5 min read
Over are the days where you had to predict user behavior trends and follow gut feelings, hoping everything turns out as expected. Today, predictive analytics and machine learning have come to the rescue.
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If you're wondering what good these two things do, here's an example. Have you ever tried randomly cold calling to make a sale off? How often does it work? Typically, calling on a whim to strangers isn't the best approach.
What if you knew what's the best time to call based on predictive analytics? You could have increased your chances of sales significantly by calling or taking other actions at the right times. And that's what predictive analytics for sales is all about.
Not only is utilizing predictive analytics good for companies, but it's also better for people who get bombarded with random calls all the time. It's a win-win situation.
But, there has to be a caveat, right? Predictive analytics can't be all that, can it?
Actually, it can – we'll briefly cover some of the ways predictive analytics for sales is used and why it's so popular these days.
Some of the benefits of predictive analytics in sales
How often do you see salespeople just sit around and call dead-end leads all day long? The answer is something that predictive analytics directly addresses. Analytics can retrospectively monitor past purchases and product life to make data-based judgments.
For example, predictive analytics can tell when a particular customer will likely be looking for something new or different; or which type of item they'll probably be looking for.
These analytics can also give you a more in-depth look at the very colors and styles of the products that people are most interested in.
It may sound spooky, but for salespeople, predictive analytics can be extremely beneficial. As a salesperson, you're able to close sales more consistently. And frankly, this is nice for customers, as well – no more annoying calls about products you've got no interest in.
Predictive analytics also speaks to another issue within the sales world, which is the approach. First impressions are everything, and predictive analytics knows all about this.
If you need to come up with a perfect subject line in an email, select certain words for the content, or you're not sure which method of cold approach will generate the best engagement rate – check the analytics.
Predictive analytics can give you insights to optimize conversion all the way down to the tone of voice and combination of words or slides in a presentation.
In a world of data being put to use, you no longer need to call capriciously to unsuspecting and unwelcoming leads. You can start using predictive analytics' insights to employ tactics and tricks that actually work.
If you thought these analytics were too good to be true, it's correct – but don't get too upset there.
Predictive analytics is restricted to known information, meaning the analytics will be correct only at certain times. Okay, that's not terrible, is it? No, but it does mean you need people to manage the insights and data – you can't leave it up all to automation.
Most things a contextual, and data is as well. So, if you want to make the most of predictive analytics for sales, you'll need people who can make sense of the data. Those people should be able to tell if analytics are painting an accurate picture.
These people are typically not your average salespeople, but they are vitally important for a sales team that's trying to become data-driven with predictive analytics.