Getting Started with Sales Analytics and Key Indicators
Oct 20, 2020 ● 3 min read
Numbers run the sales game. And with the rise of data, sales analytics has taken a central role in the sales process. Sales analytics can give lots of insights. These sales teams understand and make more effective decisions to boost performance.
Table of Contents
- What is sales analytics?
- 3 Benefits of sales analytics
- A few critical indicators in sales analytics
- Choosing the right tool to start
So, what drives decisions for your sales team? And how do you ensure that the right ones are being made?
It would help if you didn't make decisions or moves that alter sales operations on a whim. Neither you should base your decisions on gut-feelings or quick Google searches. Instead, you should do your research and make data-based sales decisions.
Implementing sales analytics for a company can be a tall task. And we'll cover some of the key points you should know to get started.
To do that, we'll need to answer a few questions. What exactly does sales analytics mean? Are there actual benefits of using sales analytics? What are the indicators used in sales analytics? Which platform should I use for analytics reports?
What is sales analytics?
As implied by the name, sales analytics is the use of sales data to gain actionable insights. This is to improve performance and forecast future sales trends.
In other words, companies use sales analytics to track information from previous campaigns. This way, you can replicate the success with potential failure minimized.
Sales analytics methods should be aimed at improving sales performance.
Analytics for sales is also used as a way to keep sales reps and business units accountable. This can lead to more optimal sales performance, which leads to increased revenue. In fact, a survey by McKinsey found that fast-growing sales teams use analytics more effectively than others.
Using analytics reports for sales data can enhance sales management.
But, with great data comes great responsibility. That's why choosing the right metrics and tools for sales analytics can lead to growth opportunities.
3 Benefits of sales analytics
Primarily, sales analytics deals with increasing performance, optimizing sales activities, and improving accountability. Apart from these, there are quite a few potential benefits in using analytics in sales.
For the sake of brevity, we'll cover 3 of them.
Identifying Market Trends
Understanding market trends is vital in sales if you want to compete and meet customer needs. This is where sales analytics platforms like Whatagraph can play a part.
Real-time data can help you understand important market trends. For example, whether or not you need to start doing more marketing pushes during Easter. Or if you need to make bigger sales during the Summer.
Whatever the trends are, identifying them can help pinpoint opportunities. And these opportunities serve as advantages over the competition.
Accessing sales data and generating accurate reports from anywhere is useful for most.
Sales analytics software like Whatagraph can give you access to features like this. The software allows you to track real-time sales activity. Whether it be on Google ads, paid marketing campaigns, or whatever other platforms you use.
This gives you increased flexibility, access, and efficiency. All of which are important in competitive business environments. Whatagraph's visualized and actionable reporting interface can simplify your decision-making process. This can ultimately increase performance.
Finding Missed Opportunities
Actionable sales analytics platforms can help identify missed opportunities.
This type of benefit is often overlooked. But when missed opportunities are accounted for and adjusted for, they can bring in sales.
It's important to have an analytics tool in place that can depict missed opportunities or untapped opportunities.
A few critical indicators in sales analytics
Real people make sales, right? Well, most of the time.
This is mind, key indicators, also known as sales metrics, should focus on inspiring action from sales teams. This means the indicators should focus on driving sales upwards. It sounds easy, but a lot of times, it's a little more tricky in practice.
Here are a few examples of frequently used indicators that do just that.
Growing revenue is supreme in sales. This is what it's all about. And having a simple metric showing the growth of sales will have the team on their heels. They will be looking for answers if the numbers aren't there.
Salespeople often use these targets to track current performance and compare them to their goals. You can define this metric as whatever your objective is.
Lead Conversion Rate
Insights like lead conversion rates help keep sales and marketing teams aligned. Customer journey conversion analytics allows for teams to optimize performance. This enables a steady improvement in customer experience.
Sales per Rep
The name of this metric is a giveaway. The make-up of your sales team is everything when using sales analytics. This sales metric tracks the number of sales per rep.
Sales by Region
Another metric to better understand your customers is sales by region. Tracking this metric will gives insights into the areas where you do business.
Average Purchase Value
Unsurprisingly, increasing the average purchase value increases average revenue. This is a great metric to track historical performance and forecast future performance.
Choosing the right tool to start
There are a plethora of tools on the market that offer dashboards and sales metrics. But getting the right tool can separate you from the competition, as you may have guessed.
A great way to represent data and results is through dashboards and reports. These dashboards should be actionable, visual, and understandable. Some companies choose to roll with more complex free options. These include Google Analytics or even Excel and Powerpoint.
But these are grueling, both in terms of time and understandability.
Others choose to link their data to reporting dashboards like Whatagraph. If you want to get started, here's a free 7-day trial from our team to yours.