What is Sales Analysis?
Sales analysis is achieved by extracting data to evaluate the performance of your sales team. From your data, you can understand:
- sales problems
- market opportunities
- activities that generate revenue
Regular analysis of CRM sales data in sales management provides a picture of the products your customers are buying, from which sales rep., etc. All these aspects allow you to optimize the sales process.
Identify your customers! Your salespeople should spend more time interacting with
- the most profitable customers
- the customers who are loyal to your company
Based on what you intend to achieve, you can try to evaluate parameters such as improved success rates, revenue growth, etc. You can work on the gaps to get your business back on track, “where you need to be”.
The success rate
Monitoring success rates in the sales process is very important. For example, if you have an overall conversion rate (from “created deals” to “won deals”) of 5%, it means that 95% of your deals are lost somewhere in the sales pipeline.
The history of each opportunity in your CRM software helps you identify and remove bottlenecks in the sales process. If 50% of the deals are lost, for example in the “Send presentation” stage, there is probably something in this activity that is discouraging the customer.
Try to understand what to change in the sales approach, probably the presentation is too general and it is necessary to send something more personalized, perhaps after a telephone interview.
Reasons why you lose Deals
Collecting the data behind lost deals is a very useful part of the sales process. Understanding the reasons why a customer has been lost is necessary in order to make business decisions in the future.
Identify inefficiencies in your team
By analyzing the team’s data you will be able to understand where things in sales may not work as they should.
It could be because you’ve assigned too many deals to your salespeople and aren’t able to handle them all, or you have a salesperson who is working a lot of good leads but can’t convert them to sales.
If you manage a large sales team, your CRM might give you good reasons to consider a different organizational structure. For example, if you notice that 70% of a specific activity is not completed, you might want to dig deeper to understand why. There may be too many activities or parts of the process is taking up a lot of time, which could mean it’s time to hire.