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Keeping track of your CRM activities is the first step to improve your sales processes. The earlier you start measuring data, the more information you will have to support your decisions.
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
- forecasts
- 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, customer satisfaction, improved productivity, cost-effectiveness, increased market share, etc. to determine the current state of your business.
Once you have identified the areas of improvement, you can work on the gaps to get your business back on track and to the position “where you need to be”.
You should also analyze the effectiveness of the measures you take and make necessary changes or adjustments to ensure that your business continues to flourish.
The success rate
Monitoring success rates in the sales process is a critical part of successful business management.
Knowing which sales tactics are working, and which are not, can help inform strategic decisions that can improve overall sales performance.
In fact, by tracking success rates across the sales process, business leaders can identify areas of improvement, gain insights into customer preferences and buying behaviors, and create more targeted campaigns that are better aligned with customer needs.
Additionally, by tracking success rates, businesses can ensure that their sales team is following best practices and making the most out of their time and resources.
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.
Therefore, thanks to the history of each opportunity in your CRM software helps you can identify and remove bottlenecks in the sales process.
If 50% of your 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 an invaluable part of the sales process. By understanding why a customer has decided not to purchase a product or service, businesses can modify their strategies to better meet customer needs.
Additionally, analyzing this data can provide insights into customer trends and preferences, as well as potential areas for improvement in the sales process.
With this information, businesses can make more informed decisions that can help them increase sales and profitability in the long run.
Identify inefficiencies in your team
By analyzing the team’s data, you will be able to identify any areas of sales that may not be performing as expected.
In fact, you can then use this data to make informed decisions about how to improve sales performance, as well as pinpoint any areas that may need additional focus or resources.
Finally, this deeper understanding of the sales process can help you to create strategies and tactics that are tailored to the specific needs of the organization and its target market.
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.