The Importance Of Data in Sales in 2022 by@annettbrown

The Importance Of Data in Sales in 2022

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Annett Brown

Vice President of Marketing at Vendorland

It’s been proven time and again that people are more comfortable doing business with people they like on a personal level. So it shouldn’t be surprising that social skills are essential for success in sales. But the times are changing, and these days the precision of algorithms and data analysis are becoming important.

Modern salespeople rely on tools and sales intelligence to make sales. According to this LinkedIn survey, roughly half of all sales professionals currently rely on data to make sales.

Besides the increasing reliance on data collection and analysis, there is another change in the industry. Sellers can not get away with subpar communication with their buyers. They must understand their needs and consistently address their problems using a unique, personalized sales approach. To do this, it’s necessary to collect data about your potential clients and analyze it to gain insight into their expectations.

Find potential customers

Sales can be more effective if you can analyze the users, as well as their behaviors and needs. Salespeople can convert more frequently when they are selling to individuals who are willing to buy. Customers' past behavior can be analyzed to find the patterns that suggested their potential for making a purchase. Then, businesses can use this sample of users to find others with similar interests.

Find new use cases

Analyzing customer behavior can also help salesmen understand why people are buying their products. For some products and services, that may be obvious, but sometimes analyzing customer behavior can help you uncover new ways and angles to promote your product. In some cases, it could even help businesses develop a new product to address an existing need. This can be very lucrative and an opportunity to expand the portfolio of products.

Set the right price

Analyzing customer behavior can help businesses understand how much their clients are willing to pay for a product or service. They can use this information to maintain a healthy balance sheet while selling their products and services. The willingness to pay is not constant, it’s subject to change due to the emergence of new competitors, or other external changes such as changes in the economic situation. So It’s important to keep collecting the data to have the most recent information and price your products accordingly.

The BARC research shows that companies improved profits by 8% just by investing in data collection and analysis. A data-driven approach can be further beneficial due to savings in operational costs of the company, which are made possible by focusing the salespeople’s attention and resources on users who have a higher propensity to make a purchase.

Improve customer experience

The sales process in 2022 is much more different than it was even a decade ago. These days, people are using many different avenues and devices to buy products and services. Users expect a seamless experience across different channels. Understanding your users can help you provide a personalized experience across the entire customer journey. Businesses should aim to get as much information about their users as much as they can. It will allow them to provide the best possible customer experience.

Adjust marketing message

Collecting and analyzing user data is important for coming up with a marketing message and keeping it consistent on all mediums, digital or otherwise. You can also measure which mediums of communication are the most effective to increase the chance of making a sale. This can help marketing team to invest more in the type of campaigns that convert better.

Adapt to the new business landscape

Shopping online is nothing new to individuals. These days, even businesses are starting to make purchases online. This is an important change for corporate sales teams. Making sales online is very different from the traditional experience. The importance of material factors, such as the price, the quality of customer experience, and the specifics of the product are more important online than they are offline. Other factors, such as personal connection are losing importance. The sales process is changing rapidly, and salespeople need to use data to adapt.

How To Implement The Changes To Improve The Sales Process

Before you can improve your sales process using data, first you must make sure data collection and analysis is going smoothly. Business leaders should decide which department is going to be tasked with analyzing the data and getting actionable insights from it. In most companies, the IT department employs data scientists and machine learning experts who can devise the algorithms to analyze the data.

It's important to do more than just collecting the data. Managers should make arrangements for processing and presenting the insights so that everyone in the company understands the importance of the findings.

Here is how to manage data collection that actually translates to better results:

Establish a connection between objectives and metrics

Many companies can collect the data, but they can’t gain insights from it. This problem needs to be fixed, otherwise, companies accumulate too much data without making use of it.

First, companies must develop a list of objectives for achieving their business goals. Then they must find metrics that are actually indicators for meeting these objectives. This is necessary to connect the data with actual business goals and see how your sales could be improved by working on improving specific metrics.

Salespeople, who have years and sometimes decades of experience in the field, are tempted to believe that their own intuition is more reliable than the data. Managers  need to convince them that keeping track of metrics is worth their time, and working on improving these metrics can actually help them make more sales. To do this, they must communicate how the metrics, objectives and sales numbers are interconnected. It’s a good idea to design dashboards and use online tools to generate easily understandable reports and charts.

Sometimes people at the higher level are resistant to changes as well. You should aim to educate your managers on the changes to the sales process and get them on board with the new data-driven approach. Good managers can educate their subordinates on the value of data analysis for increasing sales.

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