We use sales analytics to measure and predict buyer behviour, but just how effective are we? How do we find the sales metrics that matter most?
Fortunately, the 2016 Insight Sales Best Practices study has done that for us.
The study uncovered some interesting insights from the use of analytics in sales performance. Findings were based after the analysis of sales data from international companies to find the metrics that drive revenue, and then the behaviours that were driving those metrics. From this process, they uncovered the top 12 behaviours and used those to distinguish between best-in-class companies that engage in all 12 behaviours, and compared their sales performance with the rest. The findings were astounding!
Out of the total population, only 8% of companies met the ‘world class’ standard – and they outperformed the rest of the business population by 21%.
Behaviours That Drive Metrics
- Alignment of sales and marketing
- Using social media guidelines
- Allocating the right resources
- Access to key decision makers
- Effective global account management
- Executive-level relationships
- ‘Why’ top performers succeed
- Process for ‘new hire’ productivity
- Sales analytics to measure sales performance
- Metrics aligned with strategic objectives
- Adapt to customer needs
- Manager’s time coaching
The biggest spread was in behaviour #9 – Sales Analytics to measure sales performance. This had to biggest spread between world class at 94% and rest at 34% – a 60 point spread.
It seems it is one thing to measure, and quite another thing to predict.
Sales forecast accuracy has traditionally been poor. Of those deals went through the entire sales process and were predicted to close, the numbers tell the story.
Using a won-lost-no decision performance outcome:
- Won – 47%
- Lost – 29-30%
- No decision – 22-23%
So, prediction is very, very difficult.
It supports one of our common assertions – that gathering data has no value, unless there are actionable insights communicated to decision makers and action takers.
For more information, read out ebook: Sell More And Have Your Customers Love You For It. It covers not only sales analytics related to revenue, but also analytics used in sales professional recruitment, sales pipeline management, and overall sales team management.
