Sales and Marketing analytics helps any marketer gather relevant insights (business relevant) from the data supplied to him. Also, enables him to take commercially viable decisions to increase revenue and profitability and also working on improving brand perception. With good use of Sales and Marketing Analytics, one can identify new markets, new product ideas, audience niches and areas for future development. In order to keep it precise and systematic, I will try to enumerate the most important sales and marketing analytics that can help a company grow and succeed.
Important Sales and Marketing Analytics
Unmet need analytics
Business is all about meeting the needs of customers. Unmet need analytics is the process of uncovering whether there are any unmet needs around your product or service or within your market which you could meet to increase customer satisfaction and revenue. Useful tools for unmet need analytics include product reviews, qualitative surveys, focus groups and interviews. You could also use tools like Google Trends to help identify what customers are searching for.
Tip: It is now very cheap and fast to ask your customers questions. Create forums and online focus groups, or invite customers to like your Facebook page and join a feedback group.
If you don’t understand the size and potential of your market you can easily jump to conclusions about how viable your business proposition is. Market size analytics is the process of working out how large the market is for your products and services, and whether there is sufficient growth potential. The size of the market is measured in terms of volume (how many units sold), value (money spent in that market) or frequency (how often a product or service is sold). Useful data includes government data, trade association data, financial data from competitors, and customer surveys.
Tip: Just because a market is large doesn’t mean it’s profitable – especially if most of the customers that want a particular product or service already have one and are unlikely to want another.
Understanding demand is essential in order to remain competitive. Demand forecasting is an area of predictive analytics that seeks to estimate the quantity of a product or service your consumers are likely to buy. It goes beyond educated guesses and looks at historical sales data or current data from test markets. Analytic techniques such as time series analysis can be very useful here.
Tip: The data that you use for demand forecasting must be clean and accurate. If it is not then the results will always be skewed and could lead you down the wrong path.
Market trend analytics
Every business needs to know the direction its market is heading in. Market trend analytics is a process of establishing whether a market is growing, stagnant or in decline and how fast that movement is occurring. Understanding market size is important but knowing whether that market is trending up or down is also vital. To monitor market trends you can run business experiments or scenario analysis to see what the market would look like and how it would impact your business in either a growing, stagnating or growth market. Customer surveys and focus groups can also help.
Tip: Stay mindful of the external environment, such as changes to legislation and social expectations.
Traditionally we’ve been told that we need to understand our customers so that we know what they look like and can find more people like them. And whilst that makes sense there is another group that could be even more important – the non-customer! Non-customer analytics is about understanding what people who are currently not your customers think about your product, services or brand. By identifying who is not buying from you (and why), you can expand your market to include those individuals. If you want to know why people are not buying your product or service, you need to ask them: interviews, questionnaires, and focus groups can help.
Tip: It can be remarkably easy to get feedback from people who are not your customers using the power of social media.
Your business does not exist in a vacuum. Competitor analytics is important for marketing and strategic planning by identifying who your real competitors are, and how they are positioned in the market and in relation to your business. By understanding their strengths and weaknesses you can identify opportunities to exploit and threats to navigate. There are many ways of gathering competitor data, such as business journals and newspapers, annual reports, product brochures and marketing activity. You could even have an employee, friend or family member buy a product or service from your key competitors and assess their experience.
Tip: The most useful tip for competitor analytics is to do it! Sadly, most businesses don’t.
Tip: If you use pricing analytics to improve revenue, make sure you improve the value you add to customers that are paying a little more.
Marketing And Sales Channel Analytics
There are literally hundreds of possible channels and ways to market and sell your products and services. Marketing and sales channel analytics allows you to assess the different channels available to you and establish which are the most effective. It is likely you will reach different segments of your market via different channels but is it still good to know which ones are working and which are less effective. For each of your current marketing and sales channels and any potential as yet unused channels, you will need to set some conversion rate goals so you know what you want that channel to deliver.
Tip: Marketing and sales channel analytics is obviously easier online than offline.
Brands matter. Brand analytics seeks to determine the strength of your brand compared to your competitors. Your brand is more than just your logo and your commercial livery – it’s the look and feels of your products and what they represent to your customers. It’s important to really understand how customers perceive your brand as this will impact your decision making and strategic direction. You can source this sort of data anywhere your customers and potential customers are discussing your brands, such as customer service conversations, sales conversations, online forums, blogs, review sites, and social media.
All these and many more applications or types of sales and marketing analytics, give you so much raw data and this data and how you interpret it, is the key difference between a successful company and a struggling one. Albeit there are a good number of tools which can help you analyze this data and visualize it to make sure this data tells a story, the most basic and the most effective one for Sales and Marketing Analytics purpose is Excel. Companies are looking for Sales and Marketing professionals who have a good grasp of Data Analysis using Advanced Excel. So, in case you are looking for a new job in the field or are simply looking to enhance your skill and keep to update, the best nano degree course on Data Analysis and Visualisation with Advanced Excel is back with crazy introductory offer price. So, make sure you are a part of the data rush and are not left behind.