In this post we look at solving the critical business problem of managing the customer buying cycle, and how tools — simple to advanced — can help sales people support their customers. In a repeat run rate business, customers are buying many categories of products and replenishing supplies and inventory on a weekly basis. With so many transactions from customer orders that reps must contend with, it is easy to forget about the customers who are NOT ordering, who are ordering less or not ordering the core high-value products any more. While we are a predictive analytics company and have a solution to offer here, we also explore with customers and prospects who are starting out this question: What is the right fit for their needs? Here are three options in the order of features, scale and cost, with pros and cons we’ve discussed with them: SALES PROCESS SOFTWARE Primarily focuses on mechanically guiding rep actions through a rules engine: “call today … email next week … follow-up in 3 days.” Stand-alone or blends with CRM. Pros: Most simple/easy to follow, ideal for a small team within a larger sales force. Cons: Does not consider customer attributes and responses or historical sales data, and is not predictive. MARKETING …Read More
Tag Archives: predictive analytics
Why you should put some sales tasks on auto-pilot
For any airplane pilot, the auto-pilot is a valuable companion. It can automate routine tasks such as maintaining altitude and direction so you are free to focus on the next tasks needed to reach your goal destination. Airplane auto-pilots can handle many tasks for the pilot. They can: Follow programmed climb and descent rates to pre-set altitudes Turn the plane to a specific direction Line up for landing on the runway Execute missed runway approach procedures, like climb away from the ground if the runway approach lights are not visible But amazing as auto-pilots are, aviators are aware that the auto-pilot does not fly the plane for you. You are still always responsible for reaching the goal destination. Business analytic tools – particularly those with predictive methods – can function a lot like an auto-pilot. They reduce workload, prioritize tasks and standardize best practices so you can focus on things the auto-pilot doesn’t do: continuously improving human performance, anticipating hazards far in advance, and staying ahead of the navigation tasks. Like auto-pilots, how can analytics contribute to sales enablement and productivity? REDUCE WORKLOAD: Pilots joke that flying is a long span of boredom followed by moments of panic. Perhaps like all the sales activity during the final days of the quarter? In flying, reducing mundane workload is a …Read More
Moneyball: Lessons for putting together a winning sales team
The movie Moneyball opens today to some great reviews such as this one at Sports Illustrated. I read the book by Michael Lewis soon after it was released and as a quant I found the story fascinating. What a great pair Billy Beane and Paul DePodesta were that came together at the right time! What I liked about the story was just like predictive analytics, all the statistics focused on solving one problem, and that is getting the best trade-off against a precise outcome. In this case, get the most wins with the least money — aka, Return on Investment. It was the book I would give to our sales managers saying “Like sports? Like making money? Here’s a book for you!” Here we’ll not review the book, the movie or Brad Pitt’s performance. Instead I’d like to share what we can learn about building a great sales team using analytics: DEFINE THE RIGHT METRICS It took a series of calculated steps to determine that wins were driven not by batting average but on-base and slugging percentage. How did they discover that? Set the outcome first and then run “simulations” of various predictors until one comes the closest. For sales managers, if exceeding quota is the desired outcome, …Read More
How predictive analytics adds value during & after selection of your CRM system – Part 2
Yesterday we posted the first tip of how to use predictive analytics to make your CRM system even more valuable. Today we share several more tips … Retain focus on business objectives The excitement of implementing a tool that solves basic operational problems is understandable. The front-end responsibility of reliability, inter-operability and security is clearly with IT. These challenges are significant. But it is important to go beyond the technology’s bells and whistles. By establishing a vision for analytics – metrics, measurement methods, forward-looking indicators and performance management – and incorporating these in the design, the rationale for the CRM system and its ROI can be validated. Through predictive analytics, business processes can be mapped and modeled, and benchmarks created for delivering quantifiable goals to the enterprise via the CRM system. For example, is the primary objective of your CRM to support lead generation, product penetration or customer retention? Based on your needs, predictive analytics can help develop appropriate forward-looking indicators, expected results and diagnostics of the results at all levels of activity – customer, sales people, products and operational areas. This will allow ongoing correction and calibration of your activity within the CRM system that maintains the focus on the business outcomes, not …Read More
How predictive analytics adds value during & after selection of your CRM system – Part 1
Customer Relationship Management (CRM) systems are the currency of customer-sales interactions. Effective, simple CRM software helps sales reps to focus on content of conversations rather than the mechanics of conversations, resulting in sales empowerment and productivity gains. A CRM system can be a boon to sales people. CRM helps overcome the technology hurdle of accessing information over disparate systems. CRM systems help improve collaboration within, above and across the entire organization, allowing the company to speak with one voice. And from a governance perspective, these systems help elevate the customer relationship from individual dependencies to an enterprise-wide strategic asset. When you add the potency of predictive analytics, a CRM system can be even more valuable. Leaders in analytics, sales operations and technology can fulfill their obligation towards sales empowerment by creating a cohesive approach that brings these disciplines together. How well we achieve this determines if a CRM system just gains basic acceptance, or whether it is fully adopted and even embraced by sales people who realize its benefits for themselves as well as for their customers. Here are guidelines to help make that happen: Consider a multi-stage deployment In the first stage of CRM implementation, deliver base functionality to the users so that their immediate, tactical pain points are addressed. This often …Read More