Marketing and sales teams are dealing with a deluge of data every day. Data from third-party sources, cookies, first-party sources, and so on bring so much to the table that it becomes difficult to navigate the amount of information in hand.
That’s where predictive analytics in sales steps in.
Predictive analytics in sales can be defined as the software tools and processes that peek through the available sales data (current and past) to present outcomes based on sales performance. The AI-based predictive analytics tools help sales teams to understand the customer better and organize sales databases.
Let us dive deep into the concept of predictive analytics in sales and how these tools help sales teams drive conversions in real life.
What is predictive analytics in sales?
Predictive sales analytics help sales teams to read and understand the data available. These tools offer insights upon which future actions can be taken. The decisions help your sales teams drive better conversions.
These software tools use AI and machine learning to collect data on your prospects, leads, and customers to study their behaviour throughout their buying cycle. While it appears simple, predictive analytics run several complex and time-intensive data processes in the background so that sales reps can focus on their tasks of connecting with prospects.
Role of predictive analytics in sales strategy
Predictive analytics undertakes the following tasks to improve your sales process:
- Data integration, which includes data capture, data analysis, and data warehouse creation.
- Predictive modelling, which includes sales analytics models, data modelling, and predictive sales data modelling.
- Dashboarding & reporting, which includes custom dashboards and reports, scorecards, and KPIs.
The above functions of predictive analytics in sales tell you how software turns an otherwise overwhelming amount of customer data into clear and easy-to-understand actionable insight. Due to which:
- Your salespeople can reach out to the best and connect with prospects easily.
- Predict business and market trends.
- Drive the goal-setting process for sales teams.
Predictive analytics in sales also help your salespeople to optimize their sales pipeline. Additionally, using predictive analytics tools for sales eliminates human errors and streamlines the process of collecting, storing, and analyzing sales data.
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Here are the top benefits of using predictive analytics for sales:
Generate and score leads
A pipeline with no leads is better than one full of poor-fit leads. Predictive analytics help sales teams tap into the current customer data and build customer profiles that are likely to convert. It saves time for the sales reps from spending time on bad leads.
Predictive analytics in sales also help your sales reps score their leads accurately by analyzing prospect data and behaviour. Such precise lead scoring allows sales reps to prioritize leads that are most likely to close.
Custom communication
When leads are scored accurately, sales reps can move further, segment leads, and draft custom messages for them. Predictive analytics in sales help salespeople strategize their communication as per the interest of the prospect. It also helps a sales rep identify accounts that need more nurturing to understand the offer. Predictive analytics in sales helps pinpoint the exact content strategies required to move the needle for buyers at any stage of the funnel.
It shortens the sales cycle and builds lasting relationships with the prospect.
Improved LCV
Predictive analytics in sales doesn’t just help to deal with future customers, but it can also make a huge impact on the value your current customers are adding to your business. With the robust tools, predictive analytics in sales help reps to identify upselling and cross-selling opportunities with the current customer base. All these things help you maximize lifetime customer value (LCV).
More confidence in launching new products
The time has gone when your sales and marketing teams relied upon hazy and dubious customer data. They no longer need to trust their gut about launching a new product. Thanks to predictive analytics for sales that have eliminated the guesswork from the sales equation.
Merging data from current and future customers, predictive analytics can tell you how a new product is likely to perform in the market.
Predictive analytics for sales is a game changer for your sales teams. However, to make the most of the technology, it is important to ensure that the data in hand is clean, accurate, and consistent. Although powerful, predictive analytics in sales is a technology that cannot bring results without human insight and creativity. Predictive analytics is here to boost the efforts of your sales reps, not to replace them.
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