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May 27, 2013
How Big Data Can Help the Sales Leader
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This is the wrong approach. Within the next three years, the best B2B sales organizations will use “Big Data”. It will answer two key questions their sales leader wants to know:
First, if you want to answer these questions, you have to start collecting the right data. Too often we see CRM systems completely misused by Sales Organizations. Opportunities are entered at the last minute. Customer information is out of date. The insight you get is only as good as the data entered. However, some are doing it correctly. Here are two Sales Leaders that are already getting valuable insight:
Will I Win This Deal?
Right now, most sales organizations predict deal closure probability in two ways:
One sales leader we know named Phil took a different approach. He threw out the simple stage percentages. Instead, he embedded a “Buyer Behavior” sheet on the opportunity within the CRM system. Reps had to complete and update it based on customer-specific actions. When compared to historical deals, an accurate opportunity forecast was applied following each interaction. Deal forecast accuracy increased tremendously. Here’s a generic Buyer Behavior sheet we use. This Buyer Behavior sheet extended throughout Phil’s department. His managers steered reps away from small dollar, low probability deals. This was not a static document. His reps uncovered more buyer indications to add to the list. They removed outdated indications that proved irrelevant. This prediction capability did not require huge spreadsheets or social media feeds. It just required the right data.
Will I Make The Number This Year?
Sales Leaders are frantically looking in the rearview mirror. They want to know whether they will hit their number. Every month and quarter is scrutinized. Unfortunately, by the time a clear trend emerges, it’s often too late.
Steve, a recently hired sales leader, wanted to stay on top of every deal. He had to solve two problems.
Steve instituted a change: All opportunities were entered by Sales reps, regardless of probability or deal size. He removed incentives based on win rate. He also installed a CRM app that tracked all opportunities and alerted him to anomalies.
One day, he sat down and opened up his browser. There was an alert. A key vertical had 50% less in the pipeline than the historical average. A quick meeting with Sales Reps and Managers revealed the industry was in turmoil due to government regulations. Steve had marketing create specific messaging and materials to combat it. He introduced a SPIFF to drive increase demand. These actions stimulated enough opportunities into the funnel to save the quarter. Because of new emphasis on data integrity and an investment in Big Data, Steve got his bonus. He wouldn’t have seen the early industry drop-off if he hadn’t purchased the app.
Big Data is a topical buzzword, but it can yield real results. Think back to the investment you made in your CRM system. Are you drawing all the information you want from it? It’s time to start reaping the full benefit of what it can provide. Download our Buyer Behavior tool and start tracking opportunities. You will learn which deals will truly close. It could be the difference between a year-end bonus, and a long explanation.
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