Sales & Marketing Analytics
Sales and marketing analytics are essential to unlocking commercially relevant insights, increasing revenue and profitability, and improving brand perception. With the help of the right analytics, you can uncover new markets, new audience niches, areas for future development and much more. Let’s look at what I believe are the best and most important sales and marketing analytics that can help any business grow and succeed.
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.
Market size analytics
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.
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.
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.
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.
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.