D099 Module 5 Study Guide

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252 term bn_ How does sales analytics using CRM data contribute to a company's sales practices, strategies, and management decision-making It helps with being able to know why customers bought something or did not.It helps with focusing on refining and developing strategies for improving sales performance in both the short term and long term Sales Analyticsthe process of generating insights from sales data to identify, model, understand, and predict sales trends and forecasts from large data sets.Two significant roles sales analytics plays for a sales team Internally, it helps segment customers and prioritize targets for more efficient outreach.Externally, it validates the company's value proposition to customers, showing whether what the sales team offers aligns with what's delivered.By analyzing data, the organization can understand if customers truly find value in the product or service." The four steps in the sales analytics process or workflow. 1. Collection

• Processing
• Analysis
• Interpretation

CollectionThe business objective (what you want to measure, what question you want to answer, or what methods will be used to collect the data) is determined and the actual data collection using the prescribed methods performed ProcessingData is sorted and organized for analysis AnalysisData is organized into charts and graphs to facilitate visualization and analysis

InterpretationData is used to guide business decisions, to provide information as to the next steps, or to inform a best course of action the four levels of sales data analytics1. Descriptive Analytics

• Diagnostic Analytics
• Predictive Analytics
• Prescriptive Analytics

Descriptive AnalyticsUsed to understand what happened Valuable for uncovering patterns that offer insight.Diagnostic AnalyticsUsed to understand why something happened helps understand which decisions impact performance Predictive AnalyticsExamines past behavior and patterns to predict the future build confidence in the estimates that inform their choices Prescriptive AnalyticsUsed to answer specific questions gives you a laser-like focus to answer specific question Describe the steps in the workflow for prescriptive analytics

• The data are acquired and processed.
• Hypotheses are formed after running the data through analytical software.
• Initial actions are taken while hypotheses are being tested.
• Hypotheses are proven or disproven, and prescribed actions are driven by the

results List and describe the three Vs of Big DatVolume Velocity Variety VolumeAssociated with the amount of data available that includes anything from customer transactions to scientific data VelocityThe speed at which data are being sent and collected VarietyThe various data forms Internet of Things (IoT)a system of devices, appliances, and machines that are interconnected through the internet and can identify themselves to other devices and networks.how does (IoT) relate to big data and data analytics? It gives more opportunities to generate extensive amounts of data that can be gathered and analyzed in detail.

Three ways that Big Data can help organizations address business activities

• Product Development- Big data helps companies like Netflix and Amazon

predict customer demand. They use past and current product characteristics to create predictive models for new offerings.

• Customer Experience- In today's competitive market, understanding customer

experience is vital. Big data allows companies to gather data from various sources like social media, websites, and calls to enhance customer interactions. This leads to personalized offers, reduced customer loss, and proactive issue handling.

• Operational Efficiency- Big data is crucial for analyzing production, customer

feedback, and returns. This helps in reducing downtime and predicting demand." How can organizations utilize CRM data and analytics to segment their customer base and target specific customer profiles Organizations can analyze patterns and trends in data to create market segmentation. The customers can then be segmented into different groups 360 View of Customera process of collecting aggregated data from various customer touchpoints for a complete understanding of the customer and to guide interactions with the customer How does sales data analysis is used to inform sales practices in Lead Generation?CRM analytics tools help predict potential buyers, identify best contact channels (email, social media, phone), and determine effective discounts. This gives a 360- degree view of customers.How does sales data analysis is used to inform sales practices in Lead Scoring?Ranks and qualifies leads based on interest and compares data with existing

clients. Sales teams save time by focusing on the most suitable leads. Steps:

Define customer characteristics, ideal customer traits, create a point system, and score leads.How does sales data analysis is used to inform sales practices in Customer Lifetime Value (CLV) ?CLV is the profit from a customer over time. Focus on upselling and cross-selling to increase CLV. Higher CLV means more revenue without added investment.How does sales data analysis is used to inform sales practices in Forecasting and Planning?Sales forecasts predict future sales for planning inventory, costs, and business decisions. They're based on past data, industry trends, and economic factors.Forecasts help manage resources, cash flow, and attract financing." Explain the concept of integrating a CRM system with other organizational systems and processes.How does this integration foster efficiency, collaboration, and better customer experience It can bridge multiple departments of an organization together. This will help the departments work together to bring the best experience for customers CRM dashboardA visual display of metrics How does CRM dashboard impact the behavioral expectations of salespeople?This creates greater visibility into the sales results and creates greater accountability.Describe the four tools supplied to sales managers by predictive analytics to help them set objectives and priorities.

• Predictive Lead Scoring
• Predictive Forecasting
• Predicting Customer Attrition
• Sales Performance Monitoring

Predictive Lead ScoringIdentifies where customers are in the sales process, helping prioritize leads for higher closure rates.Predictive ForecastingUses past sales and current pipeline data to predict outcomes, guiding the team on which deals to focus on.Predicting Customer AttritionAlerts managers about potential customer loss based on satisfaction and usage trends. This helps with retention strategies Sales Performance MonitoringHelps customize coaching by identifying weaknesses, measuring future events, and guiding salespersons to achieve targets.