I’m sure you think that the fast and efficient growth of a company is a myth, and you are partly right because, as in everything, hard work and perseverance are necessary. But, if your company is a B2B and you want to grow faster, this article on business analytics is of interest to you.
But, it’s not as easy as just betting on business analytics and starting to grow. There are numerous obstacles standing in the way. The rise of B2C is cornering the B2B space, this means that companies with strong capabilities in eCommerce analytics have invaded B2B sectors.
According to this study conducted by McKinsey, 64% of B2B respondents agreed on the need to rely on business analytics for success. For the implementation of this procedure, it is important to take several elements into account:
- Identify the objectives of the company
- Interpretation of the data.
- Translation of this information into strategies.
Once the company identifies its objectives and focuses all its departments on achieving them, it is essential to interpret the data and apply these results to the product or service. That is, once we know data about our customers, company and their needs, we can use this information to sell more effectively.
Data to be measured
In order to determine the sales team’s objectives, it is very important to be clear about the actions we are going to carry out. To do this we can divide the most relevant metrics for this department into three sections:
These types of metrics are used to check the status of the company. Thanks to these metrics we can evaluate the current state of the business in relation to the competition. This element is responsible for showing what the organization is doing. We can check its development by means of the following KPIs:
- Income growth.
- Market share.
- Gross profit.
- Customer satisfaction rating.
This element is very useful for employees because they can orient themselves and see where they should focus. For example, after determining a main objective, employees will do their best to improve in that area. To buy this type of metrics we can look at the following KPIs:
- Customer retention.
- % of new customers.
- Number of days of preparation for a new salesperson.
- % of target audience contacted.
This type of metric focuses mainly on quantifying the activities of workers. That is, the daily tasks of salespeople. These are the only metrics that we can translate into employee effort. Some of the KPIs we consult in this case are:
- Number of sales made per employee.
- % of employees using CRM.
- % of account plans completed.
- Accounts assigned per worker.
- Number of employees assigned per manager.
- Money spent on learning for each employee.
Calculation of profitability
In order to be aware of the profitability of each worker, it is important to take into account several data:
- Turnover per employee.
- Net turnover/number of employees.
- Profit per employee.
- Net profit/number of employees.
- Cost per employee.
- Social cost of the year/number of employees with salary.
- Profit/cost ratio.
- Divide the second element by the third.
Once we have this information we must compare the data and study the results. In this way, we will know the productivity of each employee and the advantages and disadvantages of each element. In addition, to calculate the productivity ratio in hours we perform the following calculation:
Net sales/ Total working hours
Behaviors linked to success
This is the first step for growth. Once we have decided to implement business analytics in our company we must agree among the teams what is the greatest business value and then focus all efforts in those areas.
It is natural that not all business analytics tools will fit your business. Therefore, it is important to experiment until you find the right one. This way, we increase growth and reduce failures.
Early identification of problems can help the company to avoid an irreparable downfall. In this way, the business analytics tool can encourage rapid and positive changes in different areas of the company.
It is natural for companies to look for the best workers, this will grow the business. But what are the best analytical talents? This sector is today one of the most studied because thanks to the information obtained we can improve our company and meet the needs of consumers.
Scientists and engineers are between 10 and 50 times more productive than business analytics workers. Therefore, it is important to consider them in the recruitment process. A study conducted by an energy company helped to understand the interest on the part of scientists in this area.
If you are looking for workers for your data department, do not hesitate to consider this profile because it can guarantee great success. The creation of this department should start with an analysis leader and be completed with analytical scientists, engineers and translators.
Herramientas de datos
The implementation of tools, algorithms and data architecture will depend on the size and stage of your company. If you have just launched your data analysis tools, you will not yet have a lot of information and you will not have been able to implement changes.
However, if you already have a tool implemented in your business, you will be able to visualize the errors to be solved, the elements to be encouraged and the objectives you want to achieve.
Thanks to this type of applications we obtain a lot of information to make changes in our strategy or even set new goals that will help us to grow exponentially.
Here is a short list of some programs that you can apply to your company to improve business analytics:
Once we have the analysis tool implemented, we must give access to the sales teams so that they can adapt to the changes from the very beginning.
This process should be a team effort by both the data department and the sales team. Thanks to this relationship, the sales force will have information about the needs of the
When this relationship is established, data department leaders should use the data obtained to shape the thinking of the sales force. Ultimately, once data tools are in place it is paramount that analysts focus on obtaining useful data for the company that can benefit them in creating new products, developing company growth and solving problems.
Implementing data tools will help you improve and get closer and closer to your customer. If you do not have any of them yet, do not hesitate to try them until you find the right one for your company.