Correlation does not equal causality - KPIs in Sales
Watch your step! Sales managers and managing directors in B2B confuse correlation and causality.
Data-based decisions in sales are not always ad-hoc better than intuition. The reason for this is the frequent confusion between the terms causality and correlation.
How nice it would be if managing directors or sales executives regularly knew why something happened. Why individual customers churn; why one product does not sell well or sells more than others; why in the end a promising sales lead does not become a customer, regardless of how good our salespeople are.
Why is internal data considered more reliable and easier to collect than external data?
Simply explained: Why internal data is better for predictive analytics in B2B.
Companies use sales forecast to make business decisions. They also employ them to predict future developments better than their competitors. However, reliable predictions are rare, and sales teams try to play a safe card by applying external forecasts. Companies are nevertheless better off using their in-house data - with predictive analytics.
"There are three types of lies: lies, damn lies, and statistics." This quote from Benjamin Disraeli, a British statesman and 19th-century novelist, fits the situation in companies very well.
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AI Data Visualization for Advanced Sales Analytics
Understand your sales data and achieve a much higher business success through an intelligent visualization from Qymatix AI.
Sales Analytics Visualization
“A Picture is Worth a Thousand Words.” That is how Qymatix works. With only one sales data visualisation you can directly access all critical information available at any time: where are the Low-Hanging Fruits, Cross-Selling Quick Wins, Customers at Risk of Churning and Price Setting Potential. Sales managers are now able to implement and track the most appropriate sales KPI and to measure the overall status of existing customers, segmented turnover and profitability and new customer acquisition.
Market Basket Analysis in Excel - Example for Cross-Selling in B2B
One Useful Example of Predictive Sales Analytics Using Excel
Cross-selling is the practice of selling an additional product or service to an existing customer. Indeed, B2B companies define cross-selling in general and cross-selling analytics in particular, in many ways and with many names. One common naming used in retail or distribution is “market-basket-analytics”.
Most of us are familiar with cross-selling from our experience as online consumers. “Customers that bought X also bought Y” or “related products”. E-commerce websites make product suggestions based on a market basket analysis. The list of the possible suggestions is also known as “associating rules”. Marketing practitioners talk about “Buying Propensity”.
What is a Predictive Score Model in B2B Sales? How Can You Create Yours?
A predictive score model is a formula to calculate a probability.
There is a 70% chance that you will read this entire article. How do I know this? Because I used a predictive score model. The score is the probability of you reading to the end of the article (or one minus the likelihood that you will not – the exact opposite).
My example in the paragraph above is a well-known application of predictive analytics in marketing. The most common examples in business-to-business (B2B) sales are lead scoring, churn (or customer attrition), cross-selling, and pricing.
New Partnership between Qymatix Solutions GmbH and ORBIS AG
Karlsruhe, 10.02.2022. Qymatix Solutions GmbH cooperates with ORBIS AG. ORBIS supports medium-sized companies as well as international corporations in the digitalization of their business processes. The goal of the partnership is to accelerate the adoption of new AI technologies with the Qymatix Predictive Sales Software. Artificial intelligence "out-of-the-box", instead of long AI projects.
How Predictive Sales Analytics Works and Why It Matters
AI-based programs help your sales team to sell products are services more efficiently. The programs make predictions about your customers' behaviour: who will churn? Who might pay a different price or buy an additional product?
The technology behind this is called "predictive analytics" or, in sales terms, "predictive sales analytics".
Why is Predictive Sales Analytics a “Must-Have” to Increase Sales Productivity in Business-to-Business?
Predictive Sales Analytics is a Game-Changer in B2B.
Productivity in business-to-business (B2B) sales is simply defined as the output rate of a sales team, considering all direct costs and performance. Two trends that are drastically affecting sales productivity are sales analytics in general and predictive sales analytics in particular.
Sales analytics is since long an efficient method to measure what is working and what is not working in sales. This is then used to compare performances in order to increase revenues.
Study: Automated, Artificial Intelligence (AI)-based pricing versus Human-based pricing in B2B
To further explore the potential of automating the B2B salesperson’s pricing decisions.
You'll learn the results of a field experiment conducted by Yael Karlinsky-Shichor (School of Business at Northeastern) and Oded Netzer (Columbia University) to explore "Who makes better pricing decisions in B2B settings - humans or machines?"
We now know that algorithms and artificial intelligence are part of our daily lives. The general trust in systems like Google Maps is relatively high when looking at the number of users utilizing the platform.
Nevertheless, it often happens that we see a route suggestion that causes us to frown and think, "That seems weird to me. I don't think that's right."
How To Use Artificial Intelligence for Sales Planning with Qymatix
Qymatix Predictive Sales Software is one of the most effective machine learning tools for sales planning. Artificial Intelligence for your business success.
Why should you use Qymatix Software for your sales planning? We give you three reasons: 1. You can focus on the most important sales metrics. 2. You can accelerate your B2B sales cycle. 3. Your sales team can work more efficiently and save resources through data-based prioritisation.
How does Qymatix Sales Planning Software work?
Qymatix is a pioneer in predictive sales analytics and a leading provider in this segment of sales acceleration tools. Qymatix helps B2B companies transform data into actionable insights that enable profitable growth.
Using Qymatix AI-based Predictive Sales Software, sales leaders can now analyse and strength their pricing strategies, find cross-selling opportunities, predict customer churn and rapidly expand the sales planning capabilities of their legacy CRM and ERP systems.