3 Reasons Data Can Drive Effective Sales
There are numerous reasons that data can drive sales in business, and in many ways, companies overlook the use of compelling, meaningful data to help them maneuver the customer activity within their position. Today, I will be discussing the three most potent factors that any business can use to not only maintain their funding strategy but also to reach cash flow break even on multiple fronts. Firstly, however, let’s break a few terms down that can help you see the possibilities of growth.
Cashflow break even (CFBE) is a term used in business where you are not only paying operations cost, which includes employees, software, maintenance, and staff but also it means that you have begun to have a surplus of funds to move the bigger vision of the company forward. The majority of startups never reach this point because the lifespan of a startup is now at best 3-5 years. In that time frame, most startups fail on multiple levels to not only break into profit and balance their customer sources; they often have faulty idealism as to what it takes to be successful within their industry. Now, you can keep the company itself lean, but that adds stress to the infrastructure of the company if you are running too thin or cutting corners for projects. Where the CFBE model often faulters for most companies is that they limit potential income sources. To reach CFBE you have to begin to break away from other peoples money and start to become sustainable on your own, and most companies do not have the staying power to do so.
Many startups and young companies limit income sources for multiple reasons; it could be that they are used to investors bringing in their money so they can progress, or they are stuck on one financial model such as insurance payments, or smaller front-end payments. Diversification of payment systems is the lifeblood of a business, and knowing what sells and what does not is the key to gaining traction. Now that we have cleared up the definitions, we can now look into the models that will make it possible to use data to drive business to an even closer established milestone.
Firstly, you have to test the buyers model for your business. If you don’t know what the price points are for your market, then you will forever be guessing at how to convert customers into clients. You need to do research and establish a set goal of what price converts. Testing different specials and models is where many companies fall. Of course, you want to have profit, but you also fancy customer retention and customer acquisition balance. You don’t want to be fighting a battle on multiple fronts when bringing in customers who are looking for three things in a company. Those three things are value, trust, and dependability. If you can establish those at the start, then your company will always win in the end.
Secondly, measuring what matters and that is churn rate and customer feedback. There are many instances that customers give feedback, and it goes completely unnoticed, and that feeds customer retention rates to the point of causing them to leave due to lack of development. Development happens in two folds for companies, and that is listening and also showing progression. Markets shift rapidly, and without rapid innovation, most companies are outdated or left in the dust for two main reasons. They either strive to do the minimum or do too much spreading themselves thin. If you want to be profitable, you need to drive sales, trust, respect and show your customers that there is only one way to move forward and that is by using your services.
Thirdly, using quantitative and qualitative data should be the driving force of decisions over periods of 14, 30, 60 and 90 days. Often many supervisors and C-level employees are too quick to make decisions on not enough data or inaccurate data. Thus, they cut the companies ability to keep a steady foundation by creating more ends to manage while the staff feels undercut. These constant quick reactions can kill the company culture as well as destroy the ability for a company to progress due to not using statistical data through the proper lens. When analyzing data for any corporation, one must use quantitative and qualitative easing techniques to make decisions that matter. Without this, you become a slave to continually making quick decisions as a leader and often make the wrong decisions for long-term success.
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-Customer Support Team