How customer behavior data can transform your sales performance

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Nowadays, Business Intelligence has become more than just a ‘nice to have technology’ – it is mandatory for companies that want to generate revenue growth. In the changing landscape of the past year, it is crucial to analyze your data, track your performance and constantly adapt through new marketing and sales strategies.

Conducting common customer behavior analysis plays a vital role for many functional areas of a business. The data regarding client interaction represents the most solid base that you could use to build sustainable strategies that are both performing and cost-efficient. Besides that, using BI tools to understand patterns helps you decide where and how to better advertise products, and predict sales trends.

Regardless of your company’s industry, if you want to transform information into actionable insights for your organization, start by asking these questions:

  1. What are the market trends? What are people buying?
  2. Why? Is there a trigger for the changes happening in the industry? Can you take advantage of it?
  3. How can you adopt trends and integrate them into your strategy?
  4. Can you improve your products/services, or are you ready to launch new stuff?

Here are the top KPIs you should track to be able to predict your clients’ preferences and plan your next moves:

Transactions per Customer

This is an extremely important metric because it shows how much customers are spending when placing an order on the website or in-store. Higher values mean people buy expensive products, or that they purchase more goods at once.
All data-driven businesses should keep track of this value, as it shows the efficiency of sales strategies and influences directly their pricing policies. Moreover, if you can establish the average amount spend across each channel, you will be able to understand which of your actions bring customers closer to your business and which channels actually convert.
By learning how much customers spend on each purchase, you can forecast your sales and have a better cash flow. Besides that, you get to know your audience, which results in better targeting, and see how much they are willing to pay for your products. This means you can adjust pricing policies to fit customers’ expectations and possibilities. However, the ultimate goal should be increasing the AOV, because when you improve this metric, you can have a direct impact on sales and revenue growth.

Average Sales per Customer

This is a more specific KPI, which will help you make an in-depth analysis regarding each product or category in particular. For instance, you will be able to see how much of the total revenue is spent on average on products from the “summer collection”.
The KPI will show you what products are the most popular among customers and which ones bring the most revenue. Do your customers buy standard products, or are they more driven towards premium items? Are seasonal campaigns successful? Do people buy more of the same item per purchase?
Analyze and find the answer to these questions, then decide what products are worth investing in, so you can adjust your marketing and sales strategies accordingly.

Sell Through Rate

The sell-through rate shows how much of your inventory is sold, compared to the amount of product you had in the first place. Briefly put, it is the ideal KPI if you want to refine the supply and demand process. It is also a great financial indicator for understanding inventory turnover and supply costs.
Therefore, if you are left with too many products within a certain period, then you should find out where the problem is and rethink your advertising strategies, placement choices, target audiences and others. If you are sold out sooner than you thought, then make sure that, in the future, you supply with the correct amount of products to meet your customers’ needs.

There are many sales metrics to follow to see if your team is working in the right direction and your efforts pay off. What you should do is pick the ones that will put you ahead of the game.
Analyzing KPIs is pivotal for your strategies and the welfare of your business. Fortunately, Power BI tools allow you to import customer behavior data from multiple sources, customize your analysis and get comprehensive reports that are easy to understand, even by non-technical people. Such insights are relevant to determine your challenges and influence business decisions.
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