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The term “big data” has become widespread within the digital community, referring to everything from predicting long-term weather forecasts to appreciating the ways in which a vaccine is able to thwart a potentially serious virus.

Of course, data has also become important within the world of sales. It will often involve topics such as demographics, product management, and analyzing where an entire industry may be headed. Therefore, it is somewhat strange to observe that big data is rarely mentioned within the world of sales processing. To appreciate the benefits that big data has to offer, it is wise to first briefly define the sales processing from a top-down perspective before moving on.

What Is Sales Processing?

Sales processing essentially represents the discrete steps that are required to transform a potential customer into a buyer. This is sometimes referred to as “pipeline management” in some circles. The steps themselves can be broken down as follows:

• Prospecting leads
• Preparation
• Approaching the client
• The actual presentation
• Addressing objections
• Closing the sale
• Following up in the future

Lead Generation

While these metrics are indeed straightforward, problems can often arise when dealing with large amounts of information or when tackling a tight timeframe. This is when the advantages of big data begin to emerge. Let us look at four major windfalls that this system can provide.

It is a well-known fact that generating high-quality leads is one of the most important portions of any sales pipeline. Not only will receptive prospects be much more likely to resonate with what is being offered, but great leads are obviously associated with a higher ROI and more targeted sales solutions. Big data allows companies to discover, collate, interpret, and define specific buyer demographics. In turn, this provides value insight into buying habits, product preferences, and which campaigns seem to be the most efficacious. When dealing with large quantities of customer-based information, big data provides an unrivalled edge.

Reliable and Repeat Sales

One interesting observation directly related to the world of online sales is the growing presence of “recommender systems.” Recommender systems are customized user homepages that present recommendations based upon past purchases. Amazon and Amazon Prime are two examples of this method.

While these systems are excellent in terms of generating repeat sales, they would not be possible without the use of big data. Big data allows vital information to be stored within a centralized database. These details can then be used to create transparent buyer profiles, ensuring that the right products and services are being presented to the appropriate customers at the right times. This is a much more efficient alternative when compared to traditional methods such as poring through innumerable (and often confusing) spreadsheets.

Higher Conversion Rates

One industry-leading survey found that a total of 57% of all businesses questioned preferred to employ data analytics to increase conversion rates. Of course, the use of data-driven analytics is nothing new. This concept has been around since the halcyon days of digital technology. The main difference involves the rapidity in which it can be leveraged to employ actionable results.

One factor involves how quickly a business will respond to an interested customer (for example, an individual who clicked on a link to receive more information). It has been found that enterprises are up to seven times more likely to generate a quality lead if they are capable of responding to such interest within one hour. Big data enables organizations to quickly gather information within real-time scenarios. Therefore, it is much more likely that they will be able to connect directly with the prospect in question.

Predicting What the Future Has in Store

It is no surprise that multinational corporations such as Walmart, Alibaba, and Costco are now using big data to predict future retail trends. Digital information is gathering at a breakneck pace and it would be nearly impossible to interpret these valuable metrics without advanced analytical processes. Similar to appreciating what the weather may have in store throughout the months to come, numerous (and sometimes seemingly extraneous) variables need to be examined.

The algorithmic approach of big data enables companies to create more accurate predictions than would have been possible in the past. This results in two advantageous scenarios:

• Marketing strategies can be pointed in the right direction well in advance.
• Seasonal variations and changes in buying behaviours will be accounted for.

Let us not fail to mention that being able to draw reasonable future conclusions is one of the best ways to remain well ahead of the competition.

We can now begin to appreciate why big data is so pivotal within the modern world of sales processing. It only stands to reason that this trend will gain momentum in the coming years.