Why Data is Important for a Startups Sales Cycle

"In today’s age, data is the new currency." For those working in sales, this quote holds dear. A good leader realizes the significance of data in sales. When any product is sold its sales team properly follows the sales cycle and strategies for the very product that has just been sold.

During all this process, data plays a key role in selecting or dismissing any strategy. Let’s try to understand this idea from the point of view of a startups sales cycle -- and the role data plays in it. In this article, we discuss how and why data is crucial for any startups sales cycle, and we also provide few tips to enhance and boost your own sales cycle -- using analytics.

1. Data is useful for evaluation.

A sales cycle usually starts with finding a lead and their qualifications -- then adding more effort -- and finally closing the deal. Data helps in narrowing down this process by reducing the unwanted contacts and lets us focus time and energy on those leads who better qualify for conversion.

Using data we can know who is our actual potential lead and thus spread out the sales funnel accordingly. Knowing your target audience is very vital. Researchers and studies help us figure out the most needed and useful statistics.

Let’s say a survey tells us that a particular age group is more oriented towards your product. Your market campaigns and sales content can then be carefully drafted and directed to resonate with the mindset of that particular group (in whatever this groups' diversity calls for -- be it age, location, a particular sport, etc.).

2. Easy to use and inexpensive.

While there is a buzz around cool features offered by the latest technological tools such as analytics, many consider leaving the data option due to the unfortunate misinformation surrounding it. The misinformation is that the data costs too much. There are numerous options available in the market. There are always selections that can be garnered at a price that is much more reasonable than one might imagine.

There are many free tools available that should be taken advantage of. Watch just how much these analytics and data show you. When considering the prices for startup sales cycle the aim is to keep the cost less in the beginning.

Yes, your money is essential for many processes in your business. Investing in data has proven more rewards than the investment cost itself and they are easy to use. With the correct tools, you can make and identify your more favorable leads by category and give these strong "potentials" more time and attention. You can now consider your sales cycle as a key weapon to your company's growth-hacking.

3. Cut short the long sales cycle.

Often the sales cycles are long and ultimately the success may depends on the closing ability of your salesperson. The sales may even depend on the mood of a customer. For these reasons, there is a concrete argument that a startup's sales cycle should be short. A new startup cannot afford to have too long of a sales cycle. These long sales cycle often do not give any scope for deviation.

Only when the sales cycles are narrowed to specific set of people interested in buying the product -- and verified by data -- can the cycle actually be shortened, still guaranteeing a profit.

Data is needed in all stages of a sales cycle and should not be limited to only the beginning nor relegated to the very end. Data can be used to track the inbound leads. The data will study and analyze the reasons behind the last successful or unsuccessful sale. Data provides a holistic view of users' choice and purchasing decisions.

You want to know exactly why your leads converted -- so that you can replicate the process. If someone didn't convert -- competitors don't seem to be shying away from the usage and help of data. Every organization whether they are a startup or an established business, should consider how they can immediately take hold of data-driven success in their sales cycles.