The Most Important KPIs in Distribution and the Influence of AI
Key Performance Indicators (KPIs) are also used to manage companies in the retail and wholesale sectors.
AI in the form of predictive analytics can establish correlations between individual KPIs and thus provide recommendations for action.
Numerical parameters are necessary to understand the current situation of a business. Key Performance Indicators (KPIs) are indicators that can be used to measure and determine the performance or degree of fulfilment of pre-defined objectives within a company.
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.
Artificial Intelligence in Sales: B2B Algorithmic Management
Modern data-driven management in B2B sales is where Big Data meets Artificial Intelligence. Using AI for sales efficiency.
Although algorithmic management boasts a fancy, new name, managing a workforce using data is not necessarily a new postulate. Just remember that “The Principles of Scientific Management” were published by Frederick Taylor in 1911 and soon became a culprit of the data-driven management.
Algorithmic management is Taylorism in times of big data and artificial intelligence. It uses machine learning to manage and control workforces. Millions of people employ algorithmic management when ordering food, buying online or taking a cab. Millions of workers respond to algorithms. For some, the future of management, for others a depressing picture.
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Why KPI’s Are Important to Your Sales Growth
Business success is usually measured in Key Performance Indicators (KPI): quantifiable evidence used to determine how well the sales goals are being met or will be met in the future.
Selecting the right set of key performance indicators is critical to the success of any sales organisation, in particular, those organisations aiming at future sales growth.
However, two main risks arise in the assessment of how well a B2B sales team is performing. First, B2B sales organisations tend to risk overloading their teams with too many KPIs, dashboards, and non-actionable data. Measuring an excess of performance indicators reduces the impact of each KPI, leads to confusion and lack of focus.
The remarkable truth about Predictive Sales Analytics & Controlling
Is predictive sales analytics software the newest secret weapon in B2B?
No organisation will survive the next decade without harvesting the power of predictive sales analytics. However, many sales leaders in Business-to-Business (B2B) still lack the understanding of its benefits or the infrastructure they need.
Some ignore the value of their sales data, languishing unused in their ERP and CRM systems. Furthermore, B2B sales controllers are expected to gather an ever-increasing amount of sales data for their sales leaders to neglect value extraction. Moreover, there is no value in the data if it is not used to improve revenues.
