In modern business, cutting-edge data has enormous influence over decision-making and analysis. Managerial experience and intuition are important. However, they’re no longer the most prominent factors in determining sales performance. Data analytics provide sales teams with critical insights that improve team performance and add value to the entire organization. 

It’s particularly important when building a commission-only sales team. If you hire commission-only sales reps, it’s key to use data to audit sales performances and make executive decisions to drive overall sales, instill confidence in sales staff, and ultimately, help the company achieve its targets. 

The Role of Data Analytics in Sales

In recent years, the role of data analytics in sales has become essential for virtually every aspect of business, regardless of the industry. When it comes to commission-only sales reps, the numbers tell you everything you need to know about performance and profits. 

Analytics may also be used to identify patterns and create predictive data. This can then be leveraged for target creation or incentivization plans for salespeople. Analysis allows businesses to predict future success and make better plans by adapting, adjusting, or even, redesigning their sales strategies. 

When it comes to commission-only sales, in particular, analysis is essential for developing incentive plans. By looking at different sales metrics, you can create customized incentive plans for all salespeople. These help them reach their potential and maximize revenue.

Strategies for Implementing Analytics in Commission-Only Sales

Sales analytics can enable businesses to streamline sales processes, incentivize staff, and increase overall revenues.

So, let’s take a look at strategies for implementing analytics in commission-only sales. Plus, we’ll show you a practical way to level up the data science approach of a business. 

1.   Determine What You Want to Analyze

It may seem obvious, but far too many companies buy all the fancy analytical tools without knowing what their end goal is. With commission-only sales, there’s no need to overcomplicate things. You’ll want to use data to do straightforward, high-value tasks, like identifying top salespeople, spotting weaknesses, and noticing trends, to understand your salespeople’s ROI.

2.   Establish Metrics

In addition to knowing what you’re looking for, you’ll need to establish what metrics best align with your goals. Consider key metrics such as total revenue, lead generation, conversion rate, percentage of revenue from new or existing customers, year-on-year growth, etc. These metrics will differ depending on the company. 

3.   Compile Data Using Sales Analytics Software

While it’s possible to manually compile data and crunch the numbers, it’s not an efficient approach, especially considering the availability of sophisticated CRMs. These programs use analytical software to analyze the data, display it in an easy-to-understand way, and provide insights that help you achieve your goals. 

4.   Take action

Armed with key insights and data relating to your sales team, the next step is to take action. There’s no point sitting on data and insights because their value diminishes with time. Decide how often you want to publish reports and be sure to take action based on your findings. 

For example, certain locations may require more salespeople to meet demand, while other zones may not be worth the effort. Or, a particular product may no longer be hitting targets, meaning you need to reconsider the sales strategy. Regardless of how many insights you have, you won’t see change until you take action.



5.   Monitor findings over time

You won’t always find valuable insights from each report. However, over longer periods, like six months or a year, you might see patterns emerging. Pay attention to data and findings over time, and take relevant action.