Can my Data help my Deals?
Time moves forward. Deals move forward.
Is there some way to determine the relationship between them and maximize the deals you can win? It turns out the answer is yes.
Time Series Analysis is a part of predictive analytics which deals with “recurring” events. It comprises methods to extract meaningful statistics and other relevant characteristics of your data. So, think of weather forecasting, we have a series of temperature readings which are taken every hour for some period. Using those observations alone, we can get a decent idea of what the temperature would be at a given point in the future. Now the weather is a lot more complicated than that, but you get the idea.
Let’s say we track beer sales in the US every day. We observe they go up around the Holidays and down in the winter months. We can also see that they are generally rising as the population in the US grows. These two effects are called seasonality (recurring change in the data over a specified period) and trend (if the data is generally going up or down). Using Time Series Analysis, we can develop an accurate prediction of how much beer will be sold in the US – on a future date. While that’s interesting, what does it do for your business?
It turns out lots of B2B commerce has a repeating nature where we can observe transaction patterns and forecast their future values. Let’s take a classic example – printer ink. If we build a model of how often companies buy printer ink, then we can predict when they need it and market around that insight with a promotion or coupon. In fact, that’s exactly what the printer companies are doing today to win more business faster.
This technique can also apply to larger purchases as well. The key is that the similarities between companies mean we have a much bigger data set to work with, so we can make better predictions. If we looked at a single company, we wouldn’t learn much, but look at 1,000 or 10,000 and we can develop a very accurate model.
The top companies in every industry are investing in analytics tools to improve their future performance. Predictive analytics solutions, such as what we have developed at Day2Leads, uses Time Series Analysis to figure out what your customer is going to purchase next and when they are going buy. This insight improves your marketing focus and sales velocity which are critical to driving an efficient, high-performing sales and marketing operation.