Our Visit Value Prediction (VVP), developed in the Corona Crisis, is able to forecast sales success in real time – drawing on historical transactions, all customer data and external data. In this article, you can learn more about the final testing phase of our intelligent forecasting tool for optimizing sales tour planning.
“40% of sales resources realize 95% of sales” – this statement simulates the results of a total of five of our clients. The consequence of this is that for many companies, profit is theoretically possible by reducing sales resources and thus reducing costs in sales. At the same time, there is also the option of doubling profits by increasing sales.
Experiences and findings from the test phase of our VVP
We have already tested our newly generated forecast with two of our clients – with the other clients we are currently in the test planning phase. In total, we included ten sales representatives in our first test. Normally, sales organizations obtain their visit contacts and rhythms from contact planning software, which tells them which customers should be contacted or visited in which calendar week. For this reason, this software counts as the heart of sales allocation. It is responsible for controlling the sales costs per customer, and for our clients the share of sales costs in the turnover is on average 15-20%.
We at Dastani Consulting manually intervene in the contact planning software of our clients. Our forecast gives insight into which customer should be visited, when and how intensively, and which customer is not worth visiting.
Often we humans are inclined to be critical of new circumstances – especially when we want to avoid mistakes in important decision-making processes. This also explains the initial critical thinking of our clients. For this reason, our clients only followed about half of our delivered Visit Value Prediction suggestions. In total, the sales representatives approached 50% of their sales contacts on their own initiative, and took the other 50% of the contacts from our prediction.
“Sales eight to ten times higher”
Through this approach, we were able to determine that the turnover of our clients in the contacts specified by us was eight to ten times as high as in contacts that the sales employees approached on their own initiative. Thus, we were able to illustrate that the sales addresses we specified led to considerably more sales. This tendency is evident in almost all of the ten sales representatives tested.
The next step will be the implementation and enhancement of our intelligent forecasting mechanism into the tour planning software of our clients. We would like to present this to you in our next article.
Our numerous case studies illustrate the success of these measures. If you have any further questions, please visit our social media channels (Xing, Linkedin, Instagram) call us at +49 (0)641 984 46 – 0.