High productivity in the workplace is an important ingredient in any company’s success. It signals an efficient system, a roster of happy employees, and a highly functioning organization. Its benefits also trickle down from the workplace to the customers. It’s a win-win situation all around—for business, company, employees, and customers.
The challenge is making sure that productivity is in high gear in the workplace. We want our salespeople to be productive in selling. How can you make sure of that?
For one, you should have sales metrics that measure productivity in place. Some examples of these productivity metrics include Lead Response Time, Sales Pipeline Coverage, Time Spent Selling, Sales Activity and Efficiency, and Quote-to-Close, etc.
You can also run an analysis on the team. This technique is often called Cluster Analysis.
What is Cluster Analysis?
Cluster analysis is a class of techniques that are used to classify objects or cases into relative groups called clusters. It is also called classification analysis or numerical taxonomy.
Clustering is basically segmentation. It is a process of grouping a set of objects in such a way that objects in the same group (called a cluster) are more similar (in some sense) to each other than to those in other groups (clusters). You create segments with similar characteristics from a bigger (or parent) population.
- Clustering is an undirected data mining technique. This means it can be used to identify hidden patterns and structures in the data without formulating a specific hypothesis.
- Clustering is performed to identify similarities with respect to specific behaviors or dimensions.
- Cluster analysis can be used to discover structures in data without providing an explanation or interpretation. In other words, cluster analysis simply discovers patterns in data without explaining why they exist. The resulting clusters are meaningless by themselves. They need to be profiled extensively to build their identity (i.e. to understand what they represent and how they are different from the parent population).
How do You Use Cluster Analysis in Your Sales Team?
Photos by rawpixel.com from Pexels
