Think of deal management as a tool that helps you get the right information to reach the desired outcome
What is deal management?
Deal management is a strategy that is used by companies to define deal parameters. These include customer history, product status, discount supplied and other operational constraints in the sales review process. It is used as a tool to maximize company margins, profits and revenues. Deal management software uses visual indicators to help increase the chance of up-selling and cross-selling.
As Alexander Graham Bell said, "Preparation is the key to success." Think of deal management as a tool that helps you get the right information to reach the desired outcome. It prepares sales reps to improve their sales pitch and performance, which ultimately leads to increased revenue.
How can AI help in enhancing the deal management process?
For any business that relies on its sales team for revenue, it is essential that it provides a learning and growing environment. However, most organizations are struggling with providing their sales reps with the means to excel. According to a statistic, 44% of sales executives think that their organization is ineffective at managing sales processes.
But thanks to the digital transformation taking over the business world by storm. Many leading organizations are able to automate business processes by using advanced technologies like artificial intelligence (AI). Research proves that corporate investment in AI is expected to triple after 2017. What’s more, the artificial intelligence market is predicted to reach a staggering net worth of$100 billion. Another recent survey shows that 30% of respondents claim that AI is going to be the biggest disruptor in their industry throughout the next five years. All these statistics and research prove that AI is no doubt going to become the biggest game changer in the workplace.
So, why not use machine learning to expand and optimize the deal management process? Here are some ways in which AI and machine learning improve the performance of your sales reps and help inthe deal management process:
The ideal way to close a deal is to personalize it according to the likes and dislikes of the customer. Using a deal management software such as Salesmate ensures that a deal is tailored to a customer’s personal preference. This, in turn, makes it two times more likely for you to sell your products or service.
AI makes it possible to improve customization while lowering costs. By combining factors like historical data of customers, natural language process and algorithms that are continuously being updated through interactions, customers can expect a personalized deal.
The main aim of a sales team is to close as many deals as possible for your organization. However, each sales executive tends to take a different route according to their preference and personality.
The organization can form a deal management parameter based on artificial intelligence and machine learning, such as discount levels and product constraint. This will make the whole cycle much more streamlined and consistent. You will notice increased engagement between your sales team, reduce risks and you can send a consistent brand message to your customers too. In short, AI helps reduce conflict and increases consistency in the deal management process.
3. Increased visibility
Sales reps are often at a crunch for the time when trying to close a sales cycle. The longer the cycle takes, the fewer deals are made. A deal that is paused for whatsoever reason becomes cumbersome for the sales rep. AI helps in moving forward the sales cycle by increasing the visibility of the process. It also provides your sales team with the road map to keep the deal on fast track.
4. Automating finance
AI has proven to be an exceptional tool in handling many financial processes. When a customer pays for a product or a service, the sales team doesn't have to correspond with the order number and determine any excess or shortfall. An automated service based on AI algorithms and machine learning help in maintaining accurate invoices. This allows the sales and finance staff to catch up on more strategic tasks.
5. Constant connectivity
You can’t expect sales to roll in without being connected 24/7. From a social and business standpoint, you should be accessible to your customers around the clock. AI makes sure deals never sleep. AI-based changes like having a chatbot help your customers during off hours and give your sales team complete access to information anytime. This can be done anywhere and from any device through efficient CRM software to help the ball rolling.
One of the biggest challenges marketers and sales managers face is trying to predict their team’s total sales number. With the help of an AI algorithm, the sales team can analyze mounds of data. This data analysis can help managers predict future conditions, which empower them to meet targets and allocate budgets.
Every quarter’s revenue can be predicted to a high degree of accuracy, which enables the company to manage its inventory and other resources accordingly.
Research shows that sales rep only spend one-third of their time selling. The rest of their time is spent in gathering data, entering it and contacting customers through email or telephonic calls. It takes around eight cold calls to reach a prospect. Relying on AI in the deal management process means offloading some of the unnecessary work, which the sales team has to do. This leaves them with ample time to do live human interaction.
This is why AI is gaining traction at the workplace at a dizzying speed. At the same time, organizations need to be thoughtful about how they are going to apply machine learning and AI to their deal management process. This involves an understanding of the advantages and disadvantages of this technology. The question is how ready are you to adopt and investigate this new tech trend?
What is your opinion about the role of AI in the deal management process? Has it helped close more deals for your sales team? Let us know your experience in the comments below.