Oct 31, 2019

AI For Setting Sales Target

USING ARTIFICIAL INTELLIGENCE (AI) TO SET SALES TARGETS

this topic is raised at HARVARD BUSINESS SCHOOL  at 22nd October 2019 by Michael Blanding

Setting an appropriate sales target is a very difficult task and it must be done properly to avoid any negative consequences for an organization in the long term.

Setting the target too low makes it easily achievable which limits the ability of an employee to perform his or her best.

similarly,

If the target is very high then it become really difficult to achieved. Professor at HBS said that if the target is very high then the salesperson will be discouraged and unable to perform at his full potential.

Heres the role of Artificial Intelligence comes into the picture to find that sweet spot to set the sales target accordingly, Mr. Chung professor at Harvard business school found that there is a dramatically improved productivity in companies once they adopt the advanced analytical methods.

"in real life, scenarios companies try so many trial and error methods to find the best method for sales targeting"

To improve the productivity companies has to give compensation to the employees and to find the best-suited compensation they have to experiment until they get the best method.

PAST PERFORMANCE DATA IS USED FOR SETTING SALES TARGET FOR UPCOMING YEAR


Most of the companies set the sales target higher than the previous year which could have its own drawbacks.

"suppose Mr.A is an employee at XYZ company he has given a sales target of 100 products in 2019 he worked hard and achieved his target but he can sell 120 products if he wants to in the same year but he stops himself at the target which is given to him and in next year company might giving him a target of 120 products ,So the company is not utilizing the full potential of Mr.A and this is the real problem faced by any organization"

PUTTING ARTIFICIAL INTELLIGENCE TO WORK


AI uses various algorithms and computing analysis to set the appropriate target as per the ability of an individual salesperson AI went through various variables and set the target accordingly.
As an MBA student, I would like to recommend that companies should understand the interests of there employees like what kind of news they used to read what are their area of interest and ability to take challenges are high in which area what should be the compensation for an individual and set target accordingly which makes an employee to feel more important and makes him to do his work efficiently.


COMPANIES NEED TO TARGET GOALS LIKE

  • By what percent they have to increase the revenue.
  • Is the customers are delighted or satisfied.
  • Do Swot Analysis www.digitalzak.com you can refer the above site to understand the basics of swot analysis.
  • Educate and empower your sales team and motivates them to work hard.
  • Understand the segment properly and do some research on STP.

HOW CAN AI HELP TO ACHIEVED THIS GOALS


once the data is feed into the AI system it processes it and generates the goal for an individual person the more data we give to it the more accurate result we will get from the AI. Variables that companies can use are employee data,
such as average and previous years sales it is necessary to observe the growth of competing companies or countries.  there is so much data we can use such as average temperature you may think it has no relation with sales but if the temperature is high then salesperson can not go to the field and do his work.



COMPANIES CAN COLLECT DATA GLOBALLY FOR FEEDING IT INTO AI


Companies can assign computing analysis works to small firms or consulting agencies to develop AI-based data algorithms for the organization to target the objective of increasing the productivity.

there are some firms used the AI for the following purposes.
  • banking and finance
  • security
  • smart email categorization
  • customer segmentation
  • smart device adjust accordingly to customer behavior


FROM RESISTANCE TO PRODUCTIVITY


Such systems to create the most accurate measures, and management's confidence which helps foster buy-in by sales employees.

A company can use an AI system to improved the productivity its a one-time investment which can help the organization to assign the appropriate sales target which eventually helps an organizations and employees also

if you do like above article please write a comment below


reference is from www.hbs.com

Oct 25, 2019

WHAT IS SWOT ANALYSIS?

SWOT Analysis (Explanation of Weakness, Strength, Opportunity and Threats)

Companies' objective is to improve the sales and profit of the organization. To improve that companies have to evaluate each and every aspect of the performance and overall evaluation of the company's strengths, weaknesses, opportunities, and threats are called SWOT Analysis.
In simple language it is the way of observing external and internal marketing environment 
Albert Humphrey was a management consultant at Stanford Research Institute in 1960-1970 he comes up with a method of planning which was named as Swot Analysis.


EXTERNAL ENVIRONMENT ANALYSIS (OPPORTUNITY AND THREAT)


A company must observe the macroenvironmental forces(Demographic, Economic, Political, Ecological, Technological, Socio-cultural) and microenvironmental factors(Customers, Suppliers, Competitors, Shareholders, Employees, and Media) that affect its ability to earn the profit.

A company must assign some intelligence team which will observe the trends, important development requirements, and related threats and opportunities.




OPPORTUNITY

As per the Need of Buyers and Intrest company has higher chances of making a profit that is called opportunity there are three sources of marketing opportunity.


  • Offer something which is in shorter supply. (eg. Xiaomi's flash sale)
  • Supply the same product or service in a new way. (eg. Suzuki Nexa)
  • Introduce the new product or service. (eg. Amazon prime)


Marketing managers must be very good at spotting opportunities and to evaluate the opportunities present in the company managers can use the method called as market opportunity analysis(MOA) to ask questions like this:
  • Can we locate the targeted market(s) and reach that with minimum investment?
  • Do we have all the resources to benefits the customer?
  • Can we deliver benefits better than competitors?
  • How is return on investment(ROI)?


THREATS


The threat is an unexpected change in the demand of the customers and a change of trends that would lead to lower sales and profit. An organization must practice some exercise to adapt to the changes in demand and wants of the customers.


INTERNAL ENVIRONMENTAL ANALYSIS(STRENGTHS AND WEAKNESSES)


Business need to evaluate its strengths and weaknesses on a regular basis where weaknesses are the opportunities to improve and strengths are to take advantage of that ability.

You can understand better with these examples.
  • Dell strength was selling its hardware efficiently and effectively to its customers better than its competitors like IBM and Compaq.
  • Dell weakness was its brand was not that strong and it didn't have strong relationships with the dealers.
  • Dell opportunity is they provided assembling facilities to customers once they understand the market is becoming more sophisticated.
  • Dell threat is it failed to generate a strong customer base.



CONCLUSION


Bussiness can Evaluate its own strength and weaknesses and it's not necessary to correct the weaknesses nor be overconfident on its strength.

the big question is that, what should they do then?
answer for that is, An organization must consider all the aspects and do analysis like SWOT analysis and try to make new strengths along with a reduction in the number of weaknesses they have.

That's the reason this kind of Strategies is been taught in Marketing, MBA and Bussiness studies which help the managers to found the critical points in a company to overcome and perform better. 

Thanks for reading and mention one learning from the above article in the comment section.











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