“It’s about getting a little bit better, because everyone is getting a little bit better.”
Mark McGready, Director of Strategic Analytics for SparxIQ kicked off his session, “The Measure Behind The Measure: Using Market Data To Make Meaningful Business Decisions” with a story about world-record setting sprinter Usain Bolt. McGready pointed out that Bolt’s fastest times in the 100-meter dash are nearly 2 seconds faster than record-breaking sprinters from a generation ago.
Mark McGready of SparxIQ explains to NAED Eastern Regional Conference attendees how the Market Data program can benefit their businesses.
That allowed McGready to make this point: what will make you faster is not just data, but how you analyze your data.
“Data is the next big thing. It will be the primary difference maker between organizations,” McGready said. “What is your measure of success? Is it simply sales numbers, and are all sales equal? The measures that you use every month will determine whether you are doing a good job, or you are doing a bad job. If you change the measures, you can change how people do their jobs.”
McGready said using NAED’s Market Data program will help distributors analyze their data more clearly and provide new insights into sales numbers. “Within your database is the DNA of your organization that non-emotionally defines who you are and where you’re going. That DNA will plot your future,” McGready told his audience.
McGready let attendees know the Market Data program will help you take a deeper dive into your data a number of ways, including new vs. increasing vs. decreasing vs. lost revenue from customers. This will help you understand what is happening in your market. What does it mean when existing customers are increasing or decreasing their spending with you? What does it mean when you have lost a customer?
NAED Market Data analytics will also help you dig into what McGready calls “wallet share” which is the percentage of money a customer is spending with you compared with other distributors in your market. Market Data will also give you some “share stability” which looks at your total sales, and let you know how stable that number is on a year to year basis in your location. And the Market Data program will provide you with the profitability analytics you need to establish your high-profit and low-profit customers, and help you strategize for all of them while making sure your sales team understands the difference between the two.
McGready added it is a good idea to make sure your data analytics team knows the landscape, and it is not just constantly looking at numbers alone. “If your data person is not going on sales calls or listening in on marketing presentations, they are not getting a full grasp of your data,” he said.
“We are in an endless cold war with your competitors. Data is the new battleground, and data analytics will transform the industry. What you measure defines your success. It is the narrative of your company. Measurements from the NAED Market Data program need a plan for response, rather than a response on the fly, which might be what you are doing if you do not have Market Data analytics.
If you are a distributor who needs more information about the NAED Market Data program, or you are ready to sign up for it, contact the NAED Member Engagement Team for help.