Sales Management: Definition, Objectives & Best Prsctice

The success of your company may depend on how well you manage sales. Due to the complexity of a business, a thorough understanding of the sales management process is essential for making sure all areas of the sales operation are running smoothly. Successfully accomplishing this requires a top-notch sales management team and a sales manager who encourages their teams to maximize revenues while providing exceptional service to clients. In this article we will discuss the operational sales manager, job description, and salary.

What Is Sales Management?

Sales management entails setting and enforcing sales goals, as well as leading and guiding a sales staff to reach those goals. It includes formulating plans, establishing objectives, and directing sales staff in the direction that will best lead to success. Any business that wants to expand its income and customer base needs to invest in sales management.

While the term “sales manager” can refer to a wide variety of positions within an organization (such as marketing executives, district managers, managers of field sales forces, and product line sales administrators), for the purposes of this article, we will use it to refer specifically to the person responsible for hiring, supervising, and of course, supporting a sales team. Successful sales managers are great leaders, with strong communication and analytic chops and a solid grasp of their field. Having the ability to adapt quickly is crucial in today’s highly technological society.

Furthermore, the first stage in effective sales management is the creation of a comprehensive sales plan that specifies in detail how the desired financial result will be attained. The next step is to build a strong sales force by recruiting top talent and giving them all the resources they’ll need to thrive once they join your company. To maintain a great customer experience, sales management also includes reviewing sales data to discover patterns and areas for development, as well as working with other departments to collaborate. Overall business performance is intrinsically linked to revenue growth, which in turn is driven by effective sales management.

Types of Sales Management

Regardless of the field they work in, sales managers need core qualities like great communication, organization, and active listening. However, the method of sales management employed may change based on the sector in question. Some businesses need sales strategies geared at boosting overall sales volume, while others need to prioritize expanding their portfolio of high-spending clients. It’s important to zero in on the subset of sales that you excel in because each requires a somewhat different set of sales management skills.

#1. B2C Sales Management

Direct sales to end users, or “business to consumer” (B2C) trade, is the primary goal of B2C enterprises. With the help of digital marketing, social media, and events, B2C companies rarely have trouble generating leads. Converting those leads into actual sales is when they run into trouble. Managers in the sales department who implement automation and streamlining measures, such as the use of customer relationship management (CRM) software, will notice increased output from their sales staff.

#2. Enterprise Sales Management

The process of selling complex products or services directly to large corporations is known as enterprise sales. It’s not uncommon for businesses that offer enterprise products to employ many teams to handle various facets of the sale, such as sales engineers, inside and outside sales teams, and customer service representatives.

#3. SASS Sales Management

Companies that provide “Software as a Service,” often known as “SaaS,” sell computer programs or application suites online, typically on a subscription basis. The sales process is frequently conducted over the Internet, and deals are typically closed via email or the telephone. A sales manager who is in charge of a SaaS team would likely utilize a management style that is results-oriented and places an emphasis on reaching sales targets and increasing revenue to the greatest possible extent. To ensure that all members of the team have a solid understanding of the company’s goals, objectives, and sales tactics, effective communication is an essential component.

In addition, the majority of SaaS sales managers have an analytical mindset and regularly examine sales KPIs and performance indicators in order to locate areas in which the sales processes can be improved.

#4. B2B Sales Management

Strategically establishing and maintaining customer connections is a top priority in the B2B sales management approach. The reason for this is that B2B sales typically involve more involved processes and larger transactions than B2C sales. The long-term success of a firm depends on its ability to maintain positive connections with its customers, so it makes sense that B2B sales managers would work closely with their sales teams to do just that. To improve their team’s effectiveness, B2B sales managers should give continuous training, use data to monitor performance and establish clear and quantifiable targets for the sales force.

What Are the 4 Steps in the Sales Management Process?

You are in charge of setting sales goals, managing daily operations, and compiling weekly and monthly reports. Everything from employing and leading a sales force to assessing quarterly sales results may be split down into manageable chunks.

#1. Build and Oversee a Sales Force

It all comes down to the leadership of the sales staff. Get the right salespeople on board and learn what drives them so you can consistently meet or beat your goals.

Salespeople that are also a good fit with your company’s culture are essential. It’s crucial to hire people who are relationship-driven, for instance, if your company places a premium on its relationship with its customers.

Create a job description that accurately reflects the duties of the role first. The next step is a thorough screening of potential interviewees. How well do their beliefs and yours mesh? Hiring the proper person for a sales position is crucial because turnover is high in that industry.

Once you have an outstanding group assembled, you need to learn what drives people and how to harness that motivation to achieve maximum results. Why did everyone on your team decide to go into sales? Try non-monetary techniques as well as monetary ones (a bonus is always appreciated, after all).

• Find unique methods to honor your victories. Start a “champagne campaign” by leaving a bottle of champagne on the desk of a salesperson who has just met their target. Add a gold balloon to their chair or whatever. Consider these easy but significant methods of rewarding reps for their efforts.
• Motivate people to work together. Excellent ways to enhance abilities and promote collaboration throughout a team include shadowing programs, team trips, and mandated “water cooler” conversations.
• Give them the means to succeed. Provide your squad with the tools they need to achieve victory. Two such tools that can boost rep activities are a customer relationship management system and a library of sales enablement content. If you’re interested in learning more, we’ve compiled a list of the top sales productivity tools.

#2. Draw Out a Plan for the Sales Procedure

An essential aspect of effective sales management is establishing and adhering to a sales process. Sales strategies and tactics for your representatives are outlined, as well as the many stages of your sales funnel. Also, all of your salespeople need a thorough understanding of the full sales process.

Assess the following before formulating a plan for your sales procedure:

• How does the present state of your pipeline look?
• How does your team go about locating potential new clients?
• When deciding who to work with, how does your team determine their qualifications?
• Is your group effectively targeting those who can make decisions?

Now you need to create a road map for the sales process, a set of instructions for what salespeople should do at each level of the sales funnel, from prospecting to closing. You, as the sales manager, will be better able to track rep performance, identify areas that require support, and increase revenue if you have a thorough awareness of what occurs at each stop/sales stage. Your sales team will be able to better organize their efforts and boost sales as a result.

Although the specific steps your organization takes to close a transaction will vary from one to the next based on factors like target market, decision makers involved, etc., the following are some industry-standard starting points:

• Prospecting
• Qualified
• Quote
• Closure

In addition, using a customer relationship management system (CRM) can help you improve your sales processes. You can modify the phases of the sale to suit your needs.

#3. Make a Sales Forecast

Making forecasts for future sales income is what is meant by “sales forecasting.” As a sales manager, having an accurate sales estimate is essential for preparing post-sale assistance (including implementation, supplies, and infrastructure).

Find difficulties before they become problems, rate sales prospects, and monitor the performance of salespeople. In addition, sales projections provide your representatives with attainable objectives.

The following steps provide the foundation of any reliable sales forecasting process:

• Maintain a sales log.
• Track your sales leads effectively.
• Your method of prediction needs work.

In addition, use a mix of quantitative and qualitative tactics to acquire the most accurate results; the optimal forecasting methodology will ultimately depend on your business and sales process. Numerous sales forecasting models are available to you to choose from.

• Developmental Stages of a Pipeline
• Representative Rank
• Guidelines for Qualifications
• Probability of Scoring a Win
• Analysis of Regression

Pick out various approaches in light of these frameworks. To evaluate sales team efficiency and track incoming revenue, one useful quantitative approach is opportunity stage forecasting, which can be found under Pipeline Stages.

#4. Evaluate and Report

Sales reporting is the final cog in the sales machine, and it all begins with setting the criteria that will be used to measure success. Make sure your team is all using the same rubric so everyone knows how they will be graded. Here are a few measures to think about.

• Success rate
• Rate at which leads are converted into opportunities
• Average sales cycle
• Sales Rate

Win rate is one such measure that may be used to assess a number of different aspects of your business, such as the quality of your transactions, the efficacy of your coaching, and whether or not you’re concentrating on the proper clients.

After settling on a set of KPIs, you may monitor your progress via the CRM reports. Instead of needing to key in figures by hand, your CRM should automatically pull raw data and transform it into meaningful results. Sell, for instance, compiles the stats from all of your salespeople and indicates whether or not you are on track to meet your revenue target.

Sales managers should pay attention to these five reports:

• A report analyzing the sales funnel. Find out where your sales funnel is breaking down and how your reps are doing.
• The volume of Contracts Being Received. Find out how much money the marketing department is making.
• Sales forecasting. Assess the deal’s chances of success in light of its current pipeline status.
• Targets for product sales. Measure sales success in relation to yearly targets.
• Won deals goals. Find out who is the top salesman in your team.

In addition, the data in these reports can help you improve your sales processes, efficiency, and performance. To demonstrate your sales team’s success to higher management, you should regularly review reports and convey report findings.

Sales Management General Functions

The duties of a sales manager will change in accordance with factors such as the size of the company, the needs of the sales force, and the resources available to support functions such as marketing and sales enablement. However, the normal duties of a sales manager are:

• Making a strategy for sales
• Establishing a compensation and bonus structure for the sales team
• Automation of certain tasks and resources in the sales cycle
• New client follow-up and support
• Recruiting the right people
• Policy and regulation of prices
• Setting up the Sales Regions
• Putting together sales management systems and sales enablement tools.

Sales Management Components

The sales management process is the overarching strategy that provides guidance and establishes priorities for operational management. Depending on the scope of operations, these responsibilities may be split across several departments or assigned to a single sales manager. There are three main components to the sales management process.

#1. Sales Operations

Everything that has to do with the day-to-day operations of your sales staff is included in sales operations. Operations encompass the full scope of HR duties, from hiring to onboarding to training to territory allocation to goal-setting. It comprises both broad strategies and detailed plans of action to bring about the desired results.

#2.  Strategy

Your sales efforts will amount to nothing if you don’t have a strategy in place. A sales process and a series of activities at each level of your sales funnel or sales pipeline can help you anticipate the time, energy, and expertise you’ll need to run your firm successfully. However, this can be done on a company-wide scale or for specific lines of merchandise.

If it is built with data in mind, a sales funnel can provide invaluable insights. It outlines the five stages that one customer goes through before making a purchase: being made aware of an issue, being interested in the issue, considering an option, and finally making a purchase.

Also, the sales pipeline is shaped by the funnel, with its predefined stages of client outreach. It differs from company to company based on factors such as market focus, internal resources, and strategic goals. Lead generation, qualification, meeting, proposal, and closing are typical steps of the sales pipeline. 

You can create a written sales strategy if you keep the sales funnel and pipeline in mind. In most cases, this involves:

• Humans and machinery
• Development goals
• Customer profile analysis
• Exact selling methodologies
• Measurement metrics for sales
• Software needed.

#3. Sales Analysis

For a sales manager to succeed, it is crucial that they pay attention to the numbers. Sales managers analyze team performance and the number of active deals and lead in the sales funnel to ensure their teams are effective and on pace to meet their targets. Managers also need to be good at predicting sales. The manager’s ability to analyze sales data in the past will determine the effectiveness of current strategies and the setting of realistic goals for future expansion.

What Is a Sales Management Strategy That Works Effectively?

Here are strategies for sales managers to foster development, inspiration, and, most crucially, increased deal closure among their teams.

#1. Determine Financial Goals

Establish wage minimums, commission structures, and other aspects of compensation packages. So, now your sales team has realistic goals to strive for. It’s possible that this will require collaboration with HR and/or higher-ups.

Establishing these norms for your staff is crucial to the success of your business and the satisfaction of your consumers, both current and future.

The question is why.

Reps are more likely to prioritize bringing in new business rather than working with existing clients if they know they won’t be paid a commission on sales to existing customers. This may result in the loss of some of your most important assets, including customers and chances to make additional sales.

In addition, think about things like this, as well as your company’s resources and goals for growth, when deciding how much to pay your salespeople.

#2. Establish Targets and Quotas

You need to make sure that everyone on your team is pulling their weight by setting team-wide and individual goals and quotas.

Activities, job responsibilities, training, and whatever else you deem appropriate can all be assigned sales targets.

Also, make sure everyone on the team (and your superiors and other departments, if applicable) understands the expectations they must meet. In this way, everybody is on the same page and knows what they’re working for.

This can be done in group or individual meetings, or by including it in sales enablement kits given to representatives.

#3. Get New Employees up to Speed

You may or may not be the only one in charge of new hire onboarding and training, depending on the availability of resources. Regardless of the method your company uses, though, your participation in these activities is essential.

All salespeople can begin on equal footing with an understanding of the current procedures and systems in place thanks to onboarding and training.

Reps need access to data about consumers and items before they can start making sales. All the tools your team uses to communicate with clients and close deals will be covered, such as the Sales Hub that guides salespeople from lead to satisfied client.

In addition, salespeople will benefit from this understanding since they will be more ready for the talks they will have with customers.

#4. Make Financial Reports Based on Sales Data

It is your job as a sales manager to collect and analyze information regarding the performance of your sales team as a whole and each individual member.

You and your representatives should go over these reports together. Reps benefit from this openness because they can gauge their performance and determine if they are on track to reach (or, ideally, surpass) goals.

Your superiors will also need to see these reports. The rest of the company can see how you’re doing and give you input on how you can improve so that you can help them achieve their goals.

The following (and more) can be determined through analysis of your sales and revenue reports:

• To what extent do your salespeople’s efforts result in actual money being made?
• The rate at which your salespeople are making transactions and keeping in touch with leads.
• Which goods and services are the most popular and profitable to sell?
• How often you hand over leads to salespeople, and how often those salespeople follow up with the leads.
• Find out which of your resources is being leveraged most often to convert leads into paying customers.

#5. Examine and Modify Your Sales Strategy

Getting clients closer to a purchase is accomplished through a series of steps known as a sales process. A sales process, or framework, is a standard practice for high-performing sales teams.

This guarantees continuity for all leads regardless of which representative is assigned to them. Then, your brand will be more accurately represented in the interactions between your sales team and potential customers.

However, keep in mind that as your business evolves and grows, the sales process will certainly need to be revised.

You need to ensure your sales process is up-to-date and applicable, whether it’s because you have new items, a larger team of reps, or various customer personas. In this sense, it can serve as a useful resource for your salespeople for the duration of their stay on your team.

#6. Encourage Salespeople

You play an encouraging role as a sales manager. You should always be there for your salespeople, whether they’ve had a bad call with a customer, are struggling to meet their quota, or are going through a tough time personally.

It’s also important to show your staff that you care about their achievement by praising and rewarding their efforts. Find out what drives your salespeople and use that information to adjust how you communicate with them.

Also, you can make sure everyone feels appreciated and motivated by holding weekly lunches, team-building activities, and both individual and group meetings.

Operational Sales Management

It may be time to recruit a sales operation manager if your sales staff could benefit from more efficient processes to help them do their jobs better.

If you’re looking for work and you’re a system thinker who enjoys improving and executing sales procedures, a position as a sales operation manager might be a good fit for you.

An organization’s sales strategy and methods might benefit greatly from the expertise of a sales operation manager. By doing so, they guarantee the group’s smooth operation and high output. Managers in sales operations assist in the onboarding of new sales staff and provide data-driven suggestions for enhancing the sales process. While a sales manager is responsible for overseeing the sales team and directing how they connect with clients, sales operations managers make sure the team’s day-to-day operations are smooth.

What Does an Operational Sales Manager Do?

Operational sales  managers are responsible for a wide range of tasks beyond simply leading a sales force. Some of these responsibilities involve making sure that sales numbers stay healthy. They also work to streamline the buying and selling processes for everyone involved. Some typical responsibilities in this position include:

• Coordinate the efforts of salespeople and sales operations experts.
• Manage the day-to-day operations of the firm and the sales process and funnel.
• Make up some company objectives
• Sales tactics need to be honed, streamlined, and put into action.
• Sales technology should be evaluated and implemented.
• Recruiting and instructing sales staff
• Optimize the administration of sales performance
• Analyze the sales team’s individual successes and failures.
• Incorporate facts into your suggestions.
• Control sales resources, including CRM data.
• Make sales projections.
• Make use of sales automation software and set it up.

Abilities Necessary for an Operational Sales Manager

Sales operations managers use a wide range of expertise to perfect and implement sales procedures. While it is helpful to have certain “soft skills,” the most crucial thing is to have the technical skills necessary for the position. Operational sales manager typically requires the following skills:

• Communication. An operational sales manager relies on their verbal and written communication abilities to convey company goals and objectives to sales staff. Moreover, they put this knowledge to use by mentoring newly hired sales people.
• Data analysis. An operational sales manager needs to be able to analyze sales data. They can use data analysis to learn which items or advertising strategies are most effective, and then apply that knowledge to boost sales in the future.
• Leadership. Managers in sales operations utilize their managerial talents to guide a group of sales professionals toward meeting and exceeding quotas. It improves their ability to steer the ship for the team as a whole.
• Planning. An operational sales manager benefits from this ability since it allows them to efficiently streamline the company’s sales processes. A well-thought-out strategy will allow them to establish procedures that will lead to optimal performance.
• Pipeline management. Managers in the field of sales operations hone this ability in order to streamline the procedures a salesperson must go through in order to make a sale. Also, read OPERATIONAL GOALS: Steps In Setting Realistic Goals +Examples 

Sales Management Job Description

The sales team is the lifeblood of any business. The main job description of a sales manager is to increase company revenue by establishing and supervising a team of salespeople. Managers in the sales sector must inspire their staff to prospect for new business, cultivate existing clientele, establish and meet quotas, and ultimately satisfy customers. Successful applicants learn everything they can about the items or services they’ll be selling, become experts at forming meaningful connections with others, and consistently bring in new business.

In addition, develop a compelling sales manager job description to assist in your search for and selection of qualified applicants. Make it work for your own purposes by customizing the sample set out below.

How to Write a Sales Manager Job Description

To hire the best sales manager for your firm, you’ll need to provide them with an extensive job description. A good blog entry strikes a balance between information and personality. It introduces your business and the available position. Candidates for the position of sales manager should do their homework in order to assess whether or not they have the necessary skills and experience for the position.

Also, prepare a summary of your credentials, aims, and duties. Make sure the final copy is in line with what is expected at your firm and is simple to understand.

Sales Management Salary

The typical salary for a Sales Manager in the United States is $74,696 as of the 11th of June, 2023.

In case you’re in the market for a quick salary calculator, that comes out to about $35.91 per hour. This comes out to $1,436 each week or $6,224 per month.

Sales managers in the United States can make anywhere from $43,500 (25th percentile) to $125,000 (90th percentile) each year, with the highest and lowest incomes recorded by ZipRecruiter respectively coming in at $138,500 and $25,500. There may be many prospects for progression and greater income dependent on skill level, location, and years of experience, as the average salary range for a Sales Manager is rather wide (by as much as $53,500).

However, recent job posting activity on ZipRecruiter indicates that neither the Sales Manager job market in Port Harcourt, NG nor the state of is particularly active. The average yearly income for a Sales Manager in the United States is $74,696, therefore the compensation in your region is $75,711. pays its Sales Managers more than any other state in the union.

In addition, the Sales Manager salary range on ZipRecruiter was calculated with the use of an algorithm that looked at the company’s database of over a million open positions posted locally across the United States.

Is Sales Management a Stressful Job?

The position of Sales Manager is one of the most stressful jobs in sales, if not the most stressful profession overall. In addition to working long hours and shouldering a significant amount of responsibility personally, they are fully accountable for the performance of their sales team. But there is no need to panic because there are solutions to this problem.

Conclusion

There’s more to sales management than merely overseeing the people who sell a company’s products. In my opinion, the most important long-term investment a company can make in its success is in its sales managers, yet many companies have a very narrow perspective of their position. Improving morale and income can be accomplished by a focus on, and dedication to, the people who actually manage the bottom line.

Sales Management FAQs

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Reference

• coursera.org
• pipedrive.com
• snov.io
• betterup.com
• forbes.com
• indeed.com
• ziprecruiter.com