Sales management is a strategy to increase the profitability of your business. It consists of programs such as implementation and planning as well as training, recruiting, and evaluating members of the sales team. In growing a business, these important factors must be implemented by the sales manager or the business owner.
It will help every sales manager to focus on maximizing the profit for the team and maintaining rapport with customers. Sales management also stems from the principle that when the customers are happy and satisfied, your business will earn and it will lead to more opportunities.
When it happens, you can be sure that your business will grow and develop in the future. As such, here are the three aspects of sales management that every busines owner and manager should know about.
Three Aspects of Sales Management
In sales management, there are three “umbrellas” that manage the process of sales, namely;
- Sales Strategy
- Sales Operation
- Sales Analysis
Sales strategy is a process that sells and allows an organization’s sales to position the company and its products to target customers in a differentiated or meaningful way. Inbound and outbound are the two types of sales strategies.
- Inbound sales. Companies base their sales process on customer or buyer actions. They automatically gather buyer and seller data to monitor in a more accessible way for managing sales pipeline.
- Outbound sales. Companies will base their sales technique or strategies on seller actions. They do it manually by using data to monitor the sales pipeline.
Every company has a sales cycle which help their product reach the target consumers. Further, having a sales pipeline or funnel will make your business deal with completion much easier. The sales pipeline is a sequence of actions to achieve from each prospect, from initial lead until closing the deal.
Sales Operation: Building a Sales Team
The backbone of a successful company is its sales team. They have direct contact between the customer and the product. Your sales team are the money-making machine in your business, and they must be equipped with the resources to progress. And, your sales team should feel that they are a part of your company.
You may set high but realistic targets for your sales team, to make you be able to monitor the future success, which you will learn about this in the “Sales Analysis” section. To do this, you need to:
- Provide goals and quotas
- Set high but realistic targets
But your job as a sales manager isn’t done there. You also have to counsel your team throughout the process, to make sure that they are on track. And, as much as possible you must motivate them. Share to them your career experiences and use to inspire them to motivate your sales team.
Sales Analysis: Summary and Reports
A sales report is drawn and has other various functions in it such as convincing the investors and legal purposes. It allows you to understand the current trends of your team and how it will affect the company’s progression. Successful reporting includes quantifiable indicators or sales metrics.
Following the standard sale funnel, you will be able to measure four metrics.
- Numbers of a deal in the sales funnel
- The average size of deals in your sales funnel
- The average percentage of a deal that gets win
- An average deal lifetime before winning
Gathering and collecting the data will allow your team to find the ideal consumer market which will enable you to better prepare and accommodate that market for future sales.
Who Benefits from the Three Aspects of Sales Management?
Sales management positively affects who are involved in the sales cycle. The more successful your sales process is, the more likely your team produces top performers in your company which will soon become a pool for choosing good leaders.
If there are three aspects of sales management, there are also three stakeholders involved in the sales management process:
- Customer – the one who benefits from a company’s service or product. Customers purchase your services or product based on their needs and wants. An effective sales management process should always take advantage of those facts.
- Salesperson – people who are in direct connection with customers whether online, over the phone or in person. Proper training and product/service knowledge is a must to keep that connection with customers healthy which will ultimately lead to a purchase.
- Sales manager – is a person who directs a sales team and oversees the process and in-charge for the development and leadership of the company. A sales manager must have a clear vision of where he/she stand against their competitor.
CRM (Customer-relationship management)
CRM or Customer Relationship Management is an approach for managing relationships or interactions with customers. A CRM helps businesses or companies to maintain and manage a rapport with your customers and service users. CRM records customer data such as website preferences, social media profile, email, and telephone numbers.
An excellent sales management team should organize any available information to give a complete record, so they can better understand how customers behave.
Knowing the three aspects and who benefits in the cycle is a critical fact for growing a business. Sales managers have a vital role in managing the production of sales, as well as overseeing the sales team who have direct contact with customers.
A well thought out plan will inevitably lead to a healthy relationship with customers which eventually lead to a purchase. The more number of purchases made, the more profit a company makes.