In simple terms, sales management is managing your sales process from the beginning – when you contact a lead, to the end – when a deal is closed. However, sales are one of the most important aspects of a business and involve several processes that make it possible for a sales rep to successfully sell a product or service to a customer. Companies hire sales managers with years of experience in the sales cycle to help them manage a big team and the entire sales process as well. But what actually is sales management?
What is Sales Management?
Sales management is the process of planning sales operations, controlling sales programs, implementing sales techniques and developing a robust sales force. This could include recruiting, training, and motivating sales reps to constantly achieve and even surpass sales targets.
For any company that generates revenue, having a detailed sales management strategy in place is a must-have. A precise sales management process along with a capable sales manager that can inspire the sales department is the secret to success for boosting sales performance and generating more revenue.
Key Aspects of Sales Management
While different companies have different products and hence different ways of selling those products, these three processes are the focal point of any sales management cycle.
Your sales team are the connection between the customer and your product and hence play an important role in the business dynamics. Your salespeople are not just sellers but also a representative of your company and the product. Hence it becomes important to plan your sales operations and make sure that every sales rep is on the same page. To do this, you need to:
- Set realistic targets
- Assign territories for different sales reps
- Establish quotas and goals.
Planning the sales strategy helps in facilitating the sales process and closing deals efficiently. Creating a sales cycle or pipeline will make it easier to plan, control, and manoeuvre deals to completion. A well-defined pipeline will keep the sales reps organized and give them insights into every activity of the supply chain right from the initial contact to the final deal.
Measuring and reporting the performance of your sales team helps sales managers in understanding where their team is lacking, how to increase efforts, redistribute tasks, or even hire new salespeople. With a sales funnel in place, you should be able to report these metrics:
- Total number of deals in the funnel
- The average size of a deal
- Close-ratio or the average percentage of deals won
- Average deal lifetime or sales velocity.
While all these processes can be done manually, they can give rise to several errors and discrepancies. Using a sales management tool or a CRM can provide a number of benefits and help streamline the sales management process.
Benefits of Using a Sales Management Tool
Improved Sales Team Performance
Your sales team can concentrate more on sales and closing deals rather than completing repetitive and mundane tasks like scheduling follow-up reminders, updating data in the system and more.
With details and information about every sales rep and deals in one place, organizing your database becomes easy. With every department in sync with each other, you can make data-driven decisions by using up-to-date and real-time information.
Enhanced Internal Collaboration
A sales management software summarizes everything done by your sales team in one place. This enables everyone to be in line with what’s happening, which team member is doing what and helps in reducing duplication of efforts as well.
Accurate Sales Forecasts
Making accurate sales forecasts becomes easier with sales management software as it collects data efficiently and makes it available for everyone to use.
Structured Sales Cycle
Your sales team can easily identify which leads are qualified and should be focused on, where a customer is in the sales journey, what is the progress of sales and a lot more. This helps in structuring the sales cycle more robustly with every salesperson aware of a lead’s status.
Sales management software is available on smartphones as well so that your sales team can access a piece of information from anywhere they want. This provides them with the added flexibility of monitoring the sales cycle remotely as well.
Better Analysis of Lead Sources
With the help of sales management software, you can easily see which sources are getting you the most leads and ROI. This way, you can increase resource allocation to these sources and achieve higher success rates.
Businesses are increasingly becoming digital and consumers are finding newer ways to get what they are looking for. Having a robust sales management process in place helps businesses in reaching out to customers and close more deals. This is where sales management software comes into place by providing real-time information, accurate sales forecast, on-the-go flexibility and other features. It also automates repetitive tasks to improve the productivity and efficiency of your sales efforts.