Managing the Sales Team
The sales team of a company is the face of the organisation. That is why most companies are willing to spend a lot of resources and invest heavily to improve their sales team. However, the current systems are making the sales team training very expensive. For that reason, companies are trying to find ways to manage their sales teams in a cost-effective manner.
So how do you successfully manage sales team? Let’s take a closer look in more detail.
Sales Team Design
Sales teams are the links between the consumer and the company. For that reason, designing the structure of a sales team properly can be incredibly important. These are the four most important steps in the creation of a sales team design:
1. Setting up an Objective
The very first step in designing of a sales team is to set an objective for the salespeople. The basic objective most companies are aiming for is the increase in sales. And while that sounds simple, it includes multiple tasks for the salespeople. They have to search for potential clients or leads that are showing promise. They also have the task of balancing the efforts between current customers and prospects. Furthermore, effectively communicating with the customers about the products and services can be crucial. So the sales people have to exhibit excellent presentation skills. Also, their objectives don’t end once the sale is complete. They are important for a number of after-sales services. Lastly, the sales people are the most effective ways for companies to gather information about customer demands.
2. The Strategic Use of the Sales Team
An individual employee can be effective, but it won’t matter if they don’t combine their efforts with the rest of the team. Assigning tasks and creating effective marketing strategies is incredibly important.
3. Structuring the Sales Team
There are multiple ways to form sales team structures. These are the most common ones:
Product structure — For companies that have complex product portfolios with little to no relation. The salespeople in this structure work directly with research and development teams.
Territorial structure — In this structure, companies assign sales representatives with geographical areas. This structure is a common solution for companies that want to build strong relationships with local customers.
Market structure — Some companies operate in multiple industries or markets. Those companies should have every sales team specialise in their own market. That way, the sales teams can effectively push products across their markets.
Complex structure — The complex structure is a combination of all of the structures we spoke of earlier.
Once companies decide on the type of the structure, they have to go on to consider the size of the sales team. Depending on the market size and the number of customers, companies can require different numbers of people.
4. Compensating the Sales Team
The final step of the sales team design process is the design of compensation plans. Compensation is probably the most important motivational factor for sales teams. One of the most popular compensation plans combines a fixed amount and additional compensation for successful projects. Another important factor in designing compensation are the travel allowances companies give to their sales teams.
Managing the Sales Team
Once a company sets up its sales team, it has to find a proper way to manage it. The management of a sales team includes the following:
- Recruitment — At the center of every effective strategy lies an efficient selection process. One of the ways companies like to design the criteria is by asking their customers what they want to see in sales representatives. Testing of behavioural and management skills is a crucial step in hiring new talents.
- Training — Without training, it is impossible to imagine an effective sales team. However, teams should also get additional training to stay ahead of the competition.
- Supervision — There are two basic levels of supervision companies should cover. In general, supervision is there to take care of the way salespeople deal with potential customers. Companies should also employ supervisors that can monitor and evaluate time management abilities of the employees.
- Motivation — Without proper motivation, no sales team will work effectively. Assigning compensation based on sales quota can drive up the motivation levels.
- Evaluation — Managing a sales team should always include the evaluation of the employees. Companies should start by analysing sales reports that the sales team provides them with. The supervisors should also provide constant evaluation feedback to the teams in order to optimise their performance.
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