Sales management is a set of business processes that encompass hiring, training and guiding a sales team, while strategising and executing operations to boost revenue. It involves employing techniques and advanced technologies to optimise planning, coordination and analysis of sales performance.
Sales management is a set of business processes that encompass hiring, training and guiding a sales team, while strategising and executing operations to boost revenue. It involves employing techniques and advanced technologies to optimise planning, coordination and analysis of sales performance.
Sales management stands as the backbone of every successful business, fundamentally because sales do not simply happen. They are the result of a meticulous orchestration that blends strategy, talent and technology to convert potential into profit. At its core, sales management is the art and science of empowering sales teams, formulating strategies that align with business objectives and leveraging data to continuously refine these approaches. It is about creating a living machine where the sum of sales team activities equals more than just sales; it's about generating sustainable growth.
Sales management extends across departments and organisations, and includes a range of tools, processes, techniques, initiatives and roles—anything and everything involved in sales. As such, it can be valuable to define some of the delivery types and management styles that make up the more-encompassing ideal of sales management.
The landscape of sales management is complex and varied, and the way tools and resources are delivered can influence the overall performance of the sales team. Here are two primary delivery types that are shaping the future of sales management:
Cloud-based solutions
Cloud platforms allow sales teams to access their data and tools on any authorised device, without the need for physical servers or large amounts of locally installed software. This ensures that salespeople can work from anywhere and at any time, with updates and data synchronisation occurring automatically and at near-constant intervals. The flexibility and scalability provided by cloud-based solutions facilitates improved collaboration and open data sharing across teams and departments.Mobile apps
With the ongoing proliferation of mobile smart devices, apps have become some of the most widely used sales tools. These software solutions allow salespeople to access critical information, manage customer relationships and perform tasks on the go, ensuring that they remain productive even when away from their desks. Mobile apps often integrate with cloud-based solutions, providing a consistent experience that enables sales staff to stay connected, enhancing responsiveness, data-access and efficiency in customer interactions.
The effectiveness of a sales team is not only determined by the tools they use but also by the management style that guides their efforts. Here are four fundamental sales management styles, each with its approach to communication and decision-making:
Directing
This style involves one-way communication from the manager to the salesperson, with clear instructions and expectations laid out. It is most effective in environments where quick decisions are necessary, or when the sales team requires strong, decisive leadership to navigate emerging challenges.Selling
Here, the manager takes on a more persuasive role, selling ideas and strategies to the sales team much like they would to customers. This approach is ideal for motivating the team and gaining buy-in for new initiatives, fostering a sense of enthusiasm and commitment towards achieving sales goals.Participating
Characterised by two-way communication, this style encourages team members to contribute ideas and participate in the decision-making process on almost equal footing with the sales manager. It promotes a sense of ownership and collaboration within the team, leveraging diverse perspectives to craft innovative strategies and solutions.Delegating
In this approach, the manager gives salespeople the freedom to make their own decisions, stepping back to let them use their judgement and expertise rather than proscriptively directing their efforts. This style is well-suited to experienced teams, where individuals are empowered to take initiative, leading to increased motivation and personal accountability.
The sales management process is the foundation of a company's revenue-generating activities, providing structure and direction to the sales team's efforts. At its core, the sales management process is designed to maximise sales performance through the careful coordination of various critical functions:
Sales operations form the foundation of the sales management process, focusing on the practical aspects of managing the sales team and their activities. This includes a veritable catalogue of tasks—hiring new talent, onboarding, training etc., as well as assigning sales territories and setting both immediate and long-term goals. Broadly speaking, sales operations are about creating the infrastructure that allows sales strategies to be executed smoothly. Operations cover both the strategy behind resource allocation and the tactics required for day-to-day activities, ensuring that the sales team has the tools and direction needed to succeed.
With the operational framework in place, the focus shifts to developing a comprehensive sales management strategy. This is centred around setting achievable sales goals and outlining a clear path to reach them. The management strategy includes the creation of a sales funnel, which maps the customer journey from initial contact to the final sale. Identifying the target market and determining the most effective methods of engaging with potential customers are both central to this process. Strategic planning often intersects with marketing efforts to ensure a cohesive approach to reaching and converting leads.
With the strategy in place, it is now time to review and improve. Sales analysis is an ongoing effort to monitor and evaluate the performance of the sales team against established goals. Sales managers leverage historical sales data and current performance indicators. They use this information to forecast future sales and identify areas for improvement. Through a detailed examination of sales metrics, including the volume of open deals, lead generation rates and conversion percentages, managers can fine-tune their sales strategies, adjust targets and reallocate resources to areas where they are most needed.
An organisation's approach to sales management can vary significantly. Here are the four primary types of sales management, reflecting the diverse landscapes sales teams operate in:
B2C (business to customer) sales target individual customers, generating leads by leveraging marketing strategies like social media, digital marketing and events. The challenge of B2C lies in converting these leads into actual customers. B2C sales managers focus on streamlining the sales process through automation and various management tools. The goal is to enhance the productivity of sales teams and (ultimately) bring in more revenue.
B2B (business to business) sales involve strategic, long-term relationships with client companies. These transactions are typically larger and have a longer sales cycle compared to B2C. B2B sales managers prioritise building strong relationships with clients to foster sustainable growth. Setting clear, measurable goals, tracking performance data and providing ongoing training are proven strategies to boost the sales team's effectiveness in B2B environments.
Software as a Service (SaaS) sales encompass the online sale of software or applications, often on a subscription basis. The sales process is generally remote, with deals closed via email or phone. Managers in SaaS sales adopt a results-oriented approach, focusing on achieving sales targets and driving revenue growth. SaaS sales management involves a keen analytical perspective, with a focus on monitoring sales metrics and performance indicators to optimise sales processes.
Enterprise sales target large-scale corporate solutions sold directly to major companies. These complex sales involve extensive contracts and long sales cycles that require approval from multiple decision-makers. Given the lengthy nature of enterprise sales cycles—sometimes spanning months or years—managers must recruit sales associates capable of developing and maintaining client relationships over extended periods. Patience and strategic relationship-building are prerequisites in enterprise sales management, allowing organisations to navigate the complexities of large corporate transactions successfully.
The role of a sales manager is pivotal in steering the sales team toward achieving its targets. A blend of strategic vision and practical execution, sales management demands a specific set of skills to navigate complex sales processes and shifting team dynamics. Here, we outline the key skills and responsibilities that are critical for effective sales management:
Assessment
Regular assessment of sales processes and team performance helps in identifying areas for improvement and implementing corrective measures promptly.Coaching and training
Continuous improvement of the sales team through targeted coaching and training sessions ensures the team remains competitive and effective in their sales approach.Directing and communicating
Clear direction and open communication are essential for aligning team efforts with organisational goals. This skill ensures everyone is on the same page and moving forward together.Forecasting
The ability to accurately predict future sales based on historical data and market analysis enables strategic planning and resource allocation to meet those future sales targets.Planning
Strategic planning involves setting sales goals, defining strategies to achieve them and allocating resources effectively, mapping out the path to sales success.Problem-solving
The ability to quickly identify and resolve issues, whether they are internal team conflicts or challenges in the sales process, is critical for maintaining momentum.Reporting and analytics
Utilising sales data and analytics for reporting is vital for tracking progress, understanding market trends and making informed decisions.Supporting team members
Providing support and encouragement to team members, addressing their concerns and helping them overcome obstacles are crucial for maintaining high morale and productivity.Talent recruitment and management
Identifying and hiring the right talent is crucial. Beyond recruitment, effectively managing the team's strengths and weaknesses to optimise performance is a key responsibility.Team management
The ability to lead, motivate and manage a sales team is perhaps the most fundamental responsibility—one that incorporates each of the previous skills on this list. A sales manager must coordinate team efforts to promote the collective achievement of sales targets. With every member of the team pulling in the same direction, individuals, departments and even entire organisations become more keenly focused on reaching their sales objectives.
Effective sales management increasingly relies on technology to streamline processes, enhance productivity and improve decision-making. The right sales management software and tools can significantly boost the efficiency and effectiveness of a sales team. These technologies facilitate better communication, improve organisation and provide valuable insights through data analysis.
While there are many tools and peripheral solutions that may be incorporated into sales management, the following are among the most impactful:
This type of software enables the sales team to create, send and track email campaigns to a broad audience. Email marketing software assists in nurturing leads, engaging prospects and keeping customers informed about new products or offers. Additionally, automation solutions allow sales teams to connect with a wide audience of email recipients while still offering a personalised message.
These tools assist sales professionals in designing compelling and interactive presentations. Effective sales presentations are crucial for capturing the interest of potential clients and communicating the value proposition clearly. As with email marketing, automation helps streamline this approach.
Sales teams often juggle multiple deals and clients simultaneously. Project management tools help in organising tasks, setting deadlines and tracking progress, ensuring that nothing falls through the cracks and that opportunities are approached with the correct level of governance.
Often taking the form of customer relationship management (CRM) systems, these integrated platforms serve as a central repository for all sales-related information. They track interactions with current and potential customers, manage sales pipelines, and analyse sales data to forecast trends. Customer service management (CSM) systems go a step further by not just managing sales interactions but also by ensuring customer success and support through the entire customer journey.
A sales management system typically takes the form of a platform that integrates various tools and features to help optimise the sales process. It provides a structured approach to managing all aspects of sales—from lead generation to closing deals and analysing performance. By centralising data and automating routine tasks, a sales management system enhances efficiency, improves accuracy, fosters better decision-making and supports sales teams in essentially all of their efforts. This allows them to focus more on selling and less on time-consuming administrative tasks.
Implementing a sales management system can transform how a sales team operates, provided that it offers the right capabilities. The most essential features found in top-tier sales management systems include:
Automated sales workflows handle repetitive tasks within the sales process, significantly increasing efficiency and minimising human errors.
Deal status tracking provides comprehensive visibility into the progress of deals at various stages, enabling better management and timely follow-ups.
Integrated CPQ (configure, price, quote) simplifies the quote generation process, allowing sales teams to quickly provide accurate and customised quotes to customers.
Lead scoring and assignment systems evaluate leads based on their potential value and automatically assign them to the most appropriate sales representative.
Live chat allows for real-time communication with prospects and customers on an organisation's website, improving engagement and increasing conversion rates.
Mail automation facilitates the sending of timely and personalised emails to leads and customers, nurturing relationships throughout the sales cycle.
Opportunity management facilitates effective tracking and governance of sales opportunities, focusing efforts on the most promising deals.
Pipeline tracking provides insights into the movement of potential deals through the sales funnel, offering a clear view of the sales pipeline's health.
Real-time notifications alert sales personnel to important events or actions that need immediate attention, ensuring a prompt response to customer needs and market changes.
Sales activity dashboards offer a centralised overview of sales activities and metrics, enabling sales managers to quickly evaluate what strategies are succeeding.
Sales forecasting systems use historical data and current trends to predict future sales, assisting in strategic planning and resource allocation.
Sales team performance analytics review performance KPIs and other metrics to enhance areas of strength, identify and eliminate possible weaknesses, and optimise opportunities for improvement.
Task creation and management organises and prioritises tasks, ensuring that all sales activities are addressed efficiently.
Territory management allocates sales territories strategically to maximise coverage and minimise conflicts, ensuring fair distribution of opportunities among sales representatives.
Supported by advanced features, the right sales management system can carry with it several clear advantages for businesses that rely on their sales teams. Some of the most beneficial of these advantages include:
A sales management system enables sales teams to prioritise tasks and leads with a higher degree of granularity. Assessing the potential value and stage of each lead or deal, teams can allocate their time and resources more effectively to high-impact activities.
Having access to a comprehensive view of customer interactions—including details of phone calls, emails and marketing messages—empowers sales teams to tailor their approach based on the specific history and needs of each buyer. This detailed overview is invaluable for personalising sales strategies and enhancing customer engagement.
Automating repetitive tasks (such as scheduling follow-up calls or sending emails post-meeting) significantly reduces the administrative burden on sales teams. This automation allows them to focus on more strategic tasks that require human insight and creativity, such as negotiating with key prospects or closing substantial deals.
By consolidating customer data from multiple sources into a single platform, a sales management system simplifies the process of managing customer relationships. This consolidation facilitates a better understanding of customer needs, creating opportunities for cross-selling or upselling to drive increased revenue.
With enhanced visibility into past, present and pipeline data, sales management systems enable more informed decision-making. Teams can analyse this data to identify successful strategies, allocate resources where they are needed most and inform various aspects of the business—from marketing to product development.
The integration of various sales tools and functions into a single system promotes a seamless sales process. This streamlined approach reduces friction points, accelerates the sales cycle and improves the overall customer experience, leading to higher satisfaction and increased sales success.
While sales management systems provide substantial support in helping sales teams to achieve their objectives efficiently, their effectiveness hinges on several factors beyond just technological implementation. Best practices can help maximise the benefits of working within these systems, promoting the optimal use of sales management tools while also fostering an environment where sales teams can thrive. Consider the following tips for ensuring effective sales management:
Establish expectations early
Clear communication of expectations sets the foundation for success in sales management. By establishing clear, achievable goals and metrics for performance early on, managers can align their teams' efforts with the overall objectives of the organisation, ensuring everyone is moving in the same direction.Continue to build sales management skills
Effective sales management requires ongoing development of both the sales managers' skills and those of who make up the rest of the team. This includes staying up to date on the latest sales methodologies, technological advancements and industry trends.Prioritise continuous learning
A culture of ongoing improvement is vital for keeping the sales team agile and responsive to changing market conditions. Implementing regular training sessions, workshops and opportunities for professional development ensures that the team remains knowledgeable and skilled in the latest sales techniques and tools.Meet regularly with each individual sales representative
Personal interaction is one of the keys to understanding the unique strengths, weaknesses and needs of each sales representative. Regular one-on-one meetings make it possible for managers to provide personalised coaching and support, fostering a culture of growth and development.Outfits sales teams with the right tools
Beyond sales management systems, salespeople need access to a variety of resources to succeed. This includes up-to-date market intelligence, effective sales enablement content and ongoing training opportunities. Equipping sales teams with the right tools ensures they can effectively engage with prospects and close deals.Celebrate success
Recognising and celebrating successes, both big and small, boosts morale and inspires further wins. Sharing success stories encourages a positive atmosphere and reinforces the behaviours and strategies that led to those achievements.
Effective sales management ensures that sales teams are well-coordinated, efficient and focused on driving revenue. ServiceNow Sales and Order Management (SOM) provides an integrated platform designed to optimise the sales management process across the entire customer buying and service journey. Offering a suite of advanced features, SOM simplifies and accelerates the sales process, driving business growth while enhancing the overall customer experience.
Automate repetitive tasks such as scheduling follow-up calls and sending form emails, reducing the administrative load on sales teams. Combine customer data from multiple sources into a single platform for more effective customer relationship management. Gain comprehensive insights into past, present and future sales performance, facilitating informed decision-making and strategic planning. And that is only the beginning. By integrating these and other capabilities into your sales operations, your teams will have everything they need to exceed customer expectations, bring offerings to market faster and achieve sustainable growth. ServiceNow makes it all possible.
See for yourself how SOM can revolutionise your sales management process. Schedule a demo today and take the first step towards transforming your sales operations for unmatched success.