Effective sales management is the driving force behind a high-performing sales team and a profitable business. It’s not just about setting targets—it’s about creating a structured, strategic approach that involves ownership, sales managers, salespeople, and support teams working in sync. From establishing clear goals and refining sales strategies to implementing structured training programs and fostering active engagement, effective sales management ensures consistency, accountability, and continuous improvement. This blog explores the key components that contribute to successful sales management and how they directly impact revenue, profitability, and overall team performance.
Goals and Sales Strategy
Sales revenue
Sales revenue is the most common goal—top-line revenue. It is a fundamental target for all teams within the organization to achieve. When every team aligns on the sales revenue number, it creates cohesiveness within the company by everyone focusing on a shared goal—which is the definition of teamwork.
Profitability
Profitability is a less common goal—bottom-line profit. Many sales managers don’t include profitability as part of their target as it tends to be an ownership target. Yet the sales manager can exert influence and direction in this area when it is also their target and part of their strategy.
Performance
Sales actions produce sales results—or they don’t. Sales results can be improved by measuring sales actions as part of the sales strategy. Standard performance indicators include counting traffic to calculate the close ratio, calculating the average sale from the total sales divided by the number of sales, and revenue per opportunity by dividing total sales by total traffic. These metrics give the manager performance information to evaluate. Increasing performance indicators will increase sales revenue when accompanied by sales manager actions as part of the strategy.
Structure
Sales training program
A training program provides a consistent methodology that can be trained, coached, observed, and improved. Without an objective sales training program, sales managers will often rely on autobiographical and anecdotal training – which will work for some and not for others and is difficult to measurably improve.
Managing actions in time
Being organized to execute sales management actions is not a common practice for many sales managers. The unpredictability of retail can be the reason that managers don’t schedule coaching and observations or time for selling skill practice. The reality is that unless those actions get scheduled, they will likely not happen.
Execution of sales strategy
A sales strategy without action is a wish. Creating a plan is a critical step for effective sales management, and the strategy requires intentional action for it to be successful. Repeated organized actions will build a sales management habit and serve as a great example for salespeople to follow.
Active Engagement
Training and coaching meetings
From initial onboarding to ongoing training meetings, from product knowledge to skill with current technology, and from sales training meetings to practice drills, building a successful team takes all these and more. Training, coaching, and practicing are the foundational tools for consistent results and for the sales manager who is committed to consistent sales development and goal achievement.
Objective observations
Performance data is the calculation of actions taken and the results produced. Without observations to balance the data, the picture is incomplete and susceptible to inaccurate interpretations and assumptions. Observations need to be built into the schedule, or they won’t happen because something that appears more urgent will take its place.
Selling assistance
Leading by example is best, right? What better way to lead a salesperson and direct a sales team than by actually selling? When a salesperson struggles to overcome a customer objection, good sales managers step in and handle it and close the sale—with the salesperson there to observe it. This has become a lost art when it is most needed, and the benefits far outweigh any initial discomfort.
Effective sales management doesn’t need a lot of action; it needs the right actions to be taken consistently. If you have addressed each of these areas in your organization, congratulations! If not, consider enhancing the areas already in place to align with the goals and sales strategy you are committed to executing and achieving. And, of course, if you get stuck, please reach out!
