Introduction

What are the objectives of sales management? We know that successful sales management is the key to unlocking a company’s full revenue potential, but sales leaders have a difficult job. 

If you look at almost every sales leader role description, it reads like a laundry list of responsibilities rather than an actual job with objectives and targets. 

 

The Problem

Sales management is tough! 

First, there are so many nuances to effective sales performance (revenue, quota attainment, etc.) that it takes time to understand what makes a high-performing team tick;

Second, because so much focus is on growth acceleration and top-line revenue, there is little attention given to what actually drives those metrics — good sales management practices;

And finally, sales teams are growing more complex thanks to digital transformation and AI adoption — meaning that today’s sales manager needs to be able to do more things than ever before…

The Objectives of a Sales Manager

Sales Management Objective #1:

 Increasing Sales Volume

Sales volume is the number of goods or services sold during a given time period. It is often expressed as a monetary amount and can be calculated based on gross or net revenue. In many companies, sales volume is the primary way to determine payouts in the commission structure, making it critical for individual sales reps to accomplish their sales quotas. Effective sales management in a company with a strong commission-based structure begins with hiring the right people. It’s important to hire individuals who have a track record of exceeding quota and with the right skill set to succeed in the organization. Once hired, companies with commission-based compensation should carefully manage the sales process to ensure that quotas are being met or exceeded. Some of the ways in which companies can increase sales volume include: Developing a comprehensive sales strategy, using the right sales tools and technologies, hiring and developing highly skilled sales representatives, and creating a positive company culture.

Sales Management Objective #2: 

Improving Company Profits

Sales management can also help a company increase profits through sales by providing the right products and services to prospective customers. This is particularly true for companies in the B2B space, where one sale can lead to long-term revenue for the company. Similar to increasing sales volume, companies need to be careful that they are providing products or services that actually solve customer problems. At times, sales management also has a role to play in reducing costs. This might include managing the sales process (e.g., use of sales teams, marketing campaigns, etc.) to ensure that the company maximizes the number of sales while minimizing the associated costs.

Sales Management Objective #3: 

Contributing to Long-Term Growth

Most companies want to see their sales team contribute to long-term, sustainable growth. This means that they are not focused solely on the next quarter but rather have a clear strategy for how they will grow over the next one to three years. Additionally, this type of growth requires that the sales team have the right skill set, resources, and support to succeed. To achieve this, sales leaders need to understand the different types of growth that are available to them. These include: Market Growth, Product Growth, and Organic Growth. Market Growth refers to increasing the market size. This can be done by entering new markets or increasing the demand in existing markets. Product Growth refers to increasing the number of products or services that are sold. Organic Growth describes the process of increasing sales by making existing products and services better.

Conclusion

As a business owner or sales leader, it is important to understand the objectives of sales management in order to effectively support your sales team. This includes learning about the different sales stages (e.g., prospecting, qualification, etc.), sales metrics, and sales KPIs that can help you measure sales performance. With this information, you will be better equipped to hire and retain the best sales team possible. You can also use this information to understand how your company is performing in comparison to the industry average and make any necessary adjustments.