What is Strategic Sales Management: Definition, Benefits & Process

What is Strategic Sales Management: Definition, Benefits & Process Table of Contents Facebook Instagram Twitter Linkedin-in To survive in the business world, earning sales revenue and enhancing shareholder value is critical. Sales effort that takes place through personal communication is a major way many firms persuade customers to purchase products and services. This is where strategic sales management plays a key role by focusing on key ideas in making sales and the sales process. Strategic sales management also considers managerial issues in sales, managing the traditional salesforce, then transitioning to managing key/strategic accounts.When it comes to strategic sales management you need to understand that this term defines the process of developing as well as implementing procedures as well as objectives that help an organisation stay ahead of its competition and keep the interest of your customers piqued which in turn helps in driving up the sales. Moreover, strategic sales management is also a skill that is developed as you gain experience in the world of business and adopt a strategic mindset.Through this blog, you will get a deep insight into strategic sales management, including its benefits, types, and the key elements that define its process. What is Strategic Sales Management- Definition Strategic sales management is defined as the process of developing and implementing strategies as well as plans that help and assist an organisation and the sales team to achieve its goals and objectives in a planned manner. The objectives of sales management include formulating a strategy, creating and planning an organisational structure, allocating resources, controlling processes and resources as well as leading change initiatives. The process of strategic sales management and planning is diverse and dynamic in nature. It involves recognising business challenges, identifying the best strategy, monitoring progress, and then making adjustments to the chosen strategy so that the overall performance improves. This is done with the help of SWOT analysis (strength, weakness, opportunities, and threats) and managers analyse spaces where opportunities, as well as threats, lie in between the business, competition, and the overall market.Strategic sales management as a process happens at higher levels like the organisation-wide leadership. However, if the need arises it can also be implemented at a department or team level. The main aim of strategic sales management is to minimise costs while increasing revenue and profits. Setting quotas, monitoring progress, and providing assistance to sales representatives to reach their targets are also important objectives of sales management. Moreover, strategic sales management plays a very important role in aligning the sales department with the overall objectives of the organisation. To make the process of strategic sales management a success, managers must analyse market trends, identify opportunities, and adapt strategies to stay competitive. Strategic Sales Management- Benefit Strategic sales management plays a very important role in the success of a sales team and it plays a key role in helping an organisation achieve its business goals. This process not only involves just assisting or overseeing salespeople but also involves strategizing, optimising, and guiding the sales process and the sales team. Moreover, strategic sales management is crucial because it oversees and ensures that an organisation runs smoothly, meets its targets, and also contributes to the overall success of the organisation. The whole process of strategic sales management is a multifaceted process that is based on strategic thinking, strong leadership, and also a deep understanding of customer needs. Let us now take a look at the various benefits of strategic sales management. Increased Revenue Strategic sales management if implemented correctly can have a direct and successful impact on the revenue generation of a business. A well-researched and structured sales management system can help identify potential customers, create effective sales strategies, and also close deals efficiently. With the help of a strategic sales management process, a business can make more revenue and achieve financial targets. Market Expansion Strategic sales management is crucial if a business wants to expand to new markets as it involves identifying potential opportunities, conducting market research, and developing market entry strategies. The right strategic sales management can help organisations penetrate new territories, establish a strong presence in competitive markets, and reach a wider customer base. Driving up Customer Satisfaction Strategic sales management plays a key role in helping the sales team understand customer needs as well as providing solutions to help meet those needs. If the sales team understands the needs of their customers then they can ensure that their customers receive the right products or services, personalised attention, and timely support Understanding and delivering services and products as per the needs of the customers helps in fostering long-term relationships, high customer satisfaction and ultimately driving customer loyalty and repeat business. Improving the Sales Team Performance Successful strategic sales management plays a very crucial role in managing and motivating the sales team. With the right planning, this process can provide guidance, training, and as well as constructive feedback on the performance of the sales team to ensure that each sales representative performs at their best. Strategic sales management helps leaders set clear goals, monitor performance as well as provide the right support to their teams, empowering them to achieve higher sales targets and improve overall performance. Helps in Gaining Competitive Advantage The business and sales world of today is cut-throat and strategic sales management if implemented correctly can provide the much-needed competitive edge to an organisation. This process uses ways to analyse customer behavior, monitor market trends as well as adapt sales strategies so that businesses can stay ahead of the competition. With the help of sales strategies, an organisation gets to identify unique selling points which helps them to differentiate their offerings and position themselves as industry leaders. Helping in Performance Evolution and Improvement Performance evolution as well as identifying areas of improvement is one of the major objectives of sales management. Tracking KPIs or key performance indicators, evaluating the effectiveness of sales strategies and analysing sales data are all part of sales management. When a business monitors sales metrics it helps them to identify strengths as well as weaknesses and areas that require improvements. This data-driven approach is a key element of strategic sales management which empowers sales managers to make informed decisions and use corrective strategies so that the sales process can be improved continuously. Allocating Resources Efficiently Strategic sales management plays a very big role in allocating resources like budget, time, and manpower efficiently. This process helps an organisation to focus on sales opportunities, streamline sales processes and also allocate territories effectively. Strategic sales management helps in getting rid of inefficiencies so that the team can focus on high-potential prospects allowing a business to maximise its ROI (return on investment) and improve its overall operational efficiency. Strategic Sales Management Process- Key Elements As discussed earlier, strategic sales management provides a framework to leaders so that they work with a buyer-focused approach. Let us now take a look at the key components of strategic sales management. *medium.com Sales Operations This element of strategic sales management involves hiring, training, mentoring as well retaining sales talent. By providing the right training and professional development, managers equip their teams with the latest product knowledge and sales techniques. Moreover, it keeps them motivated to deliver their best. Strategic sales management also involves setting up ambitious yet realistic targets for the team and then tracking their performance so that they get the right support when required. Sales Process and Strategy This element involves guiding the sales team with strategies and data to move leads through the pipeline and close deals. This process works like a step-by-step guiding manual for the team and helps the team convert leads into customers. Sales process and strategy work as a sales team’s playbook and it provides them with important details to sell their products and services. Sales Analysis and Reporting This key component of strategic sales management involves setting quotas, sales forecasting as well as analysing sales data to ensure that the team meets targets. This key element is important as it provides insights into the effectiveness of sales processes and strategies. Sales analysis and reporting help management understand whether they are achieving their targets by monitoring key sale metrics and providing crucial insights into the ways that can be implemented to achieve goals. Strategic Sales Management- Types Strategic sales management types are broadly classified into four major categories. These categories are divided based on their purpose. For example, while one particular type focuses on sales volume or number, another focuses on driving revenue through high-value accounts. Let us now take a look at these strategic sales management categories to understand them better. B2B Strategic Sales Management B2B or business-to-business strategic sales management involves selling goods and services directly to other businesses, as the name implies. This type of sales management involves higher-value products with longer sales cycles. B2C Strategic Sales Management B2C or business-to-consumer strategic sales management as the name suggests involves selling goods or services directly to the consumers. This sales management style usually involves using aggressive selling and marketing strategies. SaaS Strategic Sales Management SaaS or software as a service companies use this technique to sell applications or software to their targeted customers over the web. This usually happens through subscription and the sales team contacts potential customers through phones and emails. The deals under this type of sales management happen remotely. Enterprise Strategic Sales Management The process of enterprise strategic sales management involves the selling and marketing of complex goods and services directly to large-scale companies. Companies that are involved in selling enterprise solutions usually have various teams involved in different aspects of the deal like inside and outside sales times as well as sales engineers. Conclusion Strategic sales management is crucial for any business that wants to drive up the growth of business, enhance customer satisfaction, and also maintain a competitive edge in the market. With the help of strategic sales management, an organisation can not only manage sales activities and improve overall sales performance but also increase revenue, expand into new markets, and also optimise resource allocation. So, if you want to make a career in the field of strategic sales management, then you must enroll in the Professional Certificate Programme in Strategic Sales Management and New Age Marketing by IIM Kozhikode. To enroll, click here. Frequently Asked Questions What is strategic sales management? Ans. Strategic sales management is an all-encompassing process that involves managing, training, and handling a sales team as well as its operations and also implementing sales strategies to achieve business goals. With the right strategic sales management process, managers can drive up the sales of their team and improve their productivity by adopting best practices. What are the financial benefits of strategic sales management? The financial benefits of strategic sales management are: Improves revenue as well as cash flow Increase profitability as well as market share Prevents legal risk Minimises costs while increasing revenue and profits What are some important objectives of strategic sales management? Some important objectives of strategic sales management are: Revenue generation Increased sales volume Sustained profits Sales department growth Market leadership Prospect conversions Motivating the sales force What is a sales management system? The sales management system is a software, that is used to facilitate and improve the efficiency of the sales workflow. This type of software plays a crucial role in managing sales, monitoring performance, streamlining the sales process, and tracking the performance or results of the sales team. A sales management system helps add to the forecasting capacity and predictability of a sales department and ensures that the sales management process is repeatable and measurable. What are the different approaches used in strategic sales management? Strategic sales management uses two major approaches; prescriptive and descriptive. The prescriptive approach focuses on the development of strategies while the descriptive approach focuses on how these strategies should be put into practice. The prescriptive approach is usually based on SWOT analysis and is more top-down. On the other hand, the descriptive approach is based on experimenting with different methods to find solutions and learning from experience. What are the various careers in sales management? There are different jobs in sales management. Some of these are: Sales Manager Business Development Manager Sales Coordinator Sales Director SaaS Sales Manager Regional or State Sales Manager National Sales Manager Director of Business Development Director of Sales Vice President of Sales Inbound Sales Manager Telesales Manager Channel Sales Manager IT Sales Manager Related Program Executive Management Programme in Advanced Strategic Management – CEP, IIT Delhi Strategy Know More Executive Programme in Operations Management and Analytics – IIT Delhi Supply Chain & Operations Know More Post Graduate Certificate Programme in Digital Strategy and Marketing Analytics – IIM Nagpur Digital Marketing & Analytics Know More Recent Blogs What is the Online MBA Experience Like at Amrita Vishwa Vidyapeetham? 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