Even in today’s economy, sales are able to create remarkably large profit gains by growing their profit core — in other words, selectively enhancing the profitability of their existing book of business. This has immense leverage.
In most companies, between 10 and 15% of the customers are responsible for generating 150 -200% of the reported profits. Interestingly enough, between 15 and 20% of the customers eat away at 50% or more of these profits. The lingering 65%-75% of the customers generate only minimal profits or losses. We call the:
- High-profit customers “profit peaks”,
- Large low-profit customers “profit drains”, and
- Small minimal-profit customers “profit deserts.”
This profit segmentation is the key to increasing your profit core as each segment needs a different growth game plan.
As there are so many moving components within an organisation, the sales management process needs to be fully grasped in order to ensure that each aspect of the joint sales effort is operating effectively. The primary focus of the sales managers should be to maximise profit for the team all while providing the very best value to customers.
What Is The Role Of The Sales Manager?
It is the job of the sales manager to:
- Develop a sales force,
- Coordinate sales operations, and
- Implement sales techniques that allow a business to constantly hit, and even exceed, its sales targets.
If your business takes in any revenue at all, a sales management strategy is an absolute necessity. When it comes to improving sales performance for any size of operation, no matter what the industry is, the secret to success is always accurate sales management processes.
Besides assisting your company reach its sales objectives, the sales management process gives you the opportunity to stay in touch with your industry as it grows. This can be the difference between surviving and flourishing in an ever more competitive marketplace.
If you’re an experienced or new sales manager, you should be able to assess and gain visibility into your current sales force. Once you have an unobstructed view of the processes that need to be monitored and how to keep up with them, you’ll be equipped to identify issues early on, coach team members before it is too late, and have a better overview of the tasks the team should be doing to increase its sales.
Train, Coach And Mentor
Beyond merely leading your team, it’s your job as a sales manager to efficiently train your team members and continue assisting them to grow professionally. Great sales managers can easily switch between zooming in (in order to work in a rep’s world) and back out to perceive the bigger picture of how things are going more broadly in the team.
Questions that a sales manager will ask themselves is:
- Are several reps facing the same challenges?
- What kinds of inhibitors are standing in the way of hitting quarterly targets?
A great sales manager needs to grow in their ability to not only identify but answer these types of questions. When this is done, their value as a sales manager will be all but proven already.
If increasing revenue is part of your mandate, which it is, then break your organisation into the key elements of strategy, structure, people and process. Ask yourself how well you’re doing around each. We promise you that you’ll learn more than you were ready for and that’s a good thing. Sales strategy, structure, people as well as process are the sole ways to grow revenue!
If you are interested in growing the revenue of your business then you need to do our Sales Management Course. For more information, please follow this link.
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