So, in order to create an effective sales team structure, you should learn the fundamental principles of organizing the work of sales managers and representatives, how to control a revenue stream and its implementation, etc. Let’s have a look at the main sales team models that really work.
Best sales team structure
For organizing an effective structure of a sales department, one manager is definitely not enough; you should engage more. The number of managers depends on the number of sales representatives and they should be divided according to the next model: 3 sales representatives led by 1 manager. Thus, when you have more than 4-5 sellers, create parallel structures with one manager responsible for 3 sales reps.
Why is this sales management model effective?
- the degree of controllability is increased since one person can effectively manage structure consisting of 3 people;
- internal competition is created.
Apart from this, pay attention to the correct organization of sales representative functions. Two main models of sales team structure can be distinguished here. In Model 1, duties are divided into the following areas: lead generation (search for new leads), closing deals (close primary transactions) and “farming” (client support and upsale / cross-sale). In Model 2, duties are mixed, so that each sales representative can perform a role of a lead generator, closer and farmer.
You can choose one of these models of sales structure based on the specificity of your business but keep in mind that Model 2 is not always effective as it is difficult for an agent to deal with cold and warm clients and provide support at the same time.
Steps for organizing an effective sales team department
- Setting goals. At this stage, you should set goals and consider incomes, revenue as well as future vision of your business. Without clear definition of goals very little can be achieved. Later, goals and plans should be discussed with your sales team for each representative to see what they need to do to produce the desired result. Then, the plan is divided into daily activities which are constantly monitored.
- Controlling sales representative activity. One of the reasons why revenue or profit target is not achieved is low activity of sales managers and representatives. If agents don’t make enough calls or don’t hold enough meetings, they will never accomplish their plans. That is why, monitoring their activity at each stage of pipeline is of great importance.
- Check pipeline of each agent. Pipeline is all transactions implemented by a sales representative. It should be in constant dynamics, that is, to be updated due to the constant opening of new deals and closing the old ones. By daily monitoring of agent’s transaction statuses, you not only understand whether they are moving to the established goal and will accomplish the plan, but also help each sales representative to analyze their weak points for their further improvement.
- Implement lead management system. In order to take leads in from different sources and sort them as fast as possible, you need to provide your sales representatives with the effective lead management system. It will simplify the process and maximize agents’ revenue productivity on each lead.
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- Train and motivate your sales representatives. By training staff, you will be able to effectively organize the work of sales representative. Listen to their calls, work on their mistakes, and discuss the ways the company can do better and improve its revenue with them. Besides, don’t forget about motivation. Use bonuses system to reward successfully accomplished plans.
The way how you structure a sales team will have a huge influence on your sales process. Choose a sales team model that works best for your business and you will definitely have a long-term growth.