A sales department is the heart of any business. Its proper structure and systematic operation directly impact the company’s revenue. It’s essential not only to gather a team but to create conditions where sales managers can continuously generate income. In this article, we’ll explore key stages and approaches to help you build a sales department that operates efficiently and sustainably.
Step 1. Isolate the Sales Function
The first and fundamental tip is to treat the sales function as a distinct part of your organizational structure. Sales managers should be exclusively focused on client negotiations and closing deals. All other tasks, such as customer service or order processing, should be assigned to separate employees. This will prevent your sales managers from being distracted, allowing them to concentrate fully on sales.
Step 2. Recruiting and Testing Candidates
Recruiting is one of the critical elements in building a sales department. It’s essential to involve a professional recruiter to source candidates. The selection process should be multi-channel and include test negotiations. Finalists should be assessed through case studies to evaluate their negotiation and sales skills. It’s also crucial to pay attention to the candidate’s energy during negotiations, as this can be a determining factor in successful sales.
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Step 3. Identify a Benchmark Sales Manager
Every team needs a leader—a sales manager who not only excels in sales but can also train new hires and monitor their performance. Sometimes, this leader is the first salesperson you hire, but if there’s no such person, you may have to take on this role yourself initially.
Step 4. Sales Techniques and Standards
Sales are an art that should evolve into a craft over time. For this to happen, all the best techniques and approaches to negotiation must be standardized. Create training materials that outline all conversation models and other important aspects of sales. This allows new employees to quickly adapt to your methods and maintain a high level of effectiveness.
Step 5. Onboarding New Sales Managers
The successful onboarding of new sales managers is key to their long-term effectiveness. Develop a training program that includes both theoretical and practical components. Be sure to automate the theoretical part of training using LMS (Learning Management System). After completing the theoretical course, conduct an assessment, and then organize practical training sessions to develop negotiation skills.
Step 6. CRM System—The Foundation of the Sales Department
A CRM system is a key tool for managing a sales department. It allows you to effectively track all stages of client interactions and analyze the performance of managers. Integrate IP telephony for call recording and establish clear CRM management rules. This will enable you to monitor the quality of negotiations and improve the efficiency of all processes within the department.
Step 7. Metrics and Key Performance Indicators (KPIs)
If you don’t measure it, you can’t manage it. This management principle is especially true for sales. Implement a system of key performance indicators, such as sales volume, conversion rate, negotiation intensity, and average deal cycle. These will help you better monitor your sales department’s performance and make timely adjustments.
Step 8. Incentive System for Sales Managers
Sales is an area where financial motivation directly impacts performance. An optimal ratio for the incentive system is 30% fixed salary and 70% bonus, tied to individual and team targets. Additional bonuses can be awarded for quality CRM management and negotiation intensity.
Step 9. Lead Generation—The “Fuel” for the Sales Department
Quality lead generation is the foundation of a stable sales department. The company should supply sales managers with potential client contacts so they can start negotiations immediately. This avoids an unstructured search for clients and allows managers to focus on effective deal closures.
Step 10. Distinguishing Roles of the Sales Manager and Administrator
The sales manager is a motivator and coach who trains and supports the team. However, to effectively control all processes, it’s crucial to have an administrator who monitors the CRM system and key metrics. The administrator focuses on tracking these metrics, improving the quality of deal management.
Building an effective sales department is a multi-step process that requires attention to detail. By following these steps, you can create a team that consistently generates revenue for your business. An effective sales system is not only a powerful tool for achieving goals but also the foundation of your company’s long-term success.
