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Importance of Sales management
adnan ahmed
January 31, 2022

Importance of Sales Management For your Business

Sales management is the process of managing  sales activities in an organization. It involves planning, organizing, leading and controlling all aspects of the sales function in order to increase revenue and make a proper sales funnel which will result in better sales management. 

How important is Sales Management?

How important is Sales Management

Over the years, sales management has become increasingly important. It is now considered as one of the most important functions within an organization.

Sales management is very important because it ensures that the company achieves its goals. Furthermore, it helps boost the performance of the company’s sales team. If the sales function is not managed efficiently, the company will never realize its full potential. In short, this function helps to manage the sales team, ensuring they are fulfilling their duties well.

It is also important to know that there is no single right or best way to perform the duties of a sales operation. However, there are certain basic management skills that are common for companies. 

Why do you need it?

It is important to create a formal structure that aligns your sales force with your company goals. This will improve sales team performance, focus on their assigned tasks and also make sure everyone is on the same page regarding objectives and targets. A well-structured organization will have the following features:

  • Top-down Approach: The top executives should be responsible for overall strategy and direction.
  • The middle management (sales managers) is responsible for overseeing the activities of their teams on a daily basis.
  • Managers at the operational levels are responsible for their teams as well as for the activities of individual sales representatives. This structure provides clarity of objectives and expectations at all levels of the organization.

Why Sales management is important:

Importance of Sales management

Implementing proper sales management into any organization is the most basic requirement. Without a structurally sound arrangement of sales operations, the company cannot reach its goals. It is the pipeline that is maintained through different layers of departments, so that most qualified sales leads can flow through the bottom of the sales funnel.

It shapes the sales funnel by making important Sales strategies, approaches, promotional activities and marketing campaigns. Also, it plays a role in how to train sales personnel, handling various companies’ sales data , flow of products through the network and building a bridge of good relationships with prospects and existing clients.

It controls all the sales planning’s, and executions to ensure the company that it walks on the right track to form the sales funnel.


What functions are need to include in the sales management process:

Sales management has to be an amalgamation of different segments. From product research to implementing a marketing mix and finally converting a lead. All the steps related to making an ultimate sale are considered as a part of the sales operation.

To achieve the maximum efficiency from sales, all the elements that are connected to the sales funnel must be aligned together.

Running marketing campaign: 

Running marketing campaign

Marketing is the first step of the sales management process because from here you start to interact with your target audience. Plan how you showcase the features and benefits of the product and how it helps your target audience in their current set up.The more segmented marketing campaigns you run, the more you can grab the attention of your potential customers. 

Qualifying leads: 

A proper marketing plan will help to generate leads. But this is not the end. How the sales team qualifies a lead and turns into a prospect defines how productive and organized a company’s sales management is.The qualified leads are then filtered into various stages of the sales funnel.


Effective sales management is the key not only to high profits, but also to the very existence of the company. According to statistics, 60% of firms that fail to build their own sales system close within the first three years.

Lead management: 

Lead management

Now that you have determined that the customer is a good prospect and he needs your product, it’s time to show him how it works and discuss how it will solve their problems. The lead management process now kicks in. It is essential to clearly define how to set up an appointment, how to follow up with him and how to follow up in a proper time frame even before that campaign begins. 

Deal closing:

Deal closing is the slab of any sales function. After qualifying leads and handing them over to the sales team for better results, it’s time to see how many of them converted and how many didn’t. From here, you will also understand the ratio of total leads and converted leads as well as other metrics like lead per cost, cost per acquisition, rate of targeted lead vs non targeted and many more.

Find improvement and run the cycle again:

It is essential to identify and eliminate loose connections during this evaluation. All campaigns are likely to have highs and lows. In order to increase sales, it is extremely important to find and correct the mistakes. Then running the sales cycle with more fine tuning and adjusting. 

Object of managing sales:

Achieving company goals

There are many objectives implementing sales management tactics. The core objectives are to thrive the business at full swing to extract maximum benefit. To do this, the managers need to ensure all the departments of the organization are aligned to the company goal.

Achieving company goals: 

Sales management has a direct impact on the company’s business goals. There are many factors that impact the sales performance of the organization. For example, reduction in sales costs, improvement in gross margin, and increase in profit are all business objectives that need to be met within a certain period of time. Since all employees of an organization are involved in this process, it becomes important for them to be aware of the company’s goals and objectives. 

A regular review of their current status helps them to know how they are doing in terms of their achievements.

Ensure growth for each department:

Sales management plays an important role in ensuring that each department is growing at the same rate. A proper monitoring of progress will allow them to optimize the project plans. Planning and addressing future challenges will keep each employee engaged, and this will lead them not to fall into complacency, which will result in better performance. Management should have a clear understanding of what each department brings to the table and how their individual growth can benefit the organization as a whole.

Finding the right clients:

How to manage new clients and find the right prospect? There will be different answers for each industry, as well as each profession. To accomplish this properly, proper marketing is necessary. Find out how to reach your potential clients. Identify the areas where your target audience hangs out and use your marketing tools to reach them.

Visibility in the process:

A sales cycle should be visible to all employees so they can understand how their individual contribution impacts the overall goal. Managers must make sure that everyone is fully integrated into the process and understands what activity affects when, as well as why. This ensures that both efficiency and accuracy

Why is it important to have a good sales manager for the growth and development of the company?

Why is it important to have a good sales manager

The main purpose of this position is to ensure that the company meets its business objectives. Having a good sales manager means identifying areas for improvement in a better manner and working with the team to correct the problems at a faster pace in the right direction.

In sales management, it is the job of the manager to ensure that the sales team is working effectively. Their assistance includes training on how to perform their jobs more effectively. This makes sure that the sales team is able to achieve the desired results.

Managers assist their teams in making smart decisions based on data. Their role is to provide enough information so that the company can make an informed decision, and to make sure they review all the facts before taking any action. This helps in building confidence within the team and also improves their overall performance.

Lastly, sales managers should be able to give their team members insightful, timely and relevant feedback. This will improve the performance of the team as a whole.

Benefit of sales management

There are many benefits of having a structured sales management. Some of the top advantages of this practices include:

  • Improves the performance of the sales force.
  • Ensures that the company meets its targets.
  • Helps in identifying the areas where there is need for improvement.
  • Make sure that the company reaches its financial goals.
  • Increases the productivity of the sales team.
  • Provides effective feedback to the sales team.
  • Encourages the sales team to take calculated risks.

How to develop effective sales management strategy 

How to develop effective sales management strategy

You can start by analyzing the sales channels of your company. This will help you determine which approach to use that best suits it. You should consider:

Growth strategy:

Building out a growth strategy targeted at potential customers who are within and outside of the current distribution network of your target markets 

Building Customer Database:

Developing a customer relationship management (CRM) program for your team and current customers so they manage their day to day tasks and proper follow up.

Industry segmentation:

Tailoring channels to fit the unique needs of each customer. This will help in improving the current channels you are using and setting up new ones accordingly.

Implementing sales funnel effectively:

Implementing sales funnel effectively

Gathering all the necessary Sales goals and KPIs, Creating sales funnel for each major product or sister concerns individually.

Negotiating strategy:

Understanding customer purchase cycles so as to be able to match their needs with your company’s offerings best; listening and responding effectively during negotiation periods by identifying any early warning signals earlier on in order that you can make a change quicker; You should have some sort of training plan for your sales team to tackle any uneven situation.

Optimizing process:

Implementing a structured sales management program that delivers clear, consistent processes to drive success of your current customers. The focus should be on developing the best selling opportunities based on data driven insights gathered from customer evaluations and ongoing interactions.   


The purpose of the sales management is to ensure that salesdrive reach the targeted customers with a plan to increase the number of sales. In any business, the most important operation is the sales operations, since without it the company would be unable to survive. However, the whole process includes many other steps. Nevertheless, these steps should provide you with a good start.

In addition, don’t expect it to succeed overnight. You will make mistakes and learn as you go along. But with time and patience, you should be able to create a very effective marketing strategy for your business.

Writen By

adnan ahmed

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