As a sales manager, every decision you make directly impacts your company's bottom line. But how do you move from being good to great?
The following eight skills aren't just good; they're essential to becoming a top-performing sales manager.
Defining Success in Sales Management
In sales management, success is often narrowly defined by numerical targets. However, anybody whose worked in the business will tell you that a successful sales team not only consistently exceeds these targets but also fosters strong customer relationships. Despite this, Hubspot reveals that only about 31% of sales managers have high confidence in their teams' ability to meet crucial business goals.
We need to reevaluate how we define and measure success in sales management. Beyond just hitting revenue goals, factors like a positive team culture, high levels of employee engagement, and sustained customer satisfaction come into play. These elements provide a more comprehensive view of performance, underscoring the multi-dimensional nature of success in sales management.
The Aim and Purpose of a Sales Manager
Your role as a sales manager transcends beyond merely driving sales. You are entrusted with the task of sculpting the sales strategy, setting ambitious yet realistic targets, and ensuring that your team is equipped with the necessary tools and support to meet these objectives. Your responsibilities include cultivating a positive work environment promoting collaboration, innovation, and continuous learning.
The Role of Attitude in Distinguishing Good Managers from Excellent Ones
Attitude plays a crucial role in distinguishing good managers from excellent ones. A positive attitude can invigorate your team, foster a culture of resilience, and fuel performance. High-performing sales managers are proactive, solution-oriented, and willing to go the extra mile.
According to HBR, 56% of salespeople who rated their sales organization as excellent also rated their sales manager as excellent. They view challenges as opportunities for growth and continually seek ways to improve, leading by example.
8 Best Practices for Sales Management Success
As we explore the best practices for sales management success, it's essential to recognize that these strategies are grounded in cultivating a well-structured and motivated team.
Embracing these practices can significantly impact your sales results, contribute to a more cohesive team, and reinforce a customer-centric approach to your business. Let's delve into the practices that set top-performing sales managers apart from the rest.
1. Building a Strong Foundation
You've understood the meaning of success, you know the purpose of a sales manager, and you're aware of the role attitude plays. But how do you build a strong foundation as a sales manager?
Firstly, establish clear, measurable goals. Employees are more likely to engage with their work and succeed when they A) know what's expected of them and B) have a numerical benchmark of that success.
Secondly, invest in your team's development. A LinkedIn report found that 94% of employees would stay at a company longer if it invested in their career development.
Lastly, foster a culture of open communication. This encourages feedback, promotes transparency, and drives innovation.
2. Hone Your Hiring Skills
Your team is only as strong as its weakest link. As a sales manager, you must hone your hiring skills to ensure you bring on board the right talent that aligns with your team's ethos and goals.
- Define Your Ideal Candidate: Before you start the hiring process, define the traits, skills, and experience your ideal candidate should possess. Clearly defining job requirements can increase the quality of applicants.
- Use Structured Interviews: A structured interview process helps eliminate bias and ensures a fair evaluation process. According to Criteria, structured interviews can predict job performance nearly twice as accurately as unstructured ones.
- Evaluate Cultural Fit: Evaluate how well a candidate will fit within your team and company culture. A study by Columbia University found that the likelihood of job turnover at an organization with a rich company culture is a mere 13.9%, compared to 48.4% in companies with a poor culture.
- Invest in Onboarding: Effective sales onboarding can improve employee retention by 82% and productivity by over 70%.
3. Make Friends with Metrics
In the realm of sales management, numbers are your allies. They provide clear insights, measure progress, and guide your strategic decisions. So, how do you make friends with metrics?
- Identify Key Metrics: Start by identifying key performance indicators (KPIs) relevant to your business goals. This could include metrics such as sales quota, conversion rates, win-loss ratio, average order value, and customer acquisition cost. Once you have identified the most important metrics for your business, regularly track and analyze them to gain a deeper understanding of your sales performance.
- Track Consistently: Consistency is key when tracking metrics. Regular monitoring allows for timely adjustments and course corrections, keeping your team on track toward their targets.
- Analyze and Interpret: Data is meaningless without proper analysis. What story do the numbers tell? Are they highlighting areas of strength or exposing weaknesses?
- Use Metrics to Drive Action: Use the insights gleaned from data analysis to inform your next steps. Are there areas that need improvement? What strategies can you implement to drive better results?
- Communicate Metrics Clearly: Finally, ensure your team understands the metrics' meaning and why they're important. A study by Gallup found that employees who strongly agree that they know what is expected of them at work are 2.5 times more likely to be engaged.
4. Adhere to a Process
A well-defined, structured process provides a roadmap for your team, helping them navigate from prospecting to closing with precision. Start by establishing clear procedures for every stage of your sales operation.
Document these steps meticulously, ensuring each team member understands their role within this process. Regularly review and refine your process based on feedback and performance data.
Remember, a process isn't restrictive; it's a strategic tool that guides your team toward consistently achieving their goals, ultimately driving your business forward.
5. Be a Coach, Not a Boss
Whether you're a newly hired manager or a seasoned pro, you'll often ask yourself the same question: 'What kind of leader should I be?' The answer: Be a coach, not a boss.
A coach inspires, motivates, and guides their team towards their goals. They don't just issue orders; they work alongside their team, providing constructive feedback and fostering a supportive environment.
Our first customers were sports coaches. And we couldn't be more grateful to them. They set the foundation for how we now view effective instruction.
So, how do you transition from being a boss to a coach?
- Listen Actively: Engage in meaningful conversations with your team. Understand their strengths, weaknesses, and aspirations.
- Provide Constructive Feedback: Highlight areas of improvement while acknowledging their achievements. Focus on development rather than criticism.
- Foster a Learning Environment: Encourage continuous learning and skill development. The more your team grows, the more your business does, too.
- Empower Your Team: Give your team the autonomy to make decisions. This not only builds confidence but also fosters a sense of ownership.
6. Lead with Respect, Not Fear
Leaders who rely on fear and intimidation may see immediate outcomes, but such tactics can lead to employee burnout, high turnover rates, and a toxic work environment. Conversely, leaders who earn respect cultivate a positive, motivating atmosphere that boosts productivity, engagement, and loyalty. A study by Harvard Business Review underscores this, noting that 54% of employees don't regularly receive respect from their leaders.
So, how can you engender respect as a leader?
- Effective Communication: Promote transparency, actively listen, and foster open communication.
- Recognize Accomplishments: Acknowledge your team's successes. This recognition builds respect and motivates further achievement.
- Demonstrate Empathy: Show understanding and consideration for your team's viewpoints and emotions. Empathetic leaders are respected leaders.
- Empower Your Team: Delegate responsibilities and trust your team to deliver. This autonomy not only builds confidence but also cultivates respect.
7. Prioritize Emotional Intelligence (EQ Over IQ)
EQ is not just a buzzword; it's a fundamental skill set that drives successful leadership. While IQ might land you a position, your EQ, or emotional intelligence, propels you up the ranks.
Emotional intelligence is about understanding and managing your emotions and those of others. It involves empathy, self-awareness, and strong interpersonal skills - all integral to effective leadership. Research from TalentSmart reveals that 90% of top leaders have high EQ.
Empathy allows you to connect with your team deeper, understand their feelings, and perceive situations from their perspectives. This connection fosters a more harmonious and productive working environment.
Self-awareness involves recognizing your emotions and understanding how they affect those around you. By being aware of your emotional state and its impact, you can make conscious decisions that foster positive interactions and relationships within your team.
Interpersonal skills, such as effective communication and conflict resolution, are also part of EQ. These skills enable you to build strong relationships within your team, fostering a sense of unity and collaboration.
8. Embrace and Welcome Change
The only consistency in life is change. It's an adage as old as time, but it holds particularly true in business. Change is inevitable, whether it's the rapid evolution of technology, shifts in consumer behavior, or global events that reshape entire industries.
Yet, how we react to this inevitability can make or break a business. Embracing change means being adaptable, resilient, and open-minded. It involves seeing beyond the immediate challenges and recognizing the potential opportunities that lie within these changes.
Leaders must be prepared to navigate their teams through uncertain times in such scenarios. They should be ready to reevaluate strategies, adapt to new market conditions, and seize emerging opportunities. So, as a leader, it's your responsibility to foster a culture that embraces and welcomes change.
The First Step to Being a Better Manager- Invest in Proper Training and Development
Investing in your team members' training and development is essential as a leader. This investment not only helps them grow professionally but also improves their overall well-being.
But how do you know which areas of development to focus on? That's where a sophisticated training platform can make all the difference.
At Learn to Win, our combination of modern micro and active learning techniques allows for a customized, data-driven approach to employee development. Whether honing role-specific skills, improving communication, or staying up-to-date with industry trends, our platform can cater to all your training needs.
With our analytics and tracking capabilities, you can easily measure the progress and impact of the training on your team. This data-driven approach ensures you invest in the right areas and see tangible results.
As we already said, change is inevitable, but proper training and development can help your team navigate these changes successfully. So, take the first step towards being a better manager by investing in their growth.
Be the Sales Manager You Wish You Had
Becoming a successful sales manager involves more than just hitting sales targets; it's about shifting attitudes. Implement these eight best practices diligently. They are not quick fixes but strategic actions that lead to lasting impact. It won't be easy, but with the right mindset and proper implementation of these practices, you'll be well on your way to leading your team to success.
