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What is Sales Management? (Updated 2021)

Last updated: January 2, 2021


Mike Markus
He is a CRM software enthusiast/analyst and the co-founder of CRMAdvice.org. He studied MC-IT Course from Melbourne University.

After personally analyzing dozens of successful businesses.

One of the main indicators of company’s success apart from having well designed product or a service, product-market fit and a hard working team…

Is having this one thing running extraordinary smoothly, and that is sales management.

BUT, what is Sales Management?


By simply said it is organizing and managing people selling activities, their sales technics and their direction in order to successfully boost the revenue of the company.

More specifically, it includes recruiting, selecting, training, equipping, assigning, supporting, supervising, paying motivating salary and cheering people up – all that in order to accomplish desired goals.

It’s People Management

It’s not about managing sales, it’s about managing people who are making the sales.

Why is it important and why this sales management part in your business has to be running extraordinary smoothly?

Well, when your business brings in any revenue, you must be having some type of strategy in order for that to happen.

Now, when you want to boost those figures, no matter the industry, you need to take a look at your sales management operations.

One for sure, here has to be a system in place, otherwise your business won’t survive in this already highly competitive and increasing marketplace.

Billionaire Thoughts

Some time ago, billionaire entrepreneur, Shark Tank investor, owner of Dallas Mavericks NBA team, Mark Cuban said: “Sales cures all“, and he even added, “there’s never been a company, in the history of companies, that’s ever succeeded without sales.”


Image Courtesy – Secret Entourage

Of course when we’re going deep with this idea, there are many other things and strategies involved for a company to be successful.

But you get the point.

Knowing the importance of selling, you need someone to manage all this, but who and how is going to do that?

Who will manage it all?

It’s done by a sales manager.


Image Courtesy – salesdrive

All this work is mostly done by sales managers who have three really hard duties and responsibilities to follow:

  • managing the company’s sales reps
  • maximizing the profits for the company
  • delivering the best possible value to customers

To help you better understand what is Sales Management, I believe looking at a Sales Manager responsibilities and skills on a job description, you’re getting a great overview.


Once the Sales Manager and team of sales people are in place.

You need to have three sales fundamentals in place: Operations, Strategy and Analysis.

The sales process from company to company may and will vary, but the fundamentals will always stay the same.

Let’s talk about each.

Operations: Finding and hiring great sales people

Now, you’re probably not surprised that one of the highest paid people in a typical company are the sales people.

They are the bridge between the company and the customer.

All that, while having the product in their hands.

To explain it more clearly, they play extremely important role in a company’s success.

As their job is reasonably hard:

  • there’s a lot of rejection,
  • they are traveling to collect leads (means: anyone who could potentially be a customer) while being away from family,
  • they are building relationships with potential buyers,
  • and they’re closing deals which requires a lot of energy.

To sum it up, they’re hard working people!

Because of that, each sales team should be taken care by the company, they should be equipped with the best resources possible and most importantly, they should feel like they are part of the company, even though they are spending most of the time away from the head offices.

Strategy: Structuring the sales process

Now you have sales people motivated and ready to work.

What’s next?


Image Courtesy – Dumb Little Man

What should they do?

How they are going to bring in the sales?

Important – Each and every business has a sales cycle, which means series of events which are taken place, 1) when the salesperson first engages with a prospect, 2) until the moment till he closed a deal.

In order for that to happen, you need to have a sales pipeline, or sales funnel – tools which help you manage it all.

To make it clear for you.

What is a sales pipeline?


A sales pipeline is a visual of sales prospects, which shows where they are in a sales process.

Every great salesperson is using it, as it provides all the information about the sales process and activities which are involved in it.


Analysis: Reporting

Sales reports are vital. Never underestimate creating and analyzing those.

Sales reports are describing the performance of the sales team – all the meetings, visits, calls they have made, products or/and services sold in a certain period of time.

Also, it’s tracking general revenue and opportunity status.

Knowing all those sales metrics, sales directors can plan effective sales strategies for growth by increasing the efforts when hiring more sales people for example.

In conclusion, sales reports are giving operation executives and sales directors a full overview and the status of the “funnel”.

Pros and Cons of using Sales Management and how it affects a business (short overview)

#1 Pro: It positively affects organization’s business sales-cycle

When we are talking about the sales process – it begins with contacting of a potential client and ending with the closing of a deal.

All this process and everything in between has covered in sales management, which itself is managed by company’s sales team.

Therefore, they are the most important team, as they are increasing company’s revenue.

#2 Pro: Sales Management software is great resource for company’s sales team

Having the right software to use (what do I mean by saying right: easy to learn and use; having all the cross-platform integrations; mobile friendly and on the cloud, so it could be accessible from anywhere where there is an internet connection).

There are hundreds of sales management software companies to choose from.

Here are honest and unbiased reviews on different CRM software solutions which we’ve been successfully using since 2014.

#3 Pro: Helps everyone involved

When talking about typical sales management, there are three “members” involved: the sales director, sales representative, and customer.

A sales manager in someone who responsible for leading and guiding company’s sales team.

This includes hiring and firing people.

One of the most difficult tasks of being a manager is to having to hire right people and fire those who are not a good fit.

What’s more, a sales manager is also responsible for talent management.


Image Courtesy – Ibta Arabia

Talent management helps with a process of analyzing who is the best at sales, and who lack in skills.

A sales representative on the other hand is selling products/services to customers.

Firstly, their main job is to find out what customers really want.

And from there, they should be providing the right solution for customers’ needs.

Next important step for them to do, is to build a good rapport (means: if you have rapport with someone, you two communicate with comfort and trust).

When a sales team follows sales management in a correct way, the customer himself will have a great experience with this particular company.

Great Customer Relationships

Sales management simply helps the company to have better relationship with their customers.

In ideal case, the experience was so good that a customer will share their experience with their close friends.

From a marketing point of view, that is one of the best thing to ever happen.


Because word of mouth marketing (WOMM) is powerful.

Lastly, the best type of customer is a repeat customer and that is what following sales management will help your company to do.

#1 Con: No cons

Well, I believe sales management is one of those things where there aren’t any negative impact on a business.

Having a high performing sales management process requires well-managed sales funnel

A sales funnel helps turning cold leads into hot leads or even paying customers.


Knowing that, improving sales funnel conversion rates is among the top priorities for sales people.

Two examples on how important it is to improve landing page conversion rates.

Let’s take two companies as an example.

Company X, which landing page is getting 10,000 visitors a day, and let’s say it’s conversion rate is 3,2%, this means we’re getting 320 leads per day.

These could be emails for example, where we can send out weekly newsletters with different offers.

Company Z, which landing page is also getting 10,000 visitor a day but has conversion rate 5,0%, which brings them 500 new leads per day. Think about the difference in 30-day period.

Imagine if within next 60-days one lead brings in on average $8 worth of revenue, think how massive of the difference there is with this small conversion rate improvement.

This table shows why improving sales funnel conversion rate is top priority for sales teams.


In addition, when using sales funnels, you have a clear view on all the previously mentioned numbers:

  • page visitors,
  • conversion rates,
  • leads,
  • revenue from those leads.

All this data accurately shows you the revenue the sales team is going to make in the weeks and months ahead.

Everything is understandable. How do I manage it all?

There are tons of companies who are still managing all their data, from incoming leads to sales report, on Google Drive, Excel spreadsheets.

Some still having sticky notes on the walls at their offices.

It is all great, but things have changed.

A tool called Customer Relationship Management, a CRM, allows your business to accomplish all the complicated marketing and sales processes.

Thankfully, within the past 10 years the tech world has come a long way.


Image Courtesy – Geeksmate

Technology has changed the way how businesses are managing their sales processes.

Specially cloud-based CRM softwares, which are helping sales teams improve their collaboration with their colleges.

What about you?

Have you been thinking of using CRM for your business?

Start by reading more about CRM.

Or, if you’re familiar with CRM, check out our different CRM reviews which we really enjoyed putting together for you.

Our CRM Software Review Process:

  1. Using Each CRM Software for 5+ Years.
  2. Ran Businesses With All of Them.
  3. Attended their Events.
  4. Tested for Consulting Industry,
  5. Business or Life Coaching,
  6. Authors,
  7. Blogging,
  8. E-commerce,
  9. B2b Marketing & Sales,
  10. Offline Business,
  11. And for Based Sales Model Business.
  12. Compared Usability, Cost & Value.