E-commerce is growing fast in every part of the world, although the speed of growth varies concerning geography and operation sector.
This is the reason why businesses are quickly adapting to the e-commerce model. It gives them more growth and profit opportunities. However, these opportunities bring with them a set of challenges that can only be overcome by the help of a dedicated team and proper sales management.
Proper sales management can help streamline ecommerce channels and manage retailers, consequently helping you get ahead in the ecommerce game. But before we start with the benefits of sales management for e-commerce business, let’s drill down to the basics.
What exactly is sales management?
In simple terms, it can be explained as synchronization of resources and people to produce the desired outcomes. These outcomes have a broad spectrum, but the three common ones include long-term growth, increased profits, and augmented sales volume.
To ensure that the outcomes mentioned above are achieved, and all objectives are met, sales managers have a vast range of responsibilities. These include assigning quotas, recruitment, budgeting, training, sales performance evaluation, and manage the people who are responsible for the sales, among others.
Why sales management is essential for an e-commerce business
An e-commerce business relies on online sales of goods and services. Streamlined sales management can help e-commerce platforms to sell more online. However, the area of operations of sales managers varies concerning the nature of the business.
Some sales managers are involved with the marketing team while others deal with warehouse and supply management. Nonetheless, whatever their major area of operation is, the e-commerce business’s traffic growth, conversion rate, and AOV are dependent on how effective their sales management is.
How a sales management team can transform your e-commerce strategy?
1. By planning an effective sales strategy
It all boils down to how to make more online sales. A sales management team will answer that question and come up with an actionable plan. Whether your e-commerce business needs a new outreach program or a discount campaign, a sales CRM or increased market exposure; an effective sales strategy will navigate through these requirements and create a plan.
General indicators of a successful sales strategy include:
• How is the e-commerce business preparing to reach customers?
• Are any steps being taken to handle the sales funnel?
• Is there an after-sales plan in existence?
It helps when the sales management team is familiar with the digital marketing terminologies and trends; as e-commerce businesses use technology and data to drive results.
2. By empowering sales representatives
To ensure that the sales representatives bring in ROI, empower them through proper training and guidance. Sales CRM software has also proven useful in this regard. They offer insights to sales representatives and managers so that they can take decisions that improve the sales funnel.
CRMs help sales personnel organize and visualize data in a straightforward way, allowing them to streamline their sales process and foster long-term relationships with their customers.
The sales management team is provided with tools to review performance and keep track of the accomplished goals. This information enables sales representatives to evaluate how they measure up against their sales goals.
CRMs also provide information regarding customer’s buying history, product inventory, customer browsing history, and payment background to help customer service representatives deal better with the customers.
The information can also be used to upsell and cross-sell services/products to the customers.
In short, empowering sales representatives translates to better sales.
3. By improving product development
One of the main tasks of a sales management team is to stay in close contact with customers and observe the competition.
This helps them make the product/service better by adding or removing features that can maximize profits. Similarly, sales personnel also get regular reviews from their customers. This helps them identify the problems and come up with optimal solutions to attract sponsors and generate high sales.
4. By optimizing distribution
A sales management program is responsible for keeping track of what’s selling the most, the main source of the sales, and how much revenue is being generated. The goal of this program is to analyze the distribution methods of the ecommerce business and make the most of them.
For instance, if your retail sales are high and online sales are low, it could be because customers see your ads on billboards and TV more than they do on the internet.
To increase your e-commerce sales, you need to come up with an online promotion strategy, digital advert distribution, and improved SEO. A competent sales management team will help you pinpoint the problems and modify your plan.
5. By making better financial decisions
Comprehensive sales reports provide you information about the most and lowest selling products. For example, you might have some products that sell the most, with respect to volume, but make the least profit. Products like these bring down your profit margins, affecting your overall revenue.
Through the sales report, you can find out the overhead and production costs and sales expenses. This will help you know which department is struggling, and adjust your finances accordingly.
Sales management keeps in view the opportunity cost, profit contribution, and how each product impacts the operation before making any significant financial decisions.
The bottom line
The bottom line is that a well-planned and organized sales management plan that can benefit your e-commerce business in multiple ways, not just sales.
Therefore, to yield significant results from your e-commerce, you need to rethink your sales management strategy.