There are various kinds of sales organization structures today, each with unique advantages and drawbacks. It’s essential to significantly structure your sales team in the right way since this will shape how well your team performs.
Some organizations have found success with just an individual salesperson per region. Others have found success by segmenting customers into teams that work together to sell larger contracts.
With the right tactics and strategies in place, your sales efforts will be much more effective, combined with a well-designed structure that promotes good communication and aligns your team’s efforts with your overall business goals. Take these steps to create the proper sales organization structure for your business needs.
What Is Sales Organization Structure?
A sales organization structure refers to how a company organizes its sales team. It includes how many people are on a team, who reports to whom, and what compensation plan is in place. These factors can impact how well a company performs in terms of generating revenue.
Sales organizations vary significantly based on their:
- Geographical location
When creating one, ensure your sales organization structure considers how you want your entire organization to function.
Clearly Define Sales Roles
To create an effective sales organization structure, you must clearly define each role. A clearly defined system helps ensure that everyone knows their part, making it easier to hire and retain top talent. These roles can include outside sales, inside sales, and a sales director.
As you plan your sales organization structure, make sure that each role is clearly defined so that everyone is on precisely the same page. Also, make sure each role has goals and metrics mapped out and that you track and monitor both monthly quotas and annual performance reviews against those goals.
Promote an Environment of Learning
To succeed in any sales environment, you must actively work on building strong customer relationships. Rather than a strictly transactional approach creating a culture of trust with clients and customers is critical.
As a company looking to grow its bottom line, you need to focus on retaining those people who are bringing in new revenue. Make sure customers feel comfortable coming back time and again.
Ensure your team is constantly learning by keeping an open dialogue about what’s working, what isn’t, and how to improve processes and strategies. This will help keep everyone motivated while also providing opportunities for advancement within your organization.
Stay Data-Driven in Decision-Making
In today’s fast-paced sales environment, keeping an eye on key data points and staying up-to-date with where you’re at in hitting goals is critical. One way to set yourself up for success is by creating a quarterly sales dashboard, which brings together all of your most important sales data in one place.
This will give you a clear picture of how well you’re performing and where your organization stands. It will be easier to make informed decisions based on actual data.
Focus on What Is Best for the Customer
The best sales organization structures are built from the ground up, focusing on how customers will best receive things. Test out different models around a select group of clients and find what works best for your company’s needs and goals.
Once you have a strong foundation, you can begin to build a structure that focuses on creating a system of accountability. Encourage growth within each department.
Building a sales organization is an essential part of any business, and it can be a learning curve. Regardless of which structure works best for your company, every sales team member must know their role in achieving success.
Utilize these tips to build a sales organization that will help you achieve your goals.