Sales department – structure and advice on how to build it

Do you want to sell more products or services and stand out from the competition with impressive sales results? Then remember that satisfactory profits are not only about a properly planned sales process. Sales success also consists of a properly functioning sales department. Below you will find out what a sales department structure is, why it is worth creating one and what it should consist of. We will also talk about the most popular sales force structure models and how to create an effective sales force.

What is a sales force structure?

Sales department structure is the division of a sales department according to the role and responsibilities of its individual representatives in the sales process. In other words, it is about distributing tasks and responsibilities among the sales team in such a way as to guarantee effective and satisfactory sales.

The structure of the sales department in each company may take a slightly different shape. The specific model will depend, among other things, on the number of employees that make up the sales team, the region of activity, the specific target group, the products sold and the designed sales process.

Sales department structure – why create it?

The appropriate division of the sales department is one of the most important steps to achieve commercial success. After all, a properly structured structure has a real impact on greater company profits. What is the reason for this?

A well-constructed sales department is first and foremost a division of responsibilities. This factor has a huge impact on an effective sales process. It is much better for an employee to work when he/she knows his/her tasks and what is within his/her scope of activity. Awareness of the sales target, on the other hand, is the key to achieving it.

The introduction of a structured structure in the sales department also increases employee efficiency. This is because everyone is focused on their own task and is not distracted by others that are not assigned to them.

A properly structured sales team also avoids conflict situations among employees. In sales departments with an unclear internal structure, it is easier to create various misunderstandings. Salespeople who are not fully aware of their responsibilities may resent other employees or be accused of doing less than they should in reality.

Remember that a clear division of roles is particularly important in the sales department. This is because its members have direct contact with the customer. Poor relations among employees or mistakes resulting from a lack of specific competencies will have a real impact on sales results and on the reputation of your business. Build an effective sales department and ensure a positive image of your company!

Hierarchy of the sales department

In order to build the structure of the sales department and implement effective sales activities, it is worth ensuring that you have the right background. Below are the positions that should form part of an effective sales department. Remember, however, that the choice of the number of components of the structure depends on the size of the company and the specifics of the product – not every position needs to be in your sales team.

Sales director

The sales director is the person whose main task is to manage the sales department. This employee is also responsible for shaping the sales strategy, defining KPIs and controlling the results achieved. He or she is also responsible for recruiting, motivating and ensuring regular training of other sales staff.

Sales manager or leader

This level is not found in every sales department. It usually appears in large corporations (a level below vice-president) or in small companies (instead of vice-president). The competences and responsibilities of a sales manager or leader are very similar to those of a vice-president.

Account executive or account manager

An account executive / account manager is otherwise known as a senior customer service employee. He or she is responsible for working with important customers and closing contracts. His or her task is therefore to find out what the customers’ expectations are and to create an offer to meet these expectations. Often, it is the case that the account executive only works with a specific group of customers who can bring more profit to the company.

Sales development representative

The Sales Development Representative is a so-called junior sales employee. He or she is usually involved in the first stage of the sales process and is therefore responsible for prospecting a potential customer. His or her tasks also include verifying leads – a database of contacts to potential customers.

Types of leads

Leads – contacts to potential customers – can be divided primarily according to the scale of probability with which they will lead to a real purchase. In a general division, we distinguish between:

• cold lead is a group that has not shown interest in buying your services or products,
• a warm lead is a person who is interested in your proposed services, but at this point is unsure about purchasing them,
• a hot lead is a potential customer who shows that they are very interested in your product and open to being contacted by you to finalise their planned purchase – a hot lead should be shared with your sales department.

Customer success manager

A customer success manager is a sales employee whose role is to build good, long-term relationships with customers. It is worth noting that the customer success manager works with the customer after the sales process has been finalised. Customer success therefore communicates with the customer after the customer has made a purchase. He or she helps to familiarise the customer with the product and suggests augmenting the purchase or purchasing related products to the one chosen by the customer.

Sales engineer

The sales engineer is a person whose tasks oscillate between two departments: sales and technical. His or her help is needed when the sales engineer has to sell a non-standard or high-tech product. In this case, the sales engineer ensures that the offer is properly designed. At the same time, it must be adapted to the technological requirements (so that it can be implemented after purchase) and meet customers’ needs and expectations.

Sales assistant

Every sales department must also employ a person to deal with typical office work. We are talking about issuing invoices, creating confidentiality agreements, preparing offers for customers and creating and verifying databases. The inclusion of a sales assistant in the structure of the sales department will considerably improve the work of the other specialists and increase the efficiency of the sales process.

Here is a table showing the structure of the sales department for different positions, along with the required experience and key skills:

This table takes into account the different roles in the sales department and shows that different skills and levels of experience are required for each position.

Sales department structure – the most popular models

When building a sales department, it is also worth familiarising yourself with the three most popular models regarding its structure. Choosing the right model, will undoubtedly enable you to design and create an effective sales department.

The production line model

An effective sales department is all about properly staffed positions and a properly chosen sales department structure model. What does the production line model stand for and why should you choose it?

In practice, the production line model means that the individual stages of the sales process are divided up between specific employees. Customer service is therefore not handled by one person, but by all members of the team (each sales person at a different stage of the sales process). Why is this model a good solution?

First of all, it allows you to use the specific skills and knowledge of an employee in a particular sales area. Moreover, the team works together. In such a model, you avoid unhealthy rivalry – because the finalisation of the sale depends on all the members, not a single salesman.

The pod model

Team building based on the pod model is similar to the case described above. This is because the sales process is also divided into individual employees. However, the entire sales department is also divided further – in the pod model, it consists of several groups responsible for selected projects. This solution works particularly well in large companies.

Island model

In this situation, the entire sales process is carried out by one person. He or she is therefore responsible for his or her own success or failure. The benefits of the island model are first and foremost competition, which in many cases has a highly motivating effect and ultimately increases sales. In addition, no one blames the employees for possible failure – everyone works for their own success and their own sales.

How do you create a successful sales department?

Once you have chosen your positions and the model by which you will build your sales department, it is time to get real. Here are seven elements to pay particular attention to when building an effective sales department.

Recruitment

The first step in building a sales department is recruitment. How do you choose the right employee?

First and foremost, it is worth betting on a person who stands out from the rest in terms of his or her potential. He or she should fit in with the company profile and the values it represents. If you want to check whether the selected sales person fits your company, create an inventory of the qualities you think he or she should possess. Then, at the interview, verify that he or she fits your vision.

Remember that while experience is important, it is not the most important. Among salespeople, aptitude and interpersonal skills may be much more important. These will largely determine subsequent customer satisfaction and related sales success.

It is also a good solution in the recruitment process to conduct an interview in the presence of one of your salespeople. The sales person will know best what else to ask the candidate. It is therefore worth inviting him or her to the interview and taking his or her insights into hiring the person of your choice into account.

Rotation

When hiring new employees or firing old ones, remember that the sales process involves long-term activities. For this reason, do not replace team members at short intervals – instead, keep team turnover to a complete minimum.

There should be mutual trust in the sales department, and its individual members should feel confident and stable. This is because their feelings translate into customer relations. However, a nervous atmosphere is not conducive to effective and efficient sales. Therefore, try to sign long-term contracts with each salesperson to give yourself and your employees the security they need to conduct a successful sales process that ends in a purchase.

Division of responsibilities

An effective sales department is all about clearly divided responsibilities. Depending on the chosen sales department model, assign specific tasks to individual salespeople and wait for satisfactory results. A proper division of responsibilities is the first step to skilfully managing a sales team. You can be sure that such an arrangement will bring you sales success.

Training

Proper sales team management is also an investment in the development of individual team members. For sales to be effective, you need to ensure that your salespeople have the right level of knowledge. It is important that they know the latest trends and sales tricks. In this way, they will effectively attract new customers and make a real difference to your company’s profits.

Goals

Do you want the sales team you have created to be as profitable as possible? Then don’t expect too much from your employees. Overstated targets, unsuited to their capabilities and skills, will introduce unnecessary stress that will make their sales efforts much less effective. Instead of discouraging pressure, set requirements tailored to the situation and your team.

Good relationships

Successful sales efforts are made up of many factors. One of them is the relationships that exist within the sales team. A friendly atmosphere is the key to success in this case. So take care to create and maintain positive relationships among your salespeople. A great way to create and nurture long-term relationships is through various team-building meetings and events.

Motivation system

Sales employees usually work under a lot of stress. It is therefore very important to support them in their daily work. Praise your salespeople for their successes and motivate them to continue. For major achievements, it is advisable to reach for material or monetary rewards. For minor victories, verbal praise is sufficient.

Remember to adapt the incentive system to your company’s financial possibilities. Also, be consistent in your actions – nobody likes the feeling of injustice.

Summary

An appropriately structured sales department is fundamental to the success of your business. When setting up a sales department, it is a good idea to start by choosing the components of its hierarchy. The number of planned positions should depend, among other things, on the size of the company and the specifics of the product or service offered. The next step in setting up the sales department is to choose the model according to which the subsequent responsibilities of the employees will be divided.

To create an effective sales department, consider the following elements:

• properly conducted recruitment,
• minimum staff turnover,
• clear division of responsibilities,
• regular training,
• realistic targets,
• good relations,
• an effective incentive system.

Remember that the sales department is the bridge between your company and your customers, providing the real profits. So build it up properly and create synergies between the sales and marketing departments, which can be achieved, for example, through a strategy such as smarketing. In this way, you will achieve your goals!