Regardless of your business niche, it’s paramount that each employee is fully engaged and does exactly what they’re best at. As a rule, a team with a messy structure and complicated process organization loses its efficiency and becomes very chaotic. It’s not ideal for most departments, but when it comes to sales, this is completely unacceptable, because the company’s profit largely depends on the sales department.
Today we will talk about what types of structures there can be in the sales organization so that you can understand what is right for your team.
Sales organization structure
The number of levels and roles in the sales structure can vary depending on the complexity of the product and the deal cycle of the organization. Let’s highlight a few basic models:
One-level structure or the island model
One-level structure is a model in which one person closes all functions — takes a request into work, qualifies it and brings it for sale, and also deals with repeat sales, if they are for.
The island model is right for you if you are a small, growing team with a short deal cycle.
One-level structure with an assistant
In this model, the sales rep also leads the client at all stages of the sale: qualifies, sells and makes additional sales, but here they are assisted by an assistant who can work with two, three, and more sales reps at the same time. It all depends on the workload and issues that arise.
This scheme is suitable for you if your sales reps spend a lot of time on routine tasks (complex contract / estimate calculation / quotation preparation) and they need to be offloaded.
Two-tier structure (hunter and farmer)
In this model, sales reps divide their roles. Hunters bring in new customers and expand the customer pool, while farmers deal with their follow-up, pre-sales and ongoing service.
This model is appropriate for your business if your customers consistently make repeat purchases and if your primary revenue comes from long-term customer retention.
Two-tier structure with a lead-manager
The idea behind this model is that if you have a large inbound or outbound customer flow, the lead manager qualifies customers — and determines their:
- need
- availability of money
- urgency
- location of the customer
Then they pass only the hot and targeted lead to the sales rep. The lead manager’s only job is to respond to the request and qualify it quickly.
Such a system is worth using if there is a large flow of inbound or outbound activity at the top of the sales funnel.
Three-tier structure or the assembly line model
A three-tier structure (conveyor belt) is a model that includes three roles. There is a rep who qualifies the client (lead manager), there is a rep who brings the client to the deal (hunter), and a rep who then accompanies the client (farmer).
The assembly line model is used in large companies with a long transaction cycle and full-fledged customer support.
Roles in a large sales department
In extensive corporate settings, the sales department typically comprises a diverse team with various roles. As your sales team grapples with the increasing volume of business, it may be opportune to consider introducing new roles to fortify your sales organization:
- Sales director. The director of sales is responsible for the strategic direction of the company’s sales team. They set sales targets, monitor KPIs and bolster overall sales team performance.
- Sales manager. Sales managers usually report directly to the sales director. They are tasked with managing the sales team and generating comprehensive sales reports.
- Sales trainer. A sales trainer is dedicated to enhancing the sales team’s effectiveness by equipping members with essential tools, resources, and skills. Their responsibilities include onboarding new employees to the sales process, crafting training plans, and evaluating intern performance. In the absence of a designated sales trainer, the team leader or sales manager assumes coaching responsibilities.
- Account manager. The account manager guides customers through the sales pipeline, ensuring a smooth journey to commissioning. Account managers also maintain relationships with existing customers, fostering return business.
- Sales development rep (SDR). Also known as lead managers, SDRs focus on prospecting and qualifying leads. While they facilitate leads through the sales pipeline, their primary role is not closing deals; instead, they aim to engage a broad spectrum of leads and determine their potential as valuable customers.
More ways of looking at sales organizational structure
In addition to all of the above, if your company is large, you can employ diverse external sales structures to enhance operational efficiency. Examples include:
- Geographical sales structure
— Sales reps (or sales teams) are segmented into GEOs, with each rep (or team) assigned to a specific service area.
— Sales representatives operate exclusively within their designated areas.
- Product or service line structure
— Organization based on the products or services, with distinct sales representatives or teams responsible for specific product lines or services.
— This approach avoids confusion by preventing attempts to sell a wide range of offerings simultaneously.
- Account-based selling
— Emphasizes delivering a personalized customer experience.
— Collaboration between sales and marketing teams to cater to individual accounts, crafting tailored solutions to address unique needs.
Final thoughts
What sort of sales organization structure suits your team best? The answer hinges on your company’s size and the scale of your sales team. However, irrespective of these factors, establishing a well-structured sales organization is crucial. Implementing such a framework guarantees clear delineation of roles and responsibilities within the department, fostering cohesion and enabling concerted efforts toward shared objectives
If you want to reach new GEOs and audiences, maybe it is all waiting for you on Telegram? We’ve prepared some material about Telegram audiences. What are the messenger’s users like this year? How old they are, what they do, and what they are interested in!
