Sales is a cornerstone of the American economy and, as a profession, employs a significant portion of the U.S. working population. According to the U.S. Bureau of Labor Statistics (BLS), more than 13 million people were working in sales or a related occupation in 2020.
Sales managers are vital to the success of many companies. Their responsibilities include leading sales teams and developing and implementing sales strategies to ensure profitability. They also train sales staffs, set goals, and analyze consumer data.
Employment of sales managers is projected to grow over the next decade as companies place an even greater emphasis on customer service. In addition, because sales managers work in virtually every industry — retail, insurance, technology, health care, and more — a career in sales management has many paths to entry.
Are you a people person who’s good with numbers? Then you may be interested in a career as a sales manager. Explore a sales manager’s salary, responsibilities, and job outlook, as well as what it takes to become a sales manager, to figure out whether this career is right for you.
The easiest answer to the question, What does a sales manager do? is that the responsibilities include overseeing an organization’s sales team and sales strategy. Although the duties may vary depending on the industry or the size of the organization, they generally involve directing the distribution of goods and services, establishing sales territories and sales goals, and training sales workers.
A company’s sales strategy is only as effective as its sales staff; therefore, recruiting and training new employees is one of a sales manager’s chief responsibilities. A sales manager should know how to identify and recruit talented salespeople and develop training programs to ensure their success.
Sales managers may not always be directly involved in the sales process, but they still have a very customer-focused role. Sales managers must balance customer and employee satisfaction while never losing sight of the ultimate goal: ensuring profitability for the organization as a whole.
Additionally, sales managers often:
● Grow the customer base through direct sales techniques, cold calls, and business-to-business marketing visits
● Project sales and analyze sales figures to determine the profitability of products and services
● Track consumer preferences to inform the sales and marketing strategy
● Address and resolve customer complaints
● Manage sales team finances, including preparing budgets and approving expenses
Types of sales managers
Many different kinds of sales managers exist, with duties that vary by industry. Many sales manager roles, however, can be divided into two categories: business-to-business (B2B) and business-to-consumer (B2C).
● B2B sales managers oversee the sale of goods and services between businesses, such as a manufacturer selling to a wholesaler or a wholesaler selling to a retailer. Sales managers who lead sales teams that sell software to companies or direct wholesale food sales to supermarkets are examples of B2B sales managers.
● B2C sales managers are involved in direct sales between businesses and consumers, typically in retail settings. Sales managers at car dealerships or department stores are examples of B2C sales managers.
Work environment
Sales managers have a lot of responsibility in leading their organizations’ sales strategies. In most cases, the job is full time, often involving additional hours during the evenings and weekends. Depending on the size of their organizations, sales managers may have to travel to national, regional, and local offices and to the offices of organizations that carry their products or use their services.
Because sales managers are in a leadership role, they generally make significantly more than other sales positions. According to the BLS, the average annual salary for sales managers was $132,290 as of May 2020. A sales manager’s salary varies considerably depending on the industry or the kind of product the sales manager is selling.
The following are the highest-paying industries for sales managers based on BLS data, along with the median annual wages for sales managers in those industries:
● Finance and insurance: $163,630
● Professional, scientific, and technical services: $155,490
● Manufacturing: $139,340
● Wholesale trade: $131,420
● Retail trade: $92,950
Sales managers in the bottom 10% of earners made less than $63,170, while those in the highest 10% made more than $208,000.
Many employers pay sales managers a combination of a base salary plus commission and/or bonuses. Commissions are typically a percentage of sales, while bonuses may be based on one or a combination of the following performance measures: the individual, all the salespeople in a particular group or department, or the organization as a whole.
As with salaries, commissions and bonuses vary widely depending on the industry, the size of the organization, and other factors. According to Indeed, the average annual bonus for U.S. sales managers was $15,000 in 2020; the average annual commission was around $24,000.
The sales manager job outlook is fairly stable. The BLS has projected employment of sales managers to grow by 7% from 2020 to 2030, about as fast as the projected average for all occupations. That comes to roughly 27,900 sales manager jobs added over the next several years.
The number of job opportunities for sales managers will depend largely on how much growth or contraction exists in their industries. According to the BLS, the following industry sectors accounted for roughly two-thirds of all sales manager positions in 2020:
● Wholesale trade: 20%
● Retail trade: 17%
● Professional, scientific, and technical services: 13%
● Manufacturing: 11%
● Finance and insurance: 10%
Impact of online shopping
A significant factor impacting the retail sales profession is the rapid rise of online shopping. According to a report from the United Nations, online retail sales accounted for 16% of global retail sales in 2019. In the U.S. alone, online sales totaled nearly $600 billion, 11% of all retail sales. In 2020, fueled in large part by the COVID-19 pandemic, online sales jumped nearly $200 billion in the U.S., accounting for roughly 14% of all retail sales.
With online shopping taking up an increasingly greater share of retail sales, thereby cutting out any intermediary, fewer sales workers are expected to be needed, particularly in the retail sector. The BLS has projected employment of retail sales workers to actually dip slightly from 2019 to 2029, shedding nearly 20,000 jobs (out of more than 4.6 million).
However, brick-and-mortar retail stores are expected to compensate for this shift by greatly emphasizing customer service as a way to compete with online sellers. Sales managers will be needed to lead this strategic mix of online and brick-and-mortar shopping, potentially translating to sustained demand for experienced sales professionals.
Interested in a career in sales and trying to figure out how to become a sales manager? As with many other occupations, a sales manager position will inevitably require some combination of education and work experience. How much of each depends on factors such as the industry and the size of the organization.
While no clear-cut path to a career as a sales manager exists, most employers are looking for certain key bullet points on your resume. Beyond that, you can boost your credentials and stand out from the crowd in several other ways.
Education
You generally need at least a bachelor’s degree for most sales manager positions, and a graduate degree can help give you a leg up on the competition. Some organizations may only require a high school diploma, coupled with some work experience.
Courses in business law, management, economics, accounting, finance, mathematics, marketing, and statistics can provide the foundational knowledge you need to enter into a sales manager role. Additionally, coursework that fine-tunes your computer skills is also valuable for record-keeping and data management.
Certain sales manager positions may not require any formal education. Retail sales managers often begin their careers as cashiers or customer service representatives, accruing valuable experience and rising through the ranks to sales manager roles.
Experience
Employers prefer sales manager candidates to have some work experience. The amount of experience varies, but employers typically seek candidates with anywhere from one to five years of experience.
The professional background necessary to become a sales manager also varies, but aspiring managers usually have experience in a sales or related occupation, such as retail sales worker, wholesale and manufacturing sales representative, or purchasing agent.
Spending time in a lower-level sales role can provide you with the fundamental sales knowledge you’ll need to succeed as a sales manager. If a company promotes you to a sales manager role, lower-level sales experience will allow you to become familiar with both the company’s products and its culture. It will also help hone essential leadership and interpersonal skills that are vital to achieving success as a sales manager.
The sales manager salary is likely to be higher the more experience a candidate has.
Certification
Certification isn’t a prerequisite for most sales manager positions, but it can give you a competitive edge in your job search. Several different sales certifications can help you boost your credentials, including the following:
● Sales Management Certificate Program: The Sales Management Certificate Program from the American Management Association is designed for newly appointed or aspiring sales managers. The certification program covers an array of subjects, such as management communication styles, recruiting and interviewing skills, and team-building principles.
● Certified Professional Sales Person: The CPSP certification from the National Association of Sales Professionals (NASP) is for sales executives, CEOs, and other sales professionals. The certification program educates you on modern sales strategies and helps you hone valuable communication skills that are essential for success in sales.
● Certified Professional Sales Leader: The CPSL certification from the NASP provides training to help you move into a sales leadership role. The certification program educates you on team-building techniques and empowerment strategies, so you can get the most out of your team.
If you want to become a sales manager, you’ll need a wide range of skills. The following are some essential traits that are sales manager requirements:
● Customer service
● Sales planning
● Delegation
● Time management
● Problem-solving
Sales management also demands various leadership and interpersonal skills, along with more technical and analytical expertise.
Leadership
Sales managers need to know how to engage and motivate their teams and provide them with the resources they need to succeed. A strong training program, which educates staff on sales tactics and product knowledge, is a key component of this. Sales coaching is more individual. It involves helping sales staff members develop their talents and encouraging habits and behaviors that can help the team achieve long-term success. Sales management also entails evaluating your staff members’ performance and developing strategies to help them meet their goals.
Collaboration
Sales managers must work closely with other department heads in an organization. For example, the marketing department identifies new customers for the sales teams to target. The relationship between these departments is crucial for organizations that want to expand their customer base.
Communication
As a sales manager, you’ll need to know how to communicate effectively with your customers and colleagues. A lot of your time will be spent in meetings with sales representatives, other department heads, and dealers and distributors. Effective communication will allow you to build strong relationships — a bedrock of any sales job — with your customers and coworkers.
Data analysis
Sales managers regularly analyze statistical sales data. This information helps them understand customer habits and determine sales potential and inventory requirements for different products and stores. This data is critical to forming a sales strategy. Managers use data to target geographic areas and demographic groups that have the most potential to boost sales. Mathematical prowess is also essential for sales managers — understanding how to interpret budgets and financial reports. This will help you determine how successful your sales team and strategy are.
Businesses need strong sales to be profitable, and sales managers are critical to achieving this goal. Sales managers lead their companies’ sales teams and develop their sales strategies. By analyzing data and working with other department heads, sales managers can find new customers and boost sales.
Although employment for some sales positions is expected to shrink in the coming years, the job market for sales managers looks promising. As online sales continue to make up a bigger chunk of the economy, organizations will need motivated, knowledgeable sales managers to help them develop sales strategies that incorporate online and brick-and-mortar shopping, with a greater focus on customer service. Because leadership and expertise are so vital in the role, sales manager salaries typically reach the six-figure range.
The right combination of education and experience can help you hone essential leadership, communication, and analytical skills and put you on the path to a career as a sales manager. Our recommendation engine can help you figure out whether this is the right career choice for you.
Find your path
- American Management Association, Sales Management Certificate Program
- Business News Daily, “5 Best Sales Certifications to Better Your Career”
- CareerBuilder, The Career of a Retail Sales Manager
- Indeed, How Much Does a Sales Manager Make in the United States?
- Indeed, 20 Sales Manager Skills
- LinkedIn, “8 Habits of a Great Sales Manager”
- National Association of Sales Professionals, Become Certified as a Leader in Sales
- UN News, Global E-commerce Jumps to $26.7 Trillion, Fueled by COVID-19
- U.S. Bureau of Labor Statistics, Retail Sales Workers
- U.S. Bureau of Labor Statistics, Sales and Related Occupations
- U.S. Bureau of Labor Statistics, Sales Managers
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