Key Sales Management Tools in Retail
What is a sales management system? It is a set of activities aimed at solving all the company’s priority tasks. Special tools make it possible to combine several key processes that allow step-by-step implementation of the planned strategy.
Let’s list the main sales management tools:
Planning. Without planning, it is impossible to achieve strategic goals. A work plan is necessary for both the sales department and individual managers. The plan should indicate sales volumes, the number of calls, presentations, meetings, deals, etc.
Organization. It is necessary to improve the efficiency of activities, sales growth, timely and high-quality solution of all existing tasks. Organization implies the development of regulations and standards that are mandatory for all employees of the company.
Control. In order to make correct and objective management decisions, it is important to constantly monitor that the cayman islands phone number material organization’s personnel work efficiently, quickly and effectively. It is necessary to regularly compare actual results with planned ones.
Analysis. Helps to identify key market trends, prevent problems during sales, identify the most promising and 5 prospecting techniques that actually work unprofitable areas from a financial point of view, and maintain competitiveness.
Motivation. To achieve the desired results from sales management, each employee must be motivated to implement text services the strategy promptly and correctly. If there is no incentive, the quality of the activity decreases. As a result, sales volumes fall.
Developing and implementing an effective strategy, as well as competently managing sales, is possible only through the comprehensive use of all tools and clear goal setting. And the strategy itself will help move in the right direction and solve priority tasks.
Key indicators of the retail sales management system
Margin, or trade markup, is the economic basis of retail trade. Margin is the difference between the purchase price and the selling price. It is what forms the main income of a retail company. When selling food, the trade markup is usually no more than 25-30%. When selling clothing, it can reach 200%. The resulting margin allows the company to cover current expenses for renting retail space, as well as pay salaries to staff, pay for security, telephone, cleaning services, etc. The remaining funds form the profit of the trading company. It varies within 1-3% in large chain grocery retail. In non-food retail, it can be up to 20-30% and even 50%.
Key indicators of retail sales management system
Source: shutterstock.com
But retail trade receives income not only due to the margin. Retail earns money from the placement of advertising materials, promotional events, the sale of trading places and shelves in stores. In order for a product (relevant for the sale of food products) to be sold in a particular Russian retail chain, a company must pay to “enter the chain.” This is how operators of this market increase their profits.
To classify a retail chain, two features are used: stationarity and product range profile. According to stationarity, a chain can be:
stationary (shops);
semi-permanent (pavilions, tents, stalls, kiosks);
mobile (delivery and delivery).
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According to the second sign:
mixed (selling goods from one or 2-3 groups or complexes);
specialized (selling individual subgroups and types of products);
universal (selling all groups of either food or non-food products).
Having analyzed the features of each type of retail trade activity, you will understand that today’s development trends in this area should be based primarily on the ratio of store and non-store forms of product sales.
