When you tell someone that you work in sales, how do they react? Some people may respond positively because they assume you enjoy fast-paced, extroverted work. Others may fall prey to old stereotypes that paint salespeople as pushy or even deceptive. Working in sales isn’t easy, not only because of the demands of the job but also because of how salespeople can sometimes be perceived.
In truth, sales is based on relationship-building. That means the best salespeople excel at making connections—a far cry from the aggressive techniques that too many people still associate with sales. And though the skills necessary for success in sales may seem mysterious or elusive, many experienced salespeople follow well-practised strategies that those new to the field can easily adopt.
In this lesson, you’ll learn more about what sales is—and isn’t—and how important human connection is for success. You’ll also learn a few essential sales terms and how every department of an organisation is vital to making a sale.
Watch the video below to learn what sales is and get a broad overview of the terms and practices you’ll need to understand sales.
What Is Sales?
Sales describes the activities and operations that lead to an exchange of goods or services for money. Salespeople connect with prospective buyers to give them the solution they need.
With an infinite number of products, services, and consumers, a successful sale requires imagination, curiosity, and creativity. Effective salespeople know that their work is less about money than it is about human connection.
Sales Is About Building Relationships
While salespeople do strive to make deals, sales is not just about making money. It’s about forming positive, mutually beneficial relationships. No matter what you’re selling or to whom, sales always involves people.
Even if you’re trying to sell to a global enterprise, you will still interact with an individual—someone with a unique background and distinct interests. Seeing the contacts you interact with as humans rather than just opportunities will help you make more sales. And those sales will be defined not simply as successful transactions but as enduring relationships with the potential for future sales.
Here are a few tips that will keep your focus on relationship-building in sales:
- Know your potential customers. Ask questions and be transparent. Get to know their struggles and challenges, and frame your conversations so that they see you as an ally rather than just a business contact. Above all, treat every customer or potential customer with respect and integrity.
- Understand what you’re selling. You can’t sell something you don’t understand. Can you explain not only what you’re selling, but also how it stands out from the competition?
- Sell a solution, not a product or service. Ask yourself how what you’re selling benefits your customers’ lives. For example, selling a coffee maker is easier when you stop explaining its features and start emphasizing the quality of the coffee it makes. By selling solutions, you focus on helping the customer, not making the sale.
"You don’t close a sale, you open a relationship if you want to build a long-term, successful enterprise."
– Patricia Fripp
Common Sales Terms
As you build relationships in sales, you’re likely to run into specific sales terminology. Knowing these internal terms is essential to becoming an effective salesperson.
The list below includes a few key sales terms. While not an exhaustive list, it offers an overview of concepts that are broadly applicable to most salespeople.
Keep in mind that many teams have their own definitions for terms common to their industry or solution. Knowing how your organisation and your sales team interpret key concepts will help you communicate internally and externally.
Types of Sales
Inside sales. Making sales online or by phone rather than in person. This is also known as remote or virtual sales.
Outside sales. Going into the field to meet with prospective customers in person.
B2B sales. Business to business, or sales between two organisations. For example, when an office supply store sells desks to an accounting firm setting up a new location, the sale is considered B2B.
B2C sales. Business to consumer, or sales that provide solutions for individuals. Imagine the same office supply store has a website where individuals can buy personal office supplies. This is an example of B2C sales.
People in Sales
Influencer. An individual who can affect others’ purchasing decisions because of their authority, knowledge, position, or relationship. For individuals, peers can be considered influencers. For businesses, employees or consultants whose work will be impacted by your solution may be influencers.
Champion. An individual who pushes an organisation to make a purchase based on their understanding of its benefits.
Customer. An individual or organisation that enters into a sales agreement to gain a product or service.
Decision-maker. The person who ultimately decides whether to purchase your solution. Unlike the champion, the decision-maker has the ultimate authority to decide whether to make a purchase.
Gatekeeper. The person who screens contacts for the decision-maker—for example, a receptionist or administrative assistant.
User. A person who is granted access to a business solution, usually a service.
Sales Tools and Tracking
USP. Unique selling proposition. Your solution’s USP is the story and features that separate it from the competition.
KPI. Key performance indicator. KPIs are the metrics that you and your team will track to determine your progress.
CRM. Customer relationship management. A CRM solution helps salespeople keep records of all prospects and customers.
Territory. The population or geographical area assigned to a salesperson.
Sales Concepts
Pipeline. A sales pipeline tracks sales opportunities as they progress through the purchasing process. Though the names used for different pipeline stages may vary, the pipeline stages show where opportunities are in terms of qualifying, discovering, meeting, proposing, and closing.
Funnel. The sales funnel measures how opportunities convert from one stage of the pipeline to the next. The mass of prospective customers narrows down in a funnel because not every contact who enters will want to complete the full sales process.
Forecast. A forecast estimates how many deals are likely to close within a certain time period. This helps salespeople know how near they are to hitting their goals— and helps management decide how to allocate the team’s time and resources.
Methods inform the way salespeople carry out their process. By understanding these terms, you can develop a way of selling that best fits your solution and your customers.
Who’s on a Sales Team?
Sales may feel like a solitary pursuit, with the salesperson wholly responsible for forming relationships with potential buyers. In reality, however, salespeople are always part of a larger team. Though the salesperson is the primary customer contact, many departments work behind the scenes to make sure sales—and the relationships they’re based on—go smoothly.
A successful sales operation depends on hard work in all departments.
Flip the cards below to learn how different employees contribute to a sale:
Summary
Since sales depends on building positive relationships, successful salespeople strive to meet their customers’ needs. A salesperson can forge these human connections by knowing their potential buyers, understanding what they’re selling, and selling solutions rather than products.
Using the appropriate method and process, salespeople can turn one-time sales opportunities into long-term relationships. A successful sale depends on collaboration across the organisation.
- Self-care is essential for salespeople. The field is fun and exciting, but long hours, the pressure to meet goals, and the prevalence of rejection can lead to burnout. Make sure that as you take care of your customers, you also take care of yourself.
Dive into a critical topic in the next lesson: the importance of ethics in sales. Click “Mark Complete ✓” to continue.