The commercial director duties and functions briefly. Commercial director: duties and functions

• How the concept of "commercial director" has evolved.
• Job responsibilities and functions of the commercial director.
• Which companies do not need a commercial director.
• In what cases is it advisable to rename a commercial director to a sales director?
• At which enterprises the commercial director can be responsible for purchases.

Commercial Director deals with activities related to the supply, economic and financial activities and sales of the company.

The term "commerce" has become fundamental for people who were the first in Russia to start working as commercial directors. After all, many areas of the domestic economy in the 90s were based on resale. Therefore, the whole business was based on commerce - to acquire on more favorable terms, in order to then sell at a higher price. These tasks were assigned both to ordinary shuttle traders and to entire companies that today managed to reach millions of turnovers.

At that time, many companies did not even have the positions of sales director, purchasing director, and the term "marketing" was known only to a few. The commercial director was assigned a second role after the general director, who was usually a shareholder or owner of the business.

CEO speaking

Ilya Mazin, General Director of ZAO Office Premier, ErichKrause group of companies, Moscow

Often people in the position of commercial director grow into successful owners and managers of enterprises. This kind of career progression is much less common among financial or administrative directors. Commercial directors in 80% of cases are specialists with experience in sales departments, in the positions of managers or heads responsible for VIP areas. Commercial directors sometimes become specialists who have left the purchasing departments.

The commercial director is assigned official duties in several areas of activity simultaneously. Therefore, he has sufficient skills to move to a higher position. Therefore, in the position of a commercial director, a person acquires quite valuable, important experience, mastering the necessary skills and forming useful contacts for future work.

When the whole business and markets became more civilized, separate tasks began to separate from commercial activities - including the functions of marketing, purchasing and sales. Therefore, the role of commercial directors in the work of companies has undergone certain changes.

KPI for commercial director: calculation examples

The editors of our magazine, using examples, figured out for what indicators and in what amount it is worth rewarding the commander.

Job responsibilities and functions of the commercial director

The area of ​​responsibility of any commercial directors includes a number of basic functions:

1. Defines distribution channels for goods and services.
2. Strategic planning of the company.
3. Work with providers.
4. Managing the work of the sales department.
5. Control of budgeting in all components of the company.
6. Company marketing coordination.
7. Reducing business costs.

For some companies, the interpretation of the position of commercial director may differ. Let's consider this issue in more detail with practical examples.

Commercial director = head of sales department

In this case, on commercial director assigned a minimum set of functions. He will only be responsible for the sales of his company. A more appropriate job title in this situation would not be Commercial Director and director of sales. To prevent a person from feeling downgraded, you can rename the position during the change of leader in this position.

Expert opinion

Andrey Milyaev, Commercial Director of the Hosser group of companies, St. Petersburg

In our company, the commercial director will manage two sales departments - complex telecommunications projects and engineering equipment. Now we are engaged in the reorganization and restructuring of the business processes of our company. The purpose of such transformations is to increase the efficiency of our interaction with the market, and internal interaction in the company itself - between departments that are responsible for the areas of logistics, sales and production. It is important that management in the company is provided from one point - for a single policy of working with the market. In the future, when business processes have been formed, it is necessary to select employees from the existing employees of the sales department, who will become the heads of these departments.

Commercial Director = Sales Director + Marketing Director

This option corresponds to the position of director of marketing and sales, which has become common in Western practice. A marketing director and a commercial director in one person need the ability to perfectly navigate the market trends, taking into account the peculiarities of the work of competing companies, the preferences and expectations of customers. But to manage sales in the market, maximum return is often necessary, which is why marketing itself fades into the background. As a result Commercial Director may not have enough time for marketing. Consequently, the necessary marketing tools may be lacking, as well as the skills to apply them in practice, a strategic view of the medium-term prospect of market development.

• Material motivation of personnel. CEO Tips

Commercial Director = Director of Sales + Director of Marketing + Head of Purchasing

The combination of marketing, sales and purchases in one hand provides a set of important advantages when choosing the most popular product at the moment, also with an understanding of the consumer qualities of products (quite important when choosing products). This option becomes especially relevant, first of all, for intermediary and trading companies. But it should be used quite carefully if the company does not cooperate with regular suppliers, and therefore it is necessary to analyze the competitive market regularly to find the most suitable purchasing conditions. In such conditions, the likelihood increases that when striving to fulfill the sales plan, the manager will not have the opportunity to pay due attention to finding the best options for working with his supplier.

Expert opinion

Julia Queen, commercial director of ZAO National Distribution Company, Moscow

The main principle of our organizational structure is the efficiency of decision-making, mobility. Therefore, the entire sales unit (including purchases, marketing and sales) is combined, these functions are assigned to the commercial department. The tasks of the commercial director include not only control, but also the very work with clients, the conclusion of contracts for the supply of goods with large manufacturers, monitoring price trends in their market. This organization of work allows us to have reliable information without distortion. For example, it can be distorted within companies in which these areas of activity are assigned to different departments (inconsistency of actions is possible). Thanks to the organizational principle, our company ensures efficient management of its business processes with cost reduction.

Commercial Director = General Manager

A similar option is possible, when the General Director is not formally ready to transfer his functions of the head of the company, but in fact he is not engaged in operational management. Consequently, his tasks are assigned to his "right hand" - the first deputy, the executive director, and in companies in which priority is given to commercial activities, these functions are assigned to the commercial director. Personally, I oppose such a combination of functions. The General Director needs to distribute resources in all areas of activity. And when conflicts arise (for example, between the financial and commercial departments), the CEO should become an independent arbitration. When managerial functions are assigned to the commercial director, there is a danger that these processes will be transferred in favor of the commercial departments.

Expert opinion

Dmitry Grishin, Commercial Director of Aqua Star, Moscow

I work as a commercial director, but in fact I am entrusted with the functions of the general director. Because the owner of our company, with his ambitious plans to conquer new directions (not related to our core business), seeks to achieve full control of the company's activities, but at the same time keep enough time to work on new projects. Consequently, some problems arise - important decisions of the company take too long.

Together, we managed to get away from total control (over any penny spent), certain issues that could affect the company's work were highlighted - the functional characteristics of equipment, logistics, financial factors related to loans and their repayment. These issues are resolved jointly with our CEO. At the same time, all issues remain under the control of the General Director.

Consequently, the company does remain under the control of the CEO, but he gets more free time.

Dmitry Kurov, Commercial Director of ISG, Moscow

From personal experience, I can say that a commercial director can achieve work efficiency, provided that he is “balanced” by a financial director. Because otherwise the commercial director's job responsibilities can be largely focused on commerce, which misses out on operational efficiency issues.

In most cases, the reason for the misunderstanding of the general and commercial directors is the solution of tasks of different levels by them. I had to work when the general director set the vector of activities that impeded commercial development from the position of a commercial director. In reality, the price of the company's shares, which was influenced by many factors, turned out to be more important.

Which companies do not need a commercial director

A commercial director is not needed by companies in which the sale of services or products is not particularly difficult. Basically, these are companies that occupy a market position close to a monopoly (taking into account their location, product specifics or other factors). The role of the commercial factor is low in companies that offer individual or exclusive developments. Such companies can work in any industry - from the development of highly specialized, professional software to complex engineering products. In this segment, greater importance is given to representatives of the creative or production department, their role is reduced to the display and presentation of developed products. Often one of the top managers manages the salespeople, so there is no particular relevance in the commercial director.

CEO speaking

Ilya Mazin, CEO of Office Premier holding, ErichKrause group of companies, Moscow

The need for a commercial director arises when a company has to link 2 factors - obtaining favorable terms of supply and marketing. In the absence or decentralization of one of these functions, then there is no need to appoint a commercial director.

Also, very large or too small companies do not need a commercial director. After all, small companies simply cannot afford the cost of managers. As a rule, the commercial director in this case is replaced directly by the owner of the company.

If the company has several founders, then they usually distribute management areas among themselves. One of them takes over the block of earning money, the second is assigned the administrative and economic complex, etc.

In the case of a large business, the tasks of the commercial director are often distributed among the heads of areas.

But in the work of medium-sized companies, the commercial director becomes a key figure - a top manager, on whom the profitable part of the business directly depends.

The commercial director is a key position for any company. He is primarily responsible for customer service and company profits. But there is some confusion about what is included in the duties of a commercial director. P. Shukhman and E. Evstyukhina, Ankor's recruitment consultants, talk about this.

In different companies, people in this position actually perform different functions. Recently, the position of commercial director and sales director is also often confused http://professional-education.ru/director-sales.html. The maximum range of what a commercial director can do is to simultaneously manage sales, marketing, procurement, and logistics services. Often the position of commercial director is perceived only as the head of the sales and marketing service, sometimes only as the head of the sales service. To date, there is a general idea that this person is in charge of the sales of the company.

Where is a commercial director required?

There are a lot of vacancies for a commercial director on the labor market. It is very difficult to accurately calculate their number, but we can certainly say that there are more than a hundred of them, open all the time. The specificity of most of these vacancies is that they are open for a very long time. This is due, firstly, to the long process of searching and selecting a candidate, and secondly, to the fact that often, having come to the company, new commercial directors leave after less than a year, and sometimes less than three months. This situation, in turn, is explained by the complexity of building relationships with the founders.

Such vacancies are mainly open in poorly structured Russian companies. The reason for the long search is that the company has never had a commercial director, but the volume of operations is growing, and the management of the old methods is ineffective. The founders are trying to increase the efficiency of the business by attracting a competent manager from the outside.

Sometimes a company has had one commercial director in its history, and this is either one of the founders or an employee who has served since the company was founded. Now this person is switching to other tasks or getting promoted to general, and he needs a strong replacement. As a rule, in this case, the founders also rely heavily on the literacy of a specialist and on new management methods that will significantly increase efficiency.

If we are talking about a structured business (primarily Western companies), where moods and personal sympathies are less important than professionalism, then the situation here is fundamentally different: a commercial director is a position whose functionality is clearly spelled out in the structure of the company's business processes.

Perhaps only Western companies have clear requirements for education and skills. Russian companies very often ask to find a "wizard". This is a kind of dream of a know-it-all who will come and single-handedly, with little or no support, will take the business to a high level. In principle, such people exist, but they usually already own their own business. In such cases, I enter into a process of negotiations with the client, often lengthy, the purpose of which is to identify the portrait of the commercial director that this company needs. It happens that it turns out that the company does not need the declared “know-it-all”, since in fact it requires the solution of specific local problems, and after that you can already think about more.

Basic requirements for a commercial director

This worker must be able to:

• develop and supervise the promotion of the company's products on the market;
• Discuss the budget with the CFO or CEO;
• form and control distribution channels;
• create, together with the director of the personnel service, a system of material motivation for the company's employees;
• participate in the formation of personnel policy for hiring employees of the sales department and keep this unit under control;
• control sales reports;
• personally conduct especially difficult negotiations with large clients;
• sign contracts;
• participate in the development of pricing policy and discount campaigns;
• approve or reject advertising projects, promotion programs, branding.

Note. For a Western business, the candidate must:

• have an MBA degree,
• speak English at least at the level of reading commercial documentation,
• have a long experience in managing sales in a western company (from 5 years).

If a person’s functionality includes marketing, logistics, procurement, then experience in these areas is often required as well.

Director's portrait

Personal qualities - this is perhaps the key point when looking for a commercial director. They include management style, delegation of authority, features of interaction with subordinates. Of course, a commercial director requires high communication skills and the ability to manage people. His personality type itself should be determined by the corporate culture of the customer company, if it has been formed, or by the personality type of the founder or founders, if the corporate culture is not expressed in the company. Customers, as a rule, are also interested in general management skills and skills in organizing forecasting, planning, budgeting, etc.

Big salary for the chief merchant

The commercial director (director of sales) receives one of the most significant remuneration in the company. Average offers start at around $5,000 in gross monthly income. Over the past year, the maximum that I have seen is up to $20,000 of total monthly income in a large Russian company.

Western companies and some Russian companies also offer a social package, which usually includes:

• medical insurance;
• car (or compensation for the use and maintenance of your own car);
• nutrition;
• mobile phone traffic.

Reliability check

The candidacy of the commercial director is necessarily checked, but each recruiting agency has its own methods. In any case, unfortunately, none of the existing assessment methods gives a 100% guarantee. The only relatively objective assessment is the direct work of the candidate in the employing company, i.e. the probationary period, which is usually six months for this position. If a person for some reason does not pass it, then the recruiting agency makes a one-time free warranty replacement.

What attracts candidates in the first place?

In order to find the most suitable top manager for your company, formulate requirements for the position, explain to candidates their future responsibilities and not scare professionals away with unreasonable expectations, you must first imagine yourself in the place of a future commercial director and live in your imagination the usual working day of this manager . Many illusions about how much one person can do in 8-10 hours disappear after such an exercise, and a fairly clear description of the position appears.

It is very important that the general director (founder or owner) clearly defines for himself the following parameters, which will be transferred to the commercial director:

• degree of his freedom;
• terms of reference;
• available resources.

First of all, the commercial director is responsible for all matters related to clients and the main profit of the company. But there is always confusion about commercial director job responsibilities.

The fact is that in different companies, commercial directors perform different functions. Also, two different positions are very often confused - commercial director and sales director. The maximum segment where a commercial director can work is the simultaneous management of sales, logistics, procurement and marketing services. It is also often thought that the duties of a commercial director include only the management of the sales department.

Where the skills of a commercial director may be required

Today, there are a lot of vacancies for this position, but the requirements for a commercial director are not small. The whole specificity of vacancies for this position lies in the fact that they have been open for a very long time. This leads to the conclusion that the search itself and further selection of candidates takes a very long time. Also, the vacancy is very often vacant due to the fact that new commercial directors cannot hold out for a long time in their place (up to a year of work). All this is due to the complexity of building relationships with the founders of the company.

Most often, the vacancy of a commercial director is open in poorly structured companies in Russia. The reason is that such companies have never had commercial directors up to this point. The volume of transactions within the company is gaining volume and managing the company by the same methods becomes practically inefficient. As a result, the owners of the company are trying to increase the level of efficiency of the company by attracting experienced managers and commercial directors.

It also happens that during the entire existence of the company it had only one commercial director, who was one of the founders of the company or an employee who worked from the beginning of the company's opening, and then was promoted to the general director and now a new commercial director is required. In this case, stringent requirements will be imposed on the new candidate - management literacy, new methods to achieve the goal.

When it comes to structured companies, then in this case, the mood or personal sympathies will play a lesser role than the level of professionalism. In this position, the commercial director is a person who performs clearly defined functions in the structure of the company's business processes.

Most often, only Western companies have any clear requirements for education or skills. As for Russian companies, they just want to find a "magician". That is, they need a person who will come and personally solve all the problems and raise the company to a new level.

Key Responsibilities of a Commercial Director

The main responsibilities of this position include the following:

• The commercial director must organize the management of the material and technical supply of the enterprise, as well as engage in activities for the storage, transportation and further marketing of products.
• The director must coordinate the development and draw up long-term plans for the logistics and subsequent marketing of products.
• Manages the development of all norms and quality standards for manufactured products.
• Recommends further development strategies to department managers and specialists of the financial department. Controls their quality of work.
• Responsible for the timely delivery of budget and financial documents, calculations, reports on the implementation of the plan.
• Monitors financial and economic performance and spending of funds
• Responsible for negotiations on behalf of the company with various counterparties of the company on any business or financial activities
• Acts on behalf of the company at auctions, stock exchanges, advertising campaigns and other events

It is also worth noting (as we said above), in some companies the duties of a commercial director may differ. His list of duties may also include:

• Development of a plan to promote a new product or service
• Discussing the budget and its calculation together with the CEO
• Control all distribution channels
• Creation of a program for material motivation of employees of the enterprise
• Participate in the creation of a new personnel policy of the company
• Manage sales reporting
• Negotiate with clients
• Develop new methods of pricing policy
• Make final decisions on advertising campaigns

It is worth noting here that if a person gets a job in a foreign company, then he may be required to:

• MBA diploma
• Have a good command of English
• Have at least five years of management experience

Functions of the commercial director

As we have already understood, the main tasks of the commercial director are the organization and direction of the activities of all departments that are in his segment. It is worth saying that his duties directly depend on the specifics of the industry of the company and the size of the organization.

In the course of his work, the commercial director interacts with various heads of different departments of the company. This list may include: accounting, marketing department, IT, logical service, financial department. Most often, the main functions of this position are joint strategic planning with different departments, the formation of marketing, pricing, financial, and personnel policies. He is also obliged to control the sale of goods and plan further sales. Its functions include monitoring the competitive environment and the market for goods and services. The commercial director must also expand and control all supplier relationships and form the budget for the entire commercial unit.

Personal skills of a commercial director

Here it is worth telling in more detail, since personal qualities are one of the key points when choosing a person for this position. The personal qualities of a commercial director should include a special management style, delegation of authority, and skills in interacting with company employees. Naturally, such a position requires a high level of communication skills and the ability to properly manage personnel. Any company will be interested in people who have general management skills and the ability to organize forecasting and budgeting.

Despite the above, each company has its own criteria by which the personal qualities of a commercial director are evaluated. Everything will directly depend on the current goals of the company and on the period of its development. So, it all depends on the life cycle in which the organization is now. Depending on this, the requirements are changing not only for management positions, but also for all employees of the company. We will talk about each life cycle of the company, and what personal qualities a commercial director should have in each of the cycles.

Initial stage of development

A person must have successful experience in building business models of companies from scratch. He must be able to form a new experienced team. Among personal qualities, during this period, innovation, creativity, rigidity in decisions, structuredness will be valued. At this stage, the commercial director must be able to quickly and efficiently make the necessary decisions. Have an objective point of view to deal with competitors.

The heyday of the company

During this period, sales are growing, there are already ideas for future periods in general market trends and plans for organizational development. In this case, the owners of the company most often need a person with successful experience in structured companies, who has considerable experience in optimizing all business processes. During this period, the director must be able to quickly and competently delegate authority and have a methodical approach to any problems. Already at this stage, thoroughness and consistency in the performance of work are more valued. It is necessary to work deeply into each problem in order to find the most effective and least expensive solution. At this stage, the director must adhere to normative guidelines and be tuned in to the systematic promotion of the goal.

— director of new projects development at Yandex. Previously, he was involved in regional expansion in the Gett taxi and Vigoda.ru coupon service, worked as a commercial director in the cargo transportation company Deliver.

We talked with Artem about what a commercial director is responsible for and what skills he should have in order to form an effective commercial department.

There is a stereotype that the commercial director is engaged only in sales.

In reality, there are many more responsibilities. A commercial director can be responsible for four areas at the same time - sales, purchases, logistics and marketing. But this is the ideal situation.

In practice, it all depends on the scope and organizational structure of the company. For example, in many companies that provide services, in principle, there is no logistics department, and in some companies, the production department is responsible for procurement. But it is more efficient if these departments are managed by one person.

The Deliver company is engaged in cargo transportation. In fact, logistics is the main product, so it is not singled out as a separate area. Everything related to sales, purchasing and marketing, the company reported to the commercial director.

Initially, in Deliver, the company's founder, shareholder and CEO were responsible for sales. But if a business needs significant growth in some area, they hire a specialist in this area. It was the same with us. When a transition to a new level was required, they decided to hire a commercial director.

At Deliver, he was responsible for sales, purchasing and marketing. We have transformed each of these areas.

#one. Changing the sales system

When I joined the company, the sales department was already working. Contracts were signed with the first clients, but:

approach was unsystematic

requirements for managers were unreasonable

department structure was complex

there was no clear tariff and credit policy

First of all, the department rebuilt: distributed tasks among employees and systematized work with clients.

We focused on direct sales, but started testing other channels in parallel. We launched agent sales through warehouse complexes, later partner sales with tender sites and banks, including Sberbank, Otkritie, and Tinkoff Bank.

#2. Regional expansion

In parallel with this, I was engaged in regional expansion. We have opened two offices - in St. Petersburg and Yekaterinburg. But in the regions, it became difficult to find reverse downloads for our machines. Moscow is a hub that accumulates cargo and distributes it among the regions, but the cargo does not come from the regions in the same volume, there is mainly intra-city and intra-regional delivery.

To solve this problem, we decided to grow deeper into the regions. In the course of work, different groups of clients were tested - from individuals to giant FMCG companies, whose cargoes are transported by hundreds of trucks every day.

#3. Work with clients

Many suppliers of goods and services want their customers to be giants. We were no exception. But in working with such companies, we encountered difficulties:

long delays in payments
individual document flow
specific product requirements

We focused on large local manufacturers and distributors of local goods - food, building materials. Medium-sized companies have fewer requirements and all processes are much easier to organize. The margin of business with them is higher.

The transition to customers of a different scale provided growth that allowed Deliver to break into the market leaders.

#4. Choice of sales channels

We started with direct sales. Then they tested marketing channels, spent huge amounts on marketing and PR, participated in conferences and exhibitions, tried agency and partner referral programs and loyalty programs.

After assessing the cost of attracting one client and its life cycle, we realized that direct sales are more profitable than others. And so we focused on them.

Marketing performs a supporting function - it is not an independent department, it helps direct sales. The task was to analyze these channels. We had several teams: one was engaged in marketing, the other was engaged in PR projects, the third was in BTL activity, indirect impact on consumers. Together we analyzed the results and looked for the most effective channels to attract customers.

Any commercial company is aimed at making a profit. In fact, the commercial director and his department are the structure that generates this profit. The commercial director communicates with clients, understands the internal processes of the organization and, of course, influences the financial performance of the company.

I studied the experience of successful commercial directors and managers in global companies and compiled for myself a list of five key qualities and skills of a commercial director.

#one. Leadership

A commercial director is a leader who is able to make quick decisions in a rapidly changing situation and lead people to their goals.

#2. strategic thinking

The commercial director must be able to rise above the turnover, above the situation and decide in which direction to move. Be able to apply new techniques and generate innovative ideas.

#3. Sales and communication skills

The work of a commercial director is closely related to communication - with customers, employees, suppliers and colleagues. He must be able to negotiate and understand the principles of sales.

#4. Organizational skills

One of the main competencies of a commercial director is the desire and ability to work in a team, to organize it. By motivating employees, encouraging and controlling them, the commercial director achieves success in his department.

#five. Personal effectiveness

Like any other leader, a commercial director must have a flexible mind. To do this, it is important to constantly develop, improve yourself, take courses and trainings.

In general, the creation of a commercial department consists of three steps.

Determine the profile of the target client. It is important to describe in as much detail as possible who, why and how will use your product or service.

Select the main sales channels. Based on the client profile, you determine the main sales channels: direct, through dealers or distributors, with an emphasis on online marketing or agency sales.

Select and train employees. As soon as you decide to whom and how you will sell, you assemble the right team.

Often, the head of the sales, purchasing or logistics department is appointed to the position of commercial director. These employees are more immersed in the production process and the process of making a profit, they directly influence it and know some of the tasks. It is easier for them to take on other tasks.

The commercial director also comes into contact with marketing. But the set of tools that he must master depends on the industry and the company's products.

Online tools are heavily used in marketing - it is important to understand them at least at a basic level. As a commercial director, you need to understand the general principles of operation and the main metrics that measure the effectiveness of campaigns. And you should not separate marketing and PR - they are interconnected.

The main task of the commercial director is to determine the group of clients who will be targeted by marketing campaigns and test the tools, finding the cheapest and most capacious acquisition channels.

The commercial director interacts with stakeholders - interested persons. Internal stakeholders are divided into three types:

founders
investors
staff

Investors And founders companies influence the definition of business strategy, budget negotiation, products and profits of the company. From personnel the speed and quality of work on creating a product, the provision of services and, in general, the speed of development of the company depend.

In interaction with managers - top management - in my opinion, the main thing is not to engage in political games. It is important to understand the tasks and goals of other departments and build communication based on the overall goals of the company. If you have the right reasoning and you say rational things, it is not difficult to convey to colleagues the usefulness of your proposal. The main thing is an honest and open dialogue.

Without delving into the essence of the work, one might think that sales department completely follows the line-staff principle. The commercial department is not a single whole: its functions and sales are divided into autonomous components, but at the same time they have the same value and are equivalent to the work of the entire department. Their only common goal is to get the buyer to buy this or that product. The fact that each component works independently in the commercial department should not negatively affect the work, each of the activities brings its own small contribution to the activities of the entire enterprise.

What does the commercial department in the company do?

Distinctive features of any activity are the presence of its direction and the organization of tasks to achieve the desired heights. The purpose of the commercial department is the acquisition by individuals or legal entities of goods and services offered on the market, or their exchange for other goods for mutual benefit. Interestingly, the elements operated by marketing are also operated by the commercial department. The organization of the commercial department is complex, but at the same time allows it to perform many tasks.

The main goal of the commercial department is the creation of a certain system of measures aimed at regulating the processes of sale and purchase, meeting demand and making a profit.

All processes regulated by the commercial department of the enterprise are divided into two types: technological and commercial.

Technological processes are connected with logistics. This concept refers to all operations performed during the transportation of goods (transportation, unloading, storage, packing, packaging). These operations are the continuation of the production process, and the direct movement of transport.

Commercial transactions are all processes, one way or another connected with the purchase and sale. This list also includes organizational and economic processes. It cannot be said that they are directly related to the purchase and sale, but these processes definitely affect the systematization of the trade flow.

Commercial operations are also functions of the commercial department:

• study of demand for goods, its forecast. Research of consumer demand for certain groups of goods;
• search and identification of suppliers;
• all actions related to the formation of an assortment of goods;
• assortment management;
• economic justification for choosing a particular supplier;
• organization of relations with suppliers;
• organization of service maintenance;
• conclusion and termination of contracts, all work with documentation;
• the choice of marketing techniques for the sale of goods;
• the use of marketing in social networks, advertising on the Internet, etc.
• evaluation and study of their own activities.

Examples of standards for the commercial department

The basis for the application of any techniques and actions in commercial activities should be the conditions currently prevailing in the market.

The correct and productive work of the commercial department of the enterprise will develop only with the full understanding of all the staff, what are the tasks of the commercial department:

• implementation;
• sales forecast;
• implementation policy - sales and service;
• studying the situation on the market;
• advertising, marketing, trade development;
• setting prices for the entire range of goods;
• packaging and distribution;
• commercial footage.

Responsibilities of the commercial department

Many firms still transfer advertising responsibilities to specialized agencies. The management of the enterprise determines only the policy of conducting advertising campaigns. But it's time to understand that advertising largely determines the policy of the company itself, the perception of the company by customers directly depends on it. The best solution in this case would be to introduce the post of administrator of the commercial department.

This person is needed in order to ensure that advertising reinforces the company's policy, but does not establish it. Good advertising is one of the important conditions for the sale and purchase of goods. Companies need to scale their efforts according to sales, production and distribution opportunities.

Market research

It does not matter where the information about the current state of the market comes from (advertising agencies, personal observations, using general information as a source), it is an essential component for marketing campaigns. Responsibility for finding information placed on top management will turn any knowledge gained into useless and unnecessary. It would be much better to assign it to the "working layer", then any information received will become a powerful planning tool for you. This market research technique helps to organize the activities of all layers of employees in the sales department, and also predicts sales. Market research is not yet so widely used in the work of enterprises.

Product range planning and pricing

Price setting in commercial departments by administrators has not yet taken root in domestic companies. The fact that prices should be fixed in commercial departments is considered heresy. But the fact that employees of the commercial department should have influence on the range of goods is clear to everyone. The compromise with which to get out of this situation will be the creation of a new headquarters for setting prices, which will be supervised by commercial administrators.

Forecasting and planning income and salaries

The planning of future sales volumes and incomes depends on the planned profit. This duty is usually assigned to all levels of management. However, in order to calculate the planned profit, you need to make a sales forecast. This is what the commercial department does, where the current market situation and past sales are studied. This is the only way to get the most accurate forecast.

Sales organization in general business activities

One of the advantages of this concept is the ability to coordinate the work of the personnel services of the commercial department. Also, a definite plus is that the use of this concept implies the coordination of commercial operations with the rest of the components of the work (production, administrative work and finance). But the most significant contribution made by this concept is that marketing becomes closely connected with other types of commercial activities. Thus, the head of the department gets more freedom of action and a lot of new tools for managing the commercial department. The head of the department establishes links with the management of advertising, research work, planning and development of operations. By joint efforts, guided by the general policy of the company, they achieve their goals.

What does the structure of the commercial department of the enterprise look like?

When a new organization arises, the commercial department appears by itself, it develops spontaneously, its work is not coordinated. The commercial department in such companies does not have clearly defined boundaries of responsibility, and the levels of subordination are established using the organizational structure. However, this does not prevent the department from continuing its work.

Usually the blame for the unproductive work of the department is placed on the sellers. But the responsibility also lies with the entire commercial department. Each mistake of the subject affects the entire sales system as a whole.

Many different types of structures have been created, each of which is designed to perform certain tasks and achieve its goals. It is extremely important to match the commercial structure and distribution policy of the company, only in this way it will be possible to effectively implement strategic tasks for business development.

Among the many sales departments, the following principles for organizing the work of the commercial department are most often used.

Geographical. To use this type of organization, it is necessary to place a sales unit in each region in the form of an official representative or branch.

Grocery. It implies competition between teams, each of which is responsible for the sale of a certain product, in the same markets.

Client. This type of organization subdivides departments into categories that specialize in a particular client level. Typically, departments are divided into a department for working with corporate clients and a department for retail sales. But there are departments of commercial service with a large number of divisions.

Functional. The case when the sales process consists of the sequential implementation of the following steps:

• search and selection of the client base;
• discussion of working conditions and trial sale;
• subsequent cooperation and service;

This type of specialization considers the division of departments into sales stages. Often used is a division between commercial department specialists who work with the client base and direct sales, and back-specialists involved in subsequent sales and service provision.

Matrix. It is most advantageously used by organizations that sell complex goods, both intellectual and technical. Sales of such companies are formed in the form of projects. Typically, such enterprises recruit leading specialists in each of the areas used in the production, and they all work in turn with the client. A good example of companies using this structure would be consulting agencies, IT companies, etc.

Organization principles	Advantages	disadvantages
Geographic	Simple structure and proximity to customers. Low cost of sales and relatively low administrative costs.	The benefits of specialization are lost. Limited managerial control over the distribution of sales force. It is difficult to work with a wide interchangeable assortment. The performance of the region is highly dependent on the representative.
By products	It is easier to transfer specific knowledge across products. Easier to plan deliveries to customers. In the case of competing departments - high coverage of the territory.	Duplication of efforts: one client - several sellers. Large administrative costs. A high degree of coordination is required.
By clients	Allows you to better take into account the interests and needs of customers. A high degree of control over the distribution of sellers' efforts.	There is a danger of “missing out” on a potentially interesting client niche.
functional	Low dependence of customers on a particular seller. Specializing in sales allows salespeople to focus on what they do best. Strong sellers can be "unloaded" with the help of less expensive staff.	A high degree of work coordination is required (especially for departments with different functions). It is necessary to motivate several independent departments for a common result in working with a client.
Matrix (project)	Rapid concentration of heterogeneous resources for different periods. A high degree of control over the work of salespeople and the design team.	High sales and administration costs. Difficulties with motivation, cost accounting. Participants' conflicts of interest.

Key principles for the productive work of the organizational structure of the commercial department:

1. Full compliance of the structure with the goals and priorities of the enterprise.
2. Building structure around certain functions.
3. Fixing the rights, duties, and powers in the structure.
4. Set the degree of control depending on the volume of sales and the independence of sellers during transactions.
5. Develop structural flexibility. It must adapt to market conditions, the availability of certain products, price fluctuations.
6. The structure should be balanced and take into account the interests of other departments: supply department, financial department, marketing department.

A well-designed structure is one of the most necessary aspects of a company's development, but not all enterprises can boast of having it and a commercial department. Most consider it a formality, but the absence of these components leads to widespread confusion. If more experienced employees fully understand the "hierarchy" of the enterprise, then for beginners this can be a problem. Creating a certain structure will help them adapt faster. Systems without structure are beneficial to middle managers, in such situations they try to gain undeserved authority.

Each company remains unique, so it cannot be said that the processes in them are the same. The structure created for a large company can be very different from the structure created for a small office. In order to draw up the correct structure, it is necessary to draw up a diagram of possible departments of commercial activity.

Description of the key structural elements of the commercial department

Composition of the commercial department

In some commercial companies, the Board of Directors meets to solve important problems. This is the name of the meeting of leading specialists of the commercial department. Open discussions help them jointly achieve their goals, find the best options for solving production and commercial problems, and avoid fragmentation of departmental interests.

The following variant of building an organizational structure is also possible. The marketing director becomes the direct supervisor of the commercial director or indirectly manages him.

Another option for the development of the organizational structure is the introduction of the position of executive (commercial) director of departments. Such a scheme is useful for those enterprises that need to reduce the number of duties of the CEO and give him the opportunity to deal with more urgent and important tasks. For example, he may spend his time establishing business relationships with companies or suppliers. The executive director may also take over the security or commercial department.

Sales department

Not only the sales department is responsible for commercial success, but also other components of production. However, this department brings the main profit to the enterprise. The system of the sales department must be clearly debugged, and the employees must be motivated, only then the income of the enterprise will be as high as possible.

For convenience, the heads of each division are referred to as senior commercial managers. In simple words, each department has its own leader, who fully controls its work. Various variations of the names of these positions are possible, but the essence of this does not change.

The statement that the sales department is the heart of the company is confirmed by the numerous flows of finance and information that connect it and other departments.

Name	From whom / to whom (department, service)
INCOMING STREAMS
Sales policy - the concept of sales, assortment, prices, etc.	Commercial Director. Marketing
Methodological support for the organization and management of sales	Head of Sales Department. Commercial Director
Item: Current Sales Availability, Planned Stock, Scheduled Delivery	Merchandising (warehouse)
Delivery of goods to customers: exactly at the address, on time, without deterioration in consumer qualities	Merchandising (distribution)
Information about the availability and movement of goods	Merchandising (warehouse). Procurement. Logistics. DB
Cash	Accounting, financial department
Material support (workplace equipment - telephones, computers, etc.)	Office Manager
Information support, results of analytical calculations	DB, marketing analytics
	Marketing
Analytics based on sales results	Marketing
Results of claims work	Marketing
Results of marketing research: a counter sales plan for customers, segments and regions, new forms of working with customers, etc.	Marketing
Data on the economic efficiency of sales in the context of goods	Financial department. DB
Customer accounts receivable data	Accounting. DB
Frames that decide everything	Personnel Service
Resolving disputes with clients	Legal service. Security Service
OUTGOING STREAMS
Money to the bank / cash desk, concluded deals, contracts, orders	Accounting, financial department
Sales budget (sales plan)	Financial department. Marketing
Assortment plan-order for goods	Production. Procurement. Merchandising. Logistics. Marketing
Cost budget	Financial department
Information on customer feedback on the quality of goods and services of the company	Marketing
Information about the state of the target market, collected on the instructions of the marketing service	Marketing
Offers to the sales policy of the company	Commercial Director. Marketing
Databases of current and potential customers. Operational reporting of sales managers. Final reporting of the sales department on the results of work for the period	Commercial Director. Financial department. Marketing

Operational commercial groups

Operational groups are divided according to certain criteria and their number depends on market segmentation, but there are other factors that affect this. With a small assortment and volume of supplied goods, commercial groups are divided according to the region. Otherwise, commercial groups are divided into groups of goods supplied to the interested regions. It is more profitable for organizations that sell or receive goods from a wholesale company to collect groups in relation to these counterparties. The same scheme is used for sales organizations to other enterprises.

Such a group consists of 2-4 people, there is no definite leader in it, and all decisions are made collectively. Accordingly, the entire team is responsible for the miss of one participant. This way of organizing leads to an acceleration of the work process, the full dedication of each employee, an increase in the efficiency and quality of work in general, simplification of the training of new employees and creates a certain competition between groups. The group also performs some analysis of the commercial department.

Work in the commercial department is productive if these immutable rules are observed:

1. During the working day it is forbidden to miss phone calls.
2. Each employee must be "savvy" in the area where his group works and cannot afford to have gaps in knowledge.
3. If the group is not competent in the client's question, he is redirected to service to a group with the necessary knowledge.
4. Team members must choose their own lunch time, as well as mutually replace each other while one of the employees is on vacation. If the issue cannot be resolved amicably, it is referred to senior management for consideration.

The ideal placement of commercial groups looks like this: all groups are in the same room, separated by screens. Each employee has his own phone and personal monitor connected to the public network.

Coordination and Procurement Department

The organization of commercial activities is almost entirely dependent on the work of this department. He works closely both with other specialized departments and with commercial groups.

The tasks of the Coordination and Procurement Department are as follows:

• distribution and control of incoming goods;
• control over the fulfillment of tasks by departments;
• monitoring the promptness of deliveries and providing guarantees to customers;
• maintaining a reserve of demanded goods in warehouses;
• control of the unity of the enterprise policy;
• creation of proposals for changing the range of goods in relation to their demand;
• creation of commercial groups to work with suppliers.

Department of Transport and Customs Operations

The department is headed by a commercial director. The main tasks of the Department of Transport and Customs Services are as follows:

1. Search for the most profitable modes of transportation.
2. Control of customs documents, registration of transaction passports.
3. Arrangement of goods escort at the request of the customer.
4. Creation of new warehouses or zones for transshipment for justified reasons.
5. Provision of vehicles, including shipping.
6. Monitoring the timeliness of deliveries and the receipt by the customer of the necessary documents.
7. Providing cargo with insurance documents.

The Marketing Director manages multiple departments. Let's take a closer look at the functions and tasks of some of them.

Marketing and Pricing Department

This department is responsible for the continuous study of the buyer's market and the enterprise market. The information received gives them the opportunity to offer the marketing director many options for promoting a particular product, among which you can find:

1. Changes in the assortment of goods in relation to the forecast and the situation on the market.
2. Proposals to replace suppliers with more competitive ones (offering goods cheaper or better than the existing one).
3. Market improvement.
4. Entry of the company to more developed levels of the market.

This department keeps records of all materials purchased and sold by competitors, collects all existing information about the pricing policy in the market, competing sellers and current indices. At the same time, the department collects data on those firms with which they have ever been in contact.

The price group of the department advises the sales teams on the prices that currently exist in the market, checks the reports they have completed and sends them to the head of the sales department for review. Also, the price group issues new proposals for changing the range of goods.

Before large meetings, the department justifies the reason for discussing new pricing policy, market changes and other important issues that are within their competence.

Required for the following tasks:

1. Monitoring the effectiveness of advertising a particular product, as well as the company as a whole, compiling the characteristics of the commercial department.
2. Organization of promotions and calculation of the costs of their implementation, justification of the reasons for their decisions.
3. Implementation of the approved plan of events by concluding deals with advertising companies.
4. Distribution of trial or promotional versions of products.
5. Sending the company's products to participate in various exhibitions and fairs.

Smaller companies can afford to combine the above two departments.

Department of work with intermediaries

Engaged in the development of sales schemes. For high-quality work, the department needs the support of other components of the company: the marketing and pricing department, the customs (transport) department, the maintenance organization department, the department for coordinating purchases and sales. All commercial groups interested in promoting the goods being sold are also involved.

Having developed a proposal, the intermediary department submits it to the Board of Directors for consideration. And after its approval, the proposal turns into a target plan.

Now the department needs to find promising commercial intermediaries, prepare all documents for signing and start cooperation with them. After signing the contract, the department monitors compliance with the conditions specified in the document, as well as the work of the departments. Negotiations on the conclusion of the contract are conducted by the marketing director.

CEO speaking

Sergey Miroshnichenko, General Director of Srednevolzhskaya Gas Company LLC, Samara

We are among the natural monopolies, we are a service company, so we do not have sales and purchase departments in the standard sense. Deputies, heads of branches and structural departments are subordinate to the General Director of the company. Each department is a fairly independent structural unit that has financial isolation, a work plan, the procedure for carrying out work and payments. Each purchase is aimed at providing financial means for the construction and transformation of networks. The purchase of the main part of the necessary goods is carried out by the Production and Technological Completion Department (UPTK), which is part of the parent company, it reports to the deputy general director of the commercial department of the enterprise. Over the course of several years of work, the company has a list of trusted partners, the structure of work has been debugged, and therefore, I consider it inappropriate to form a procurement department and provide a place for the head of this department.

UPTK employees and employees responsible for conducting tenders (carrying out activities under the supervision of the First Deputy General Director) select a supplier. After that, the bidding department analyzes the correctness of the purchase procedure, the selection of a supplier, either by request for quotations, or by tender. The final selection takes place in the bidding department, a protocol is drawn up. As a rule, this process is carried out when signing serious and large contracts. A unique product is purchased, as a rule, from a specific supplier, since here attention is primarily paid to quality. The department delivers products to the main warehouse at the request of other departments.

How to organize competent management of the commercial department

The financial component of the activities of companies is not carried out by itself, it needs to be properly managed.

The management system of the commercial department is a complex of components, the relationship between them, as well as the manipulations that carry out the commercial activities of the enterprise.

To systematize the management of the commercial department, you must:

1. Prepare goals for the implementation of commercial activities.
2. Distribute the functions of production and management of commercial activities.
3. Distribute tasks among the employees of the commercial department.
4. To streamline the interaction of employees of the commercial department and the order of their functions.
5. Acquire a new technology for manufacturing a product or reconstruct it.
6. Optimize the system of incentives, supply and marketing.
7. To carry out the manufacture of products and the trade and technological process.

The management structure is based on several subsystems: methodology, process, structure and management technique.

The process of managing the commercial department of a company is a component of the management sphere, which includes the development of a communications structure, the creation and implementation of management decisions, and the creation of a management information support structure.

The management organization of the commercial department is based on the following elements:

1. Development.
2. Formation.
3. Establishment of properties of isolated parts, based on tasks.
4. Creating a coordination scheme that guarantees the ability to adapt to changing business circumstances.
5. Separation of duties for commercial activities.
6. Formation of a scheme for providing data that will help in decision making.

The goals of the commercial activity of the company are divided into certain tasks, united by the scope of activity:

• purchase of goods;
• storage system;
• distribution routes, etc.

These principles are considered the basis for creating the organizational structure of the commercial department and its management:

1. Determination of a clear and precise goal of the organization of the commercial department.
2. Formation of installation for the commercial department to achieve the overall goals of the organization.
3. Formation of mutual work among departments.
4. Formation of a clear apparatus and management system with a single subordination, the correct hierarchy in the enterprise. Accurate division of responsibilities among different management participants.
5. Building a diversified approach for leadership work.
6. Striving for the minimum number of links in the chain of command.
7. Formation of orientation of the management system.
8. Providing executive information.
9. Flexibility and adaptability to fluid market conditions.

Business management is inextricably linked with the management of the entire enterprise. Thus, when creating the structure of the commercial department and choosing the way to manage it and its activities, you need to remember the relationship of each element that makes up the management system.

Management practices are a means of influencing the management and processes associated with the business department. They consist of administrative, organizational, economic and legal. These methods of leadership imply a fruitful combination. Their interaction depends on any operating conditions of the trade organization and the market environment.

• Sales department: 4 steps to organize effective work of managers

Key positions of the commercial department for the effective functioning of the company

For the competent management of the commercial service department, the participation of people and the systematization of work are necessary. It is necessary to select specialists of the commercial department and provide them with high-quality training, to systematize and manage the activities of commercial departments, and to establish fruitful cooperation between departments involved in customer service. We have already found out, referring to the functional connection of the sales department, that most of the departments are involved in these processes. In this regard, the main task of the organization and management of sales is the availability of professional staff, on which everything depends.

Head of commercial department

At the very first stage of organizing a commercial department, it is necessary to find a responsible head of the commercial department, allocate a position to him and define powers, then orient him in order to work.

The job title is not a formality. Don't treat a job title without the necessary responsibility. Behind the position of an employee who works in the commercial department, the essence should be seen: the duties of the employee, his responsibility to the enterprise, opportunities and powers, as well as the requirements for him.

The commercial department, in most cases, is led by a commercial director. Departments associated with the circulation of money in the company must make manipulations, referring specifically to him. Sometimes, depending on the size of production, a similar workplace has a different name: sales director, sales and marketing director, or head of the sales department.

Primary tasks of the commercial department and its director. Firstly, he must stimulate and in every possible way monitor the process of selling goods, its increase. Second, improve distribution links and develop the regional network. The head of the enterprise must clearly articulate job responsibilities that can be understood and performed by the commercial director.

Another form of interaction is possible - the director himself analyzes the organization of the commercial department, finds new ways of their development and progress of the entire enterprise. At the end of the formation of ideas, an employee of the commercial department puts them forward to the CEO or presents them to the board of directors. Only after such events, the main goals are set and further prospects are formed.

The job description or regulation on the commercial department provides an example of behavior for such cases. It addresses the above issues related to the definition of the goals and objectives of the commercial director, the construction of the production hierarchy, the system of employee interaction, methods for evaluating work activities and the list of main tasks.

Business Specialists

Specialists of the commercial department participate in the organization and implementation of the processes of logistics and sales of products, the sale of services, conduct marketing research and advise on these issues.

Their responsibilities include:

1. Participation in the planning and organization of logistics, control over the fulfillment of contractual obligations, receipt and sale of funds for raw materials, materials, fuel, energy and equipment.
2. Determination of requirements for material resources and finished products and compliance of their quality with standards, technical specifications, contracts and other regulatory documents, preparation of claims for delivered low-quality inventory items and preparation of responses to customer claims.
3. Carrying out a comprehensive study and analysis of markets for goods and services in order to actively influence consumer demand in order to expand sales of products.
4. Preparation of proposals for planning the production of specific goods (services) and prices for them in accordance with changes in market conditions.
5. Participation in planning and organization of sales of products (transportation, storage, bringing to the consumer).
6. Participation in the planning and organization of the service.
7. Development and participation in promotional activities.
8. Advising on marketing, other aspects of organizing the work of commercial activities.
9. Fulfillment of related duties.
10. Management of other employees.

Examples of professions included in this basic group:

1. The manager of the commercial department is a specialist directly involved in trading operations: purchases and sales. The scope of duties of the manager of the commercial department depends on the specifics and size of a particular enterprise, on the niche it occupies in the market, etc.
2. Marketing specialist (market research and analysis).
3. Advertising Specialist.
4. Merchandiser.
5. Economist for contract and claims work.

CEO speaking

Ilya Mazin, General Director of ZAO Office Premier, Erich Krause group of companies, Moscow

The head of the commercial department is needed to organize the work of the commercial department. If it is necessary to link two components: obtaining favorable commercial conditions at the entrance, that is, delivery conditions (either components or finished products), and achieving favorable sales conditions. In the absence of one of these functions, there is no need for the head of the commercial department.

Very small and very large companies do not need to manage the commercial department. Small because, most often, it is difficult for them to pay for a large administrative apparatus. Usually in such situations, the functions of the head of the commercial department are performed by the owner, if there are several of them, then usually the management areas are divided between them: someone can deal with administrative and economic issues, someone controls financial turnover and profit (and in fact is a commercial director). In a large business, on the contrary, the duties of a commercial director are often distributed among directors of areas.

But for medium-sized businesses, this is a key figure. The head of the commercial department is a top manager who ensures the most important thing in the company - this is the creation of a profitable part.

How to analyze the performance of the commercial department and the sales department

It doesn't matter where your position in the hierarchy of the enterprise is, if your responsibility is to work in the sales department and strategically plan its activities, or, let's say in other words, market and marketing strategy, then you are responsible for generating a certain number of sales and economic growth of the company.

Often the expected sales turnover is not achieved due to the overpricing of the sale, or the high price of raw materials, insufficient funding for advertising or low motivation of employees. If at least one of the listed or similar problems is well known to you, then when organizing the work of the commercial department of the enterprise, you miscalculated in planning. This means that you did not conduct an in-depth study of the previous stages, did not find the real factors that affect the increase and decrease in sales.

If it was not possible to make your area of ​​responsibility for the commercial department accessible and understandable; if you have no way to timely determine the position of the commercial activities of the enterprise, then it is worth waiting for the real financial results. But this does not apply to companies that have a competent CEO.

A good CEO will usually be interested not only in how much you aim to sell next year and how many hot customers you have, he will also be interested in the facts on which your confidence is based. He will not be satisfied with the information that the company has doubled sales for several years, and now there is a need to hire more highly paid specialists in the commercial department in the field of sales, for which you need to increase income by 80%. He will also analyze the growth of the market in the industry, which can be equal to just 50%. The conclusion suggests itself, doesn't it? The answer is obvious: the company has stopped in its development, but exists because of previous successes.
Suppose you are a manufacturing company or, for example, a professional services firm. With any chosen method of effective promotion, among the employees of the organization there must be employees whose main duties will be interaction with customers. These methods include active sales, advertising, marketing programs, client recommendations, etc. How deep did you analyze the commercial department? Have you given an accurate description of the commercial department? Does your analysis system answer the questions: why is our turnover the way it is, how to act to sell more, and how much sales do we need? The proposed analysis system, which we will consider, can solve such problems of the commercial department.

What should be analyzed in the activities of your managers?

1. The result of the work:

• turnover;
• the established number of active clients and the percentage of clients recently introduced into the process;
• average number of customer purchases;
• further prospects in working with the client and our possibilities in working with him;
• the number of lost customers among those with whom interactions have already been conducted and those who were only a potential client;
• the number of lost customers in the past.

Entering this information into an Excel worksheet, calculating the necessary indicators, you can get data on the result of the work of each specific manager who works in the commercial department:

• turnover will notify you of all financial profits brought by the manager for the company;
• the number of active clients and the number of new active clients will tell you how purposeful the employee is in terms of attracting;
• the average number of sales per client will indicate the quality of the clients that the manager of the commercial department works with;
• the customer's ability to purchase your product will inform you how deeply the employee analyzed the customer, in addition, you will receive data for further monitoring of sales;
• the rest of the data will indicate the development of the manager's abilities in the field of working with clients.
  All individual indicators of managers, individually and in total, are compared with each other, plus there will be an average indicator for the entire department, this will help you objectively look at and evaluate the results of the annual financial turnover.

A start. It is worth noting that when evaluating the results, you will not find the reason why the performance of managers is so different from each other. And if you do not know the reasons, then you cannot properly manage them and correct errors and inaccuracies. In this connection, it is necessary to continue the analysis of the commercial department, delving into it.

2. Activity and effort expended.

If you want to know the full data of the employees of the commercial department for working with clients and the efforts expended by them to achieve success, then you need to first describe the totality of all actions, that is, describe the indicators of sales processes.

The indicators are different, it all depends on the characteristics of your business. Usually, the following indicators carry real information content: calls, meetings, offers. Naturally, they can pursue many different goals, which can be many - the exchange of information, the discussion of the presentation, financial calculations, the features of the payment system or its confirmation, etc. Well, if they serve as a stepping stone to a new stage of relations with the customer, the ladder of such development looks something like this: getting to know the client, then studying him in depth, based on the data obtained, you need to attract him, then develop these relationships and retain them to complete this transaction with a future perspective cooperation.

The most convenient tool for presenting sales processes and searching for a connection between activities and a specific sales stage is the use of the sales algorithm below.

Each period defines the process and stage of sales at which the customer is located. If you compile statistics on current customers, then it will be possible to find the average duration of the transaction process, which will provide initial information for building a sales forecast for "hot" customers. By applying this tactic to "lost" clients, you will discover the stage at which the client decides to refrain from dealing with your company, thanks to which you can find out how interesting your proposals look. The sales algorithm should look like this:

1. Request a meeting and determine its subject.
2. First meeting.
3. Establishing customer needs and your company's ability to meet them.
4. Sending minutes of discussions and questionnaires of customer expectations.
5. Schedule a new meeting to discuss the proposal.
6. First presentation.
7. Sending an "offer"

Of course, when creating this system, you must provide for all options. It is not a fact that the proposal for a meeting will be accepted, even if the client agrees to see him, he does not always sign the contract, so you need to be prepared for many scenarios. For example, if you were refused to sign a contract, and a specialist in the commercial department was able to find out the real reason for the refusal (he must be able to do this), the client was not satisfied with the cost. Further, you can send a thank you letter and notify him whenever the price of the item he is interested in changes. With a large base of such customers, you can arrange a sale to increase market share. It is also possible to consider the option of introducing accumulative cards, which, upon reaching the required number of purchases, will reduce the price to the desired level.

To analyze the commercial department, you must obtain the results of the description of the sales business processes:

• definition of business contacts with the client;
• definition of sales stages;
• Assigning a deal stage to identified business contacts.

Performance appraisal of your managers.

To achieve this, you must first educate your sales team on the rules for successful customer interactions. You must convey the advantages of dividing the sales process into stages and determine the goals for which you need to keep track of customers. If you can confidently state your thoughts and convince employees of the benefits of your proposals, then the information will be assimilated and adopted.

The final report of your managers should include the following items:

• inventory of current customers and determination of their stage of sales and source of appearance;
• the amount of annual profit, data for each client: the date of commencement of work and the last contact, their result;
• in case of refusal, it is necessary to indicate the reason, the reason and the stage at which the client decided to refuse.

Be prepared for the fact that, unfortunately, you may receive an incomplete report. Sometimes this is not part of the responsibilities of the manager of the commercial department. If you insist on fixing the history of work with clients, against all odds, you risk getting misleading information. We advise you to introduce this practice when working with new clients.

For large companies with a huge customer base, it seems logical to focus on key customers, usually about a quarter of the total number of customers.

After reporting on current clients, the manager needs to indicate the number of active manipulations towards each client, this can include calls, meetings, special offers, etc. By dividing customers into groups: “buying”, “new buying” and “never bought”, it will be easier for you to calculate the indicators that determine the success of your managers:

• calls, meetings, proposals of everything;
• calls, meetings, offers to new clients;
• calls, meetings, offers to old clients;
• calls, meetings, offers to new buying customers;
• calls, meetings, offers to old buying customers;
• calls, meetings, offers to non-buying customers.

By combining the obtained information about the manager’s activities, his activity and spent resources into a table, you will find out the answers to the following questions:

1. What is the amount of effort expended by the manager of the commercial department to work with clients?
2. Is each manager focused on large, medium or small clients?
3. Which client brings in the most profit?
4. How much effort (calls / meetings / offers) does an employee need to spend in order to receive an order?
5. Does the manager work with new or old clients?
6. What proportion of buying customers in the entire database?
7. Having passed what stage, the manager approaches the signing of the contract?
8. At what stage does a client usually refuse a manager?
9. What are the main reasons for rejection?
10. Does the manager have a deep or superficial attitude towards working with a client, does he reveal his full potential for interacting with your company?
11. What is the proportion of lost customers?

By comparing KPIs and financial results, you will be able to calculate the average number of calls, meetings or offers to sign one contract and its average price.

According to the data, the statistics will say something like this: a specialist calls about 80 clients every month, makes appointments with half of them, and receives 20 offers, as a result, 10 customers with a contract amount of about $ 5,000 begin to cooperate. When calculating backwards, you will be able to notice the required degree of professional effort by the manager to make a profit in the desired amount. By developing a percentage system of remuneration, you will be able to control the activity of employees, thanks to financial incentives and bonuses.

The resulting data will provide you with objective information about the capabilities of the sales manager, you will be able to identify areas for his growth and help develop the required abilities in order to increase his productivity. For example, if a manager holds a sufficient number of meetings per work month, but only a small part ends with the signing of a contract, and the department’s usual indicator clearly exceeds its success, then you need to establish the cause of the failures and help your employee to function successfully and increase income. If you notice that an employee spends quite a lot of effort in working with new partners, but they are ineffective, study the list of his clients. It often turns out that the manager worked in a non-target segment. If an employee is busy with an outdated customer base without attracting fresh flow, you should stimulate the interest of such an employee in a different approach, even if the performance of such a manager is above average. The system of introducing bonuses for the appearance of new partners can help you.

At the moment, commercial service departments prefer to look for opportunities to reduce organizational costs in favor of their own benefit, which depends on the fulfillment of customer needs. So, in modern market relations, the economic principle "calculation of the benefit of the consumer" is at the very center of attention of departments that control the finances of the organization.