Sales management isn’t a one-size-fits-all approach, especially when you consider the varied experience levels of your sales team. For seasoned, high-performing salespeople, a more flexible, Outcome-Based Sales Management (OBSM) model might be the perfect fit. On the other hand, for less experienced or developing salespeople, a structured and consistent Activity-Based Sales Management (ABSM) approach can guide them toward success.
In this blog, we’ll explore why different types of salespeople thrive under different management approaches and how to balance both models to get the best from your team.
The Seasoned Pros: Why Experienced Salespeople Thrive in an Outcome-Based Model
Highly experienced salespeople have honed their skills over time. They know what works for them, and they often perform best when they’re allowed to leverage their personal strategies without being micromanaged. For these pros, Outcome-Based Sales Management is often the better approach. Here’s why:
1. Focus on Results, Not Process
Experienced salespeople don’t need to be told how to do their jobs—they already know. They thrive when given clear targets and the freedom to achieve them in their own way. OBSM shifts the focus from how many calls or meetings they had to how many deals they closed or how much revenue they generated. It rewards autonomy and results.
- Example: A seasoned rep might close a deal through just a few high-quality conversations with a client, whereas a less experienced rep might need more frequent check-ins and follow-ups. In OBSM, what matters is the closed deal, not the path taken to get there.
2. Flexibility Breeds Creativity
Sales is about building relationships, understanding client needs, and solving problems. Experienced salespeople often have unique ways of doing this. With OBSM, they’re free to be creative—whether that’s nurturing long-term clients, building relationships through personalized emails, or using social media to engage prospects. They know which activities will lead to the best outcomes for their style and market.
- Benefit: By allowing experienced salespeople the flexibility to chart their own course, you unlock creativity that can lead to bigger, more innovative deals.
3. Efficiency is Key
Time is a valuable resource for seasoned reps. With the outcome-focused model, they can cut out low-impact activities and focus on what drives the most revenue. Rather than being required to hit certain activity quotas (like a set number of calls), experienced reps can use their time more efficiently to close deals that matter.
4. Motivation Through Results
Top-performing salespeople tend to be self-motivated and driven by results. An outcome-based model directly rewards this mentality, creating a competitive atmosphere that keeps them engaged. Hitting or exceeding targets is the ultimate motivator for seasoned reps, making OBSM a natural fit.
The Developing Salespeople: Why Activity-Based Sales Management Helps Them Grow
For salespeople who are still developing their skills, Activity-Based Sales Management provides a structured framework that helps them build confidence and master the sales process. Here’s why ABSM is ideal for reps who are still honing their craft:
1. Structure Provides Guidance
Developing salespeople need direction. They are still learning the nuances of closing deals, managing pipelines, and maintaining relationships. ABSM gives them a clear roadmap, outlining exactly what activities they need to do each day to be successful—whether that’s making a certain number of calls, sending follow-up emails, or setting up meetings. This structure helps them stay focused and productive.
- Example: A new salesperson might not know how many touchpoints are needed to convert a lead into a client. By tracking activities, managers can ensure they are hitting those benchmarks, giving them the repetition they need to refine their skills.
2. Skill Development Through Consistency
Sales is a numbers game, especially when you’re new. Developing reps benefit from consistently performing the right activities, as it allows them to improve through repetition. By consistently making calls or setting up meetings, they can identify what works and what doesn’t, fine-tuning their approach over time.
- Benefit: As they build experience, they’ll gain a better sense of how much activity is required to achieve results, preparing them to eventually transition into a more outcome-based model.
3. Accountability Keeps Them On Track
Less experienced salespeople may struggle with time management, prioritization, and focus. In an ABSM framework, they are held accountable for completing specific tasks each day or week. This accountability helps them stay on track and builds good habits that will serve them later in their career.
- Example: A new sales rep may tend to procrastinate on difficult tasks, such as cold calling, in favor of easier activities. ABSM allows managers to monitor these activities and provide guidance where necessary, ensuring they’re spending their time on high-impact tasks.
4. Building Confidence With Small Wins
Early in a sales career, confidence can be fragile. ABSM allows developing salespeople to achieve small, measurable victories that build confidence over time. Closing a major deal can seem overwhelming at first, but making a set number of calls or booking a few meetings is a more attainable goal. As they hit these activity benchmarks, they start to build momentum, eventually leading to bigger successes.
Finding the Balance: Hybrid Sales Management
For many teams, a hybrid approach that blends elements of both ABSM and OBSM can deliver the best results. Even experienced reps might benefit from tracking a few key activities to ensure they’re staying focused on the right tasks, while developing reps might be ready for a little more flexibility as they gain confidence.
Example of a Hybrid Model:
- Experienced Salespeople: Focus primarily on outcomes like deals closed and revenue generated, but keep a watchful eye on critical activities, such as key account follow-ups or cross-selling opportunities.
- Developing Salespeople: Emphasize activities like cold calling, prospecting, and setting up meetings while gradually increasing responsibility for closing deals and managing their own pipeline.
Conclusion: Match the Management Style to the Salesperson
Both Activity-Based and Outcome-Based Sales Management have their strengths, but their effectiveness largely depends on the experience level of your sales team:
- Outcome-Based Sales Management is ideal for seasoned, high-performing salespeople who have the experience, skills, and self-motivation to achieve results on their own terms. It provides the flexibility and autonomy they need to excel.
- Activity-Based Sales Management is better suited for salespeople who are still developing. It offers the structure, guidance, and accountability they need to build confidence, develop skills, and create consistent sales habits.
Ultimately, the best sales management approach is one that matches the experience and needs of your team. By understanding whether your salespeople thrive on freedom and results or need structure and support, you can tailor your management style to help them—and your business—reach their full potential