Study: Sales Managers' Supportive Role Can Boost Sales

New research suggests that sales managers can significantly boost company revenue by playing an active, yet supportive, role within their sales teams. An analysis of over 5.5 million customer interactions, alongside six related experiments, found that sales teams with a manager present outperformed those without by 5% to 13%.

The increase was most pronounced when managers supported salespeople dealing with new customers, rather than taking the lead. This "backseat" approach reportedly enhanced the status of the salesperson and the team in the eyes of the customer, increasing their willingness to buy and ultimately boosting sales. For the Fortune 500 company studied, this translated to an estimated $13 million in additional annual revenue.

Prior research indicates that between 12% and 20% of sales managers participate in closing sales. The behavior is noted as particularly common in sectors like apparel and home improvement. These findings offer a framework for how sales managers can more effectively allocate their time between managerial duties and direct sales involvement.

Future research aims to determine when manager involvement becomes counterproductive and its long-term effects on sales and staff retention. Initial findings suggest that excessive manager intervention might harm store sales, though new salespeople receiving more manager support are less likely to quit.