By Danielle Smyth Updated August 07, 2022
Many people use the terms "sales tactics" and "sales strategies" interchangeably, but there is a significant distinction between the two. When it comes to the importance of sales tactics and strategies, what's the difference? Sales tactics are actions you take to increase your chances of making an individual sale, while sales strategies are the long-term plans you put in place to reach your ultimate goals of increasing revenue and market share.
Your business should have both sales tactics and sales strategies. While the two aren't the same, they are two sides of the same coin. They share the same goal – to increase sales and drive revenue – but how do sales tactics and sales strategies work together?
The Importance of Sales Tactics
Sales tactics are the actions you take to increase your chances of making a sale to an individual customer, such as offering discounts, providing free shipping or giving away free or reduced-priced samples. Sales tactics are often used to close a deal already in progress. Your company likely has an arsenal of sales tactics ready to use at the first indication of a sale. Your salespeople may know every trick in the book, but without solidly defined sales tactics, it's hard to close that deal. The project management experts at Asana provide a reminder that tactics should always be closely related to strategy.
Think of sales tactics as the practical action of the sale. These tactics are what you use after you secure a lead. Sales tactics psychology includes things like asking questions to understand the customer's needs, offering a discount or free shipping, sending a follow-up email after a meeting, demonstrating your product, or making a phone call to check in. You use these personal touches to increase the likelihood of closing a sale.
The Importance of Sales Strategies
On the other hand, sales strategies are long-term plans you put in place to increase revenue and overall market share. Sales strategies focus on developing relationships with customers and building loyalty. Sales strategies are more about the big picture and less about individual sales. Sales strategies take a global view of the company's sales goals: They're about making changes that will have a lasting impact on how you do business.
Sales strategies can intertwine with marketing strategies and tactics to outline your company's overall plan for finding and keeping customers happy. You can utilize these strategies in several ways, such as developing new products or services, expanding into new markets, or improving your levels of customer service. Sales strategies are long-term plans that take time to develop and implement. They require research, planning and ongoing evaluation to see if they work. Sales strategies increase revenue and market share in the long run.
High-Pressure Sales Tactics
One type of sales tactic you'll want to avoid is high-pressure tactics. High-pressure sales tactics are those that try to force a customer into buying something before they're ready. Some common high-pressure sales tactics to watch out for include being pushy about making a decision, refusing to accept no as an answer, making false promises about what the product can do, or pressuring customers to buy something they don't need or want. These tactics can often backfire and leave customers feeling angry or resentful.
Your salespeople must not use high-pressure tactics because the tactics may be illegal in your state. For example, using tactics such as bait-and-switch is illegal in California, according to the legal experts at FindLaw. The Federal Trade Commission has laws protecting consumers from unfair or deceptive business practices. Anyone who thinks they've been the victim of high-pressure tactics can file a complaint with the FTC.
FAQs
While strategy is the action plan that takes you where you want to go, the tactics are the individual steps and actions that will get you there. In a business context, this means the specific actions teams take to implement the initiatives outlined in the strategy.
What is the difference between sales tactics and strategies? ›
Sales tactics are actions you take to increase your chances of making an individual sale, while sales strategies are the long-term plans you put in place to reach your ultimate goals of increasing revenue and market share. Your business should have both sales tactics and sales strategies.
What is more important strategy or tactics? ›
Tactics without strategy are the noise before defeat. So, strategy and tactics are complementary. The fundamental differences between strategy and tactics are long-term and short-term, the overarching business plan and the small, tangible steps toward realizing it, but they are two sides of the same coin.
Is strategy better than tactics? ›
Strategy provides the foundation and direction. Without a clear strategy, tactical efforts may be disjointed or ineffective because they lack a coherent goal to align with. By setting the strategy first, an organization ensures that all tactical plans are effectively aligned towards achieving the set strategic goals.
Which comes first strategy or tactics? ›
Order of play: Strategy will always come first. 'Changeability': Strategies take time, research and careful planning to create because of their long-term vision. This means that they can be changed, but not lightly or easily. Tactics, on the other hand, can easily be adjusted to correct the course of action.
How to be more strategic than tactical? ›
As you shift your focus from tactical thinking to strategic leadership, keep in mind that effective strategizing requires you to do the following:
- Think outside the box. This sounds trite, but it's true. ...
- Question the status quo. ...
- Focus inward. ...
- Focus outward.
Offer upgrade incentives to existing customers
For example, incentives are a highly effective sales tactic for SaaS businesses with several pricing plans or tiers. To encourage your existing customers to upgrade their plan, you can offer them discounts or time-sensitive promotions.
How to differentiate between negotiation tactics and strategy? ›
Negotiation strategies refer to overall plans, while tactics are specific actions used within those plans. Strategies guide the negotiation process, while tactics are the detailed moves made during negotiations. Negotiation strategies are overall plans, while tactics are specific behavioral choices within those plans.
What is the difference between strategist and tactics? ›
A business and its employees must think strategically and then act tactically. Here are some other distinctions between strategy and tactics: Strategy: A plan to achieve a goal is strategy. Tactics: Actions taken to achieve that goal.
Why the difference matters between strategy and tactics? ›
If you were to compare strategy vs tactics in an organization, more often than not you'll find that an organization uses any number of tactics but lacks an overall strategy. You can think of the difference between the strategy and tactics as the strategy being the “what” and tactics being the “how”.
Strategic thinking is about creating plans and strategies that allow you to achieve goals over time. Tactical thinking is about reacting to events as they happen. The two types of thinking are very different, but both are important. Tactical thinking is great for short-term problems.
What is the quote about strategy vs tactics? ›
About 2,500 years ago, Chinese military strategist, Sun Tzu, wrote “The Art of War.” In it, he said: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Tactics and strategy should always complement each other, and are two sides of the same coin.
Which is better, tactical or strategic? ›
Strategy defines your organization's long-term goals. Through strategic planning, your enterprise can reach those goals. Conversely, tactics are more concrete and oriented toward a shorter time frame and smaller steps. This may include best practices, specific plans, resources, and more.
What is the difference between strategy and tactics answer? ›
Strategy is required to set the overarching direction and destination of the organization, and tactics are required to define the concrete actions you'll take to reach your destination.
What is a goal vs strategy vs tactics? ›
A goal is a broad primary outcome. A strategy is the approach you take to achieve a goal. An objective is a measurable step you take to achieve a strategy. A tactic is a tool you use in pursuing an objective associated with a strategy.
What is the difference between a strategy and a tactic quizlet? ›
What is the difference between strategy and tactics? Strategy is determined far in advance, while tactics refers to matching up resources and strengths in the short run with competitive challenges and opportunities.
What is the difference between strategy and tactics quotes? ›
“Tactics are the what. Strategy is the why. Tactics are the actions. Strategy is the planning.
