In a corporate structure, ‘sales’ is commonly a grouping consisting of specialists employed to sell the product or good that the business offers. These specialists are known as sales agents or salespersons.
On the other hand, a service is provided to a customer or business partner by a specialized group of people to support or guide them. The transaction is generally non-monetary and involves serving people using knowledge and skill.
- Sales involve selling a product or service to customers for a profit.
- Service involves providing customer assistance or support, often after selling a product or service.
- While sales focus on generating revenue, service builds long-term customer relationships and enhances their overall experience.
Sales vs. Service
Sales involve identifying potential customers, understanding their needs and preferences, and convincing them that a particular product or service can meet their needs better than competitors. Service is provided to customers after a sale to ensure satisfaction and build long-term relationships.
|Parameters of Comparison||Sales||Service|
|Meaning||Sales involve various activities carried out with the aim of selling a product or good by specialists in an organization.||Service is the support provided to a customer while inquiring about or buying a product or good.|
|Objective||The objective of a sale is to gain profit.||The objective of a service is to fulfill a customer’s needs and increase customer satisfaction.|
|Goal||Salespersons have specific goals regarding the number of sales that need to be generated in a specific period.||No such targets need to be achieved by people working in service.|
|Transaction||The transaction between the customer and the salesperson is monetary.||The transaction between a service agent and a customer is generally non-monetary.|
|Customer||Salespersons are commonly responsible for generating new leads by reaching out to new people.||Service revolves around serving customers or business partners already in contact with the organization.|
What is Sales?
In a corporate structure, ‘sales’ includes various activities that salespersons carry out to sell a product or good the business offers. Most organizations create a group of specialized people who work towards increasing sales and maximizing the company’s overall profit.
The people in sales are grouped according to the kind of product they have to sell, where the product has to be sold, and the target customers who are interested in or willing to buy the product.
Subsequently, various techniques and strategies are needed to be used by them to promote the product. A salesperson can be considered someone who completes the transaction while buying a product.
This transaction is generally initiated in response to a request, acquisition, or direct contact with a potential buyer. The ownership of the product is then passed over in exchange for the negotiated amount of money or credit. A salesperson’s job is to convince a customer to buy the product.
They are also responsible for reaching out to new customers and briefing them with product details to gain their interest. This is done to reach a certain number of sales targets.
What is Service?
In a corporate structure, service is the support offered to a customer throughout the process of a sale. Agents provide this service with specialized knowledge to use different techniques while dealing with people.
Services may be provided to business partners tied with the organization as well. There are a variety of services that a corporate provides. Some of these include accounting services, tax services, banking and finance services, customer service, company incorporation, etc.
It is common for organizations to group a certain number of specialized agents to carry out these tasks. The word ‘service’ is also used in economics.
Here, it refers to a transaction between parties without tangible goods or products. This is contrary to ‘sales’ in economics, which refers to a transaction of a tangible good, service, or asset in exchange for money or credit.
In today’s fast-paced society, technology enters every aspect of daily life. The effects of it are glaringly apparent when it comes to services. This means that agents must be able to provide mass services with a high level of quality to keep up.
Main Differences Between Sales and Service
- Sales involve various activities to sell a product or good by specialists in an organization. At the same time, service is a customer’s support while inquiring about or buying a product.
- Sales aim to gain profit for the organization, while service aims to fulfill a customer’s needs and ensure maximum customer satisfaction.
- Salespersons have targets regarding the number of sales they need to achieve, while services have no such targets.
- The transaction between the agent and buyer is monetary regarding sales. On the other hand, the transaction is generally non-monetary regarding services.
- Sales commonly deal with new customers and work towards generating leads, whereas a service works with already existing customers.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.