What is a sales associate?

A sales associate, also known as a retail sales associate, works in a retail store to assist customers and increase sales. They are often the first person a customer meets when entering the store and are responsible for providing a positive and helpful shopping experience.

The primary responsibilities of a sales associate typically include:

• Customer service: Greeting customers, understanding their needs, answering questions about products and providing a positive shopping experience.
• Sales: Recommending and demonstrating products based on customer needs, providing in-depth product knowledge and using sales techniques like upselling and cross-selling to help meet sales goals.
• Operations: Processing transactions at a point-of-sale (POS) system, managing returns and exchanges, restocking shelves, ordering items not in stock and maintaining the store’s cleanliness and organization.
• Product knowledge: Staying up-to-date on product features, benefits and promotions to assist customers effectively.

A sales associate is focused on customer satisfaction to boost sales and profitability in your retail setting.

What is a sales representative?

A sales representative, or sales rep, sells a company’s products or services to other businesses (B2B) or individual customers (B2C). They are typically responsible for the entire sales cycle, from generating leads and long-term sales to closing deals and maintaining customer relationships.

Unlike a retail sales associate who works in a store, a sales representative’s role is often more independent and strategic. Their duties can include:

• Prospecting and lead generation: Identifying and contacting prospective customers through cold calling, e-mail, social media and networking.
• Presentations and demonstrations: Educating customers about a product or service, often through presentations or demonstrations that highlight its benefits and how it can solve the customer’s problems.
• Negotiation: Discussing and negotiating prices, finalizing contracts and closing sales.
• Relationship management: Building and maintaining long-term relationships with clients to ensure satisfaction, and following up after the sale is complete to secure repeat business and generate referrals.
• Meeting sales quotas: Aiming to reach specific sales goals, which are usually tracked monthly or quarterly.

Sales representatives can work in various environments, including inside sales, such as selling remotely from an office, or outside sales, like meeting with clients in person.

Day-to-day duties of a sales associate vs a sales representative

The day-to-day duties and routines differ for each role. Sales associates typically arrive at the retail location shortly before their shift starts. For the opening shift, the start time might be earlier to allow for setup time. They often start the day by straightening up the store, ensuring cash register drawers are in place and getting everything else ready for customers.

Throughout the day, they circulate in the store, greeting customers and helping them as needed. A sales associate might work one-on-one with a customer for as long as it takes to help them make a purchase. Depending on the store structure, associates might also work as cashiers, entering the items customers buy and processing payments. During downtime, the sales associate might straighten up the shelves, restock shelves or handle similar tasks.

A sales representative might contact existing leads, respond to e-mails and return phone calls. Part of the day may include prospecting for new clients and researching their needs. Sales reps also keep up with industry news and product line changes to improve performance.

Similarities between a sales associate and a sales representative

Although they work in different environments, both roles share core revenue-generating responsibilities. These professionals require product knowledge, strong communication and interpersonal skills, empathy and the ability to upsell clients.

Some similarities include:

• Customer focus: Both roles centre on the customer. Their primary aim is to understand customer needs and support a purchase, whether it’s a quick one-time transaction or a long-term contract.
• Driving revenue: A sales associate and a sales representative are essential to a company’s revenue stream. They are responsible for making sales and contributing to the overall financial success of the business.
• Product knowledge: To be effective, both roles require a solid understanding of the products or services they are selling. This knowledge is crucial for answering customer questions, making recommendations and building trust.
• Communication skills: Strong interpersonal and communication skills are vital for both positions. They must be able to listen to customers, articulate the value of a product and handle potential objections.
• Goal-oriented: Sales associates and sales representatives are often measured against specific goals or quotas, from a daily sales target in a retail store to a quarterly revenue quota for a territory.

Differences between sales associate vs sales representative

While both roles focus on sales to help your organization profit, their roles differ significantly in scope, environment and responsibilities.

Here are the main differences between a sales associate vs sales representative:

• Work environment: A sales associate typically works in a physical retail setting, such as a store or showroom, interacting with walk-in customers. A sales representative, in contrast, often works from an office or travels to meet with clients.
• Sales focus: Sales associates focus on immediate, short-term, in-person transactions. Sales representatives are involved in the entire sales cycle, which can be much longer and more complex. Their work includes prospecting, follow-ups, negotiation and nurturing client relationships over time to secure long-term contracts.
• Customer relationship: A sales associate’s interaction with a customer is often a one-time event to complete a purchase. A sales representative, especially in business-to-business (B2B) sales, builds and maintains long-term relationships to ensure client satisfaction, provide ongoing support and secure repeat business.
• Compensation: A sales associate is typically paid hourly, often with a small commission. A sales representative’s compensation is heavily based on a commission structure, which may or may not include a base salary.
• Required skills and experience: Both roles demand strong workplace communication skills, product knowledge and the ability to close sales. Sales associates often do not require specific experience or education. They typically receive on-the-job training to learn inventory management, visual merchandising and POS operation.

On the other hand, sales representatives often need a proven track record and skills in negotiation, prospecting and using customer relationship management (CRM) software. Employers might specify a minimum number of years of sales experience or seek candidates with a degree in a business-related major.

What are the average salaries for sales associates and sales representatives?

According to Indeed Salaries, the average salary for a sales associate is $18.28 per hour. Sales representatives average $65,444 per year with the potential to earn commission.

The pay structure differs between organizations, which could affect how much you pay for each sales position type. Not all sales associates earn commissions on the products they sell. They usually earn an hourly wage and may or may not receive commissions on top of that.

Sales representatives are more likely to earn commission as part of their salary. This can range from a straight commission role, where they have no base salary and depend solely on sales commissions, to a position with a base salary plus commission.

Employers can also use either a capped or an uncapped commission structure. An uncapped structure means the sales rep earns a percentage of their sales as commission, while a capped sales structure means they only earn commission on sales up to the cap or upper limit. Sales beyond that do not earn commissions.

Should you hire a sales associate or a sales representative?

It’s important to evaluate your business needs, identify goals and hire accordingly. The following tips can help you decide which role is right for you.

• Target audience: If your target audience is the walk-in customers for your retail location, you may need a sales associate to handle those interactions. Consider hiring a sales representative if your target audience includes other businesses or if you sell a high-end product to consumers.
• Industry: Retail positions typically fall under the sales associate category. Office-based or factory-based positions lean toward sales representative roles. You may have both locations and positions. For example, you might have a manufacturing facility that sells directly to clients and has an outlet store on-site. Your team could include sales reps who sell to clients and sales associates who work in the outlet store.
• Goals of the position: What do you want the employee to achieve? Sales associates often handle quick, one-time sales, while larger purchases with a longer sales cycle are typically better-suited for sales reps.

When to hire a sales associate

You might hire a sales associate if you:

• own a physical retail location where consumers come to shop
• want to strengthen your company’s reputation and customer experience
• focus more on several one-time sales rather than longer-term client relationships

When to hire a sales representative

Consider hiring a sales representative if you:

• sell to other businesses or organizations
• offer a product or service with a long sales cycle, such as custom or high-end items
• intend to build long-term relationships with clients to secure long-term business
• need to proactively generate new leads and manage a pipeline to meet sales quotas

The decision between a sales associate and a sales representative depends on your business model and the nature of your sales cycle. A sales associate is perfect for a customer-facing, retail environment where sales are frequent and transactional. A sales representative is the right choice for a strategic role focused on building relationships and closing more complex deals over time. By clearly defining your business’s needs, you can hire the right person to drive your growth and achieve your goals.