Establishing sales goals for your sales team is a crucial part of any business leader. Setting up goals ensures your team is driven, on-task, and produces work that impacts your organization’s bottom line. It also guarantees your business is continuously endeavoring to grow, enhance, and increase revenue. Setting up these goals allows your sales team to focus on different aspects of the sales process instead of merely focusing on reaching the targeted numbers.
As a business leader, driving more sales and striving for better business results are critical to you. However, without defining a clear plan detailing how to achieve this set of goals, it’s highly unlikely your sales team will make the numbers you want. The overarching long-term goals of your organization also need to be taken into account. Attempting to achieve those numbers will cause the sales rep to waste their time chasing after unprofitable deals. That can severely impact your company’s image because reps are overselling, and your product or service fails at delivering those promises.
Furthermore, you want to ensure the numbers you settle on are obtainable and motivating to the sales team. If sales reps are feeling like their targets are unobtainable and unachievable, they will spend far more time looking for work somewhere else instead of concentrating on reaching their goals.
For this guide, we are going to tell you everything you need to know about setting goals for your sales team.
As previously mentioned, sales goals are vital to the success of your organization. Business leaders need to establish sales goals that will provide a more transparent path to achieve the target goals they want to achieve. These sales goals ensure everyone on the team is motivated and focused on achieving those specific targets. It also grants sales reps a way to see the direct impact they have on the company, fostering a sense of drive and motivation into the team.
To start this off, you need to take a close look at your business plan and consider if the annual goal you’ve set up is realistic. The best way to figure this out is by looking over the research you have already done on everything from pricing, the industry you are a part of, and how long your organization has been around. Business leaders need to assess the clients you’ve worked with, the number of prospects in your pipeline, and how many new leads are being generated each day.
First of all, you need to begin with what you already know. Even if your business has only been around for a single year, you should have enough data and insight to come up with enough ideas to progress during the coming year. Pay attention to the number of new customers who purchased your product or service in the past year. How much money was brought in on average? How fast is your customer base expanding? What are your best and worst-case scenarios?
Looking over the data you’ve gathered in the past year will provide you with a baseline idea of where you should go in the coming future.
Take the time to look over your current resources and consider what you can do with them. If your sales goals cannot be reached by the sales team you have right now, you may need to expand your team. Scaling your team because your organization is increasing fast is a valid issue to have on your hand, but it does eat up time and money.
Before seeing your sales team their quotes, you need to ensure it’s something that they are capable of achieving or at least have an answer on what they are going to do to reach those goals together. An excellent sales team forms from a trust that starts with the leader. Unless everyone on the team has a considerable amount of experience with selling your product or service, it can be easy to underestimate the extent of the sales process.
When it comes to sales, no one can control the results, but you can control the actions behind the process. Establishing result-oriented sales goals can severely impact your team and the bottom line. Instead of telling them to close 40 deals by the end of the year to reach a quota, tell them they need to achieve a goal of 10 calls for the week.
Feeling like you have no control over your actions can lead to frustration and stress, so bolster your team by taking charge of their inputs. Establishing believable sales objectives that your sales team has control over will increase confidence, morale, and motivation. It also ensures that your team remains on track through the entire year, permitting you to keep watch over their progress more efficiently.
However, you should remember that no two sales representatives are the same. Everyone has their own level of strengths, skills, and experiences when it comes to selling. So make sure to keep that in mind when you are working with your sales team to establish realistic goals to achieve the quota.
Sales can become an uphill battle at times, and as a business leader, you want to ensure your team is equipped with the best tools and skills available to them. That means providing them with training and resources around your organization's particular product and the capability to see if they are doing their tasks.
To help them during their sales process, take the time to speak to them about their strengths, weaknesses, and the areas they feel like they need to improve. It could be something as simple as changing the demonstration of the product or developing their confidence with starting up conversations. Schedule some time to coach your team and establish targets to assist rhyme with achieving their personal and professional goals.
Letting your team know what you value them enough to invest time into them will motivate them even further. Encouraging your sales team to improve their skills and grow as professionals will result in better performances and more targets being achieved.
One crucial step you should take is to sit down with your sales team and determine which goals you need to tackle together. Involving your sales rep in the process of setting goals opens a doorway to new insight and opportunities. It also grants your sales team to develop a more collaborative approach to work, while individuals are allowed to contribute and feel more invested in the organization.
Here’s what you can do to have a productive brainstorming session:
With your team feeling a part of the process, they will have a deeper sense of ownership and drive to reach these goals.
It’s important to make sure your goals are SMART. That means establishing a framework that enables your team to effectively set your goals. Here’s what the acronym stands for:
The SMART framework is valid because it makes sure you smooth out the details of your particular goals and ensures that they are relevant and realistic to achieve within a defined time frame. It also sets your goals in a transparent, crisp manner that you can measure and determine your success.
As your sales team is working hard towards achieving the various targets you’ve established, make sure to monitor how the sales goal progresses. For instance, if you set up daily goals for your team, consider checking in with your sales reps at the end of the workday to make sure they have reached those expectations. If your goals your sales reps are working towards are being achieved at a longer time frame, watch the progression through that time frame to ensure they are remaining on track.
Observing these goal progressions will offer you the opportunity to intervene when required. For instance, if you notice that a group of sales reps are not able to achieve a specific goal, you can intervene and make adjustments, such as providing the sales reps with more training or merely adjusting the goals themselves.
You must take the time to evaluate the success behind your specific sales goals. You can do it for either individual sales reps who achieved their targets or for the sales team as a whole. Assessing the success of your goals means you need to understand how the goals worked for your sales team and whether or not they were realistically achievable. From this point, you can choose whether or not you need to make any adjustments to your overall goal as you move forward.
Once that’s done, you need to share your findings, wins, and areas of improvement with your sales team. Take the time to set up a meeting to discuss these details to ensure everyone is on equal footing. To help you with the evaluation process, consider asking yourself these questions and write down the answers to them when evaluating your sales goals:
Review the answers to these questions and consider your next plan of action.
Most people enjoy having a reason for busting their backs and achieve the goals their business has established for them. While plenty of companies have set up perks or culture to encourage their teams to work harder, that may not be enough for most people. However, sales teams require an extra boost to reach those goals. Including some bonus scale with the number of customers they sign up for or milestones they achieve is an excellent way to keep on raising those numbers. Doing so establishes another set of lines that will position your organization for long-term growth.
Performance-driven incentives are essential for acquiring some of the best results from your sales team. Combine competitions and compensation, so everyone is aware that the prize is for those who make it to the top. That will ensure you have a sales team that not only respects each other for the hard work pull off but also makes sure they enjoy working together and encourages them to continue outperforming each other.
Moreover, consider different ways of acknowledging smaller activity-based goals and milestones, such as retention or upsells. That will inspire your team to sign off on the proper customers and have them concentrate on the customer lifecycle. However, celebrating quick closes that don’t lead to a long-term customer base is not the best course of action for your sales team and organization.
While establishing realistic targets is necessary to ensure team morale is at its best, setting up points to the use of stretch goals is a crucial tactic to achieve success. Business leaders need to set up a stretch goal for themselves and their sales team. While there is nothing wrong with motivating your team to exceed expectations and striving for more, you need to make sure that these efforts are incentivized. Otherwise, your team will start to wonder why they should even continue working harder when the results are the same for them at the end.
Establishing sales goals for your team is the foundation of your organization's success. Ensuring that your organization and team goals are aligned leads your sales team to become more motivated, focused, and driven. There are a variety of ways you can set up your sales goals. The important thing is that you establish them to ensure your sales team is periodically improving and bolstering your organization's bottom line. Plus, setting up your sales goals ensures that your team establishes a sturdy relationship with each other and the prospects.
Take the time to determine which type of sales goal is best suited for your organization and modify it when so your sales team can begin working towards reaching those targets. Check out to Intro.so further bolster your sales team.