Sales people need targets that stretch them but are not unachievable. To set achievable sales targetsa few things are important:. Poorly aligned sales territories can lead to low employee morale, lost clients and wasted resources. Here are some tips for setting up optimal sales territories.
Before you start carving up the map and sending your sales team out on the road, think about what you want to achieve. This will enable you to determine your revenue target. A small business is unlikely to have a large sales team. Start strategically by meeting revenue goals in small areas and then gradually growing the territories.
The key is to create balanced territories that match your investment in sales people. Preliminary planning will help you set up your sales territories.
What kind of clients are you going after, where are they located, and what resources do you need to reach them? Many companies use some form of marketing database software to figure out the best way to establish their sales territories.
This will show you what each hypothetical sales area would look like in terms of size and profitability. Start by ranking customers or clients into different categories based on the percentage of revenue they generate versus the time spent servicing them.
Those at the top will be the most reliable, followed by those who are promising but work-intensive, while the rest may require a lot of effort for little return.
Review your territories regularly to make sure they are functioning properly. The purpose of a sales territory metric is to create balanced sales territories. Messing with territories too often can also harm your relationship with customers in those territories. If a sales rep is not performing well, think about changing the rep rather than the territory.
Profit from those Negotiation Skills. Click Here. Ivor Jones is the chairman of ThinkSales Corporation. In he launched KreditInform, building it into South Africa's largest business-to-business credit management solutions company. It was sold to Experian in Monday, 6 April Dec 27, Related Topics. Selling Your Business?I recently started going to a personal trainer. At the beginning of our very first session, she asked, "So, what are you trying to accomplish? Over the years I've seen many salespeople and sales managers and companies get goal planning, action planning, and commitment right, and I've seen many fall short.
Without a clear goal they don't know where they're headed, so any path will get them there. Click here to download our complimentary Goal Setting Worksheet. In my experience, only two things set apart those who live by goals and those who don't. Salespeople who live by goals:. First, people who have goals know where they want to go. You might be thinking, "I wish it were that simple…I have no idea what I want to do when I grow up, and never have.
If you're searching for your destination, contrary to what you might read in others' writings about goals, you don't have to sort out your entire life purpose in order to achieve in sales. All you need to do is set a target for yourself—that can be as simple as an annual sales target—and to have a good answer for the question, "Does my entire being scream with a desire to achieve this goal?
Will I be in agony and turmoil until I do? If the answer is yes, then you're in great shape to get started. Perhaps you don't need all the angst and agony, but salespeople who are not dissatisfied with where they are don't often make it to the next level.
How To Set Sales Targets
Here are several goal setting examples. As you're crafting your goals, you should also take care to take your big picture goals e. Sometimes when we're working with salespeople to craft their goals and actions they get hung up on having "the right template" or detailed tracking mechanism, and since they don't have it, they don't even get started. Don't fret too much about the tracking sheet, but do concentrate on taking a step toward your goal every day.
As I write this post, I still can't fit into those suits, but Dwight Howard has nothing on me under the boards. Topics: Sales Process. Contact Us.Good start, but not good enough. Sure, every seller has a quota for this year, but so what? To do that, go beyond your one-year quota-focused goal. In fact, setting a goal that feels achievable makes is too easy. And limiting. This makes all the difference. The best way to do this is to break down the annual goals in the following sequence.
Do this and you literally break down your annual goals to what you should do today. You're confident 60 percent of your sales will come from renewals.
How are you going to accomplish that? Improve your win rate? Increase your average size sale? Double your pipeline? How many leads do you expect to get from marketing? How many do you need to generate yourself? Break down the numbers you need to achieve, and you can easily break them down to weekly and daily actions you need to take.
If you want different results, you have to do things differently, and do different things. Most of us know what habits keep us from achieving all we could. Hopefully we are ready to listen. Achieving goals means spending time on the right things, not the wrong things. Not enough to be careful with time. Not enough to prioritize our time.
11+ Sales Strategy Plan Examples – PDF, Word, Pages
We must obsess. When you obsess over TIME, you become ruthless about how you spend it.The Sales Target KPI measures current sales revenue and compares that to a target or past performance.
The sales target can be set as either a monetary value, number of units sold, or number of accounts. Monitoring sales performance against targets is a core tenet of any sales management strategy and is instrumental in creating a data-driven culture. Designing an effective sales target visual can have a huge impact. For example, a bullet chart captures current performance, past performance, and target in a single visual. Once trained on using this visual, your team will be able to instantly tell how sales are performing.
But when most salespeople miss, the problem is their goals. This highlights the importance of setting accurate yet challenging sales targets. Setting sales targets and getting them right can have a massive impact on your team, and motivate reps to dig deep to close more deals. Beyond that, sales targets should influence the structure of incentives for the team such as our commission and compensation model.
For more information on setting sales goals, check out this in-depth piece from Close. Achieving sales targets requires active monitoring of your performance throughout the day, week, and month. Sales targets ought to be dynamic and focused on short term performance. The more individual reps can see and understand how his or her work contributes to the target, the more motivated they will be to achieve those targets. One of the best ways to monitor sales performance against targets is to use a Sales Leaderboard and displaying it on a television.
Consider also setting up a Salesforce dashbord. Revenue : Income received through sales activities. Key indicators for sales targets Surpassing a sales target or the previous period's value. Revenue: Income received through sales activities. How to monitor sales performance against targets Achieving sales targets requires active monitoring of your performance throughout the day, week, and month. How to build the Sales Leaderboard Watch this short tutorial to learn how to build your own leaderboard for your team!Maybe your team has veered slightly off track since the target was set?
By assessing your current situation and creating an updated action plan, your team will have a roadmap to follow and a renewed motivation for how to achieve your sales target. Analyzing trends in your results up to this point in the year allows you to pinpoint challenge areas and determine the next steps for improvement.
It also reveals what is working well. Ideally, your team is regularly conducting post-sale analyses and documenting the findings.Goal Setting for Sales People - 3 Tips to become a top seller!
This sales action plan process is often overlooked as salespeople are eager to move on to the next business opportunity, but the results are extremely effective for creating a sales strategy moving forward. Make it a point to learn from your losses and repeat the things that have been successful in the past. That allows you to look back and see where your salespeople are losing opportunities.
Is it in the early stages or in the late stages? Knowing the answer to that will show you where to focus on skills training and coaching. Based on the information you gathered in Step 1, determine where skill gaps exist. For example, if conversion rates are low in the early stages, your team likely needs support with a pre-call investigation, qualifying prospects, questioning, or establishing trust early on. And if conversion rates are low in the later stages of the sales funnel, you may need to focus on skills such as building value, managing objectionsgaining commitment, and negotiating price.
One of the most effective methods is simply to ask them! Soliciting feedback will also make your reps more receptive to any sales action plan training or coaching you move forward with. Focus on the development areas that will lead to the highest return on your investment of time and resources and get you closer to achieving your sales target.
It may be that your team is struggling with a lack of qualified leads, and your first step needs to be aligning better with Marketing or updating your marketing strategy. Whatever strategy your unique situation calls for, you should work with each salesperson individually to create a detailed business development plan. Working backward from the goal, decide and record the activities and objectives that need to be accomplished on a daily, weekly, and monthly basis in order to succeed.
Establish a regular coaching cadence with your sales reps and make the meetings about development, not inspection. You can find more information about how to hold effective one-to-one sales meetings in this blog post. And if an aggressive sales target is causing them stress, make it seem more manageable by breaking the goal into smaller, easier to digest chunks.I have a question for you today: Are you on track to reach your sales targets?
If you are currently on track to reach your sales targets, keep on moving forward. Examine what you have been doing and look for the most effective elements of your marketing, as well as any elements that have underperformed.
Seek to improve your weaker areas and refine your stronger areas. Nothing happens in business by chance, so be sure to research where your successes have come from, so you can build on them in the 2nd half of the year. If you are currently off track, this is a fantastic time to review your marketing strategy and get yourself on track. Make a list of every marketing activity you are using as part of your overall marketing strategy and examine how well or how poorly they have been performing for you.
If you are currently using certain types of marketing simply because you see others using it or because it feels comfortableSTOP! You need to identify the correct marketing mix for you and your business, based on your sales targets, your resources and what you want to achieve.
Here are marketing and business development ideas to help you. This makes it hard to focus and to he honest, a little daunting too. The key, is for you to know how many sales you should be making each month or each week, in order to meet your annual turnover and profit goals. The great news is that no matter how things are right now, you can improve your sales and not only reach your annual targets, but blow the lid off them! Whatever you do, make sure that if you are off target and not enjoying the success your hard work deserves, that you make the changes required.
For better results, you need to be making better marketing decisions. Tip: If you found this useful, you can get my latest ideas delivered direct to your inbox, for free, right here. Grow your business with my Marketing Mentor Program! I can help you build a more successful business, increase your sales and boost your profits.
If you continue to use this site we will assume that you are happy with it.Top sales performers are those who achieve or exceed their targeted sales goals. With everything a value-added reseller has going on between juggling their clients and looking for new prospects, it can be difficult to hit sales targets every single month. Why is it that resellers fall short of their goals some months?
On closer evaluation, you will find that this lack of goal-hitting is usually due to weak goal setting in the first place. With the right goals, finding the best leads and following through on sales is nearly impossible. Here are some effective tips that VARs can follow to set the right goals and achieve their sales targets:.
Every sales person sets goals, but there is a difference between goals and the right goals. If they do not meet every one of those characteristics, then a goal-setting exercise is imperative and the first step towards hitting sales targets. A goal needs to have a clear direction and be able to be measured for effectiveness. Goals also need to be realistically attainable and have a timeline.
You can waste a lot of time prospecting and lose out on prime sales productivity. That is why it is important to figure out your buyer profiles and know who to target and how your POS products can help them.
Beyond that, having a list of all sources such as social media, customer referrals, websites, or emails, so you know where your prospects are coming from. Setting up meetings with prospects that were never going to purchase or even potentially purchase in the first place can be exhausting and a waste of time. You can cut back on useless meetings with uninterested prospects by researching their needs.
This will give you the kind of insight you need to know whether or not there is a possibility to convert them into a serious prospect. Successful sales approaches are all about building strong relationships. Keep in touch with them regularly through thank you calls, feedback emails, or even just sending them updates. This will ensure that your partnership with them stays at the forefront of their mind.
More than likely, they will stay a repeat customer or provide referrals. Do not hesitate to ask your customers for referrals. If you have maintained a strong relationship with your merchants, there is no issue at all in asking for referrals.
This can be done through email or in-person visits. Having a business card on hand to give to your clients right after you close the deal with them will help keep your contact info on hand for them if they need it. Small business owners tend to have other small business owners as friends. Goal-setting should be a continuous exercise, one that requires tweaks and revisions depending on the week. Sales goal review sessions give you a progress report — it will show you where you stand and what actions you need to take to move closer to your sales goals.