The goal is to target the sales force. Well-defined goals are the first secret of how to practically and objectively achieve sales goals.
It is precisely the goal that will show where the salesperson needs to go and what result the company expects from him. This type of sales performance indicator needs to be very well stipulated. Your creation needs to be judicious and careful.
After all, setting a goal is a big challenge when it comes to salesforce management. First, because each seller has a profile and a production capacity. Second, because a goal directly affects a salesperson’s salary.
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Every salesperson has a strong desire to hit a goal, to be rewarded and recognized for their performance.
On the other hand, a sales goal is precisely what will motivate the salesperson to increase their productivity or feel unmotivated because they have an impossible goal to be achieved. This is the importance of sales goals: evaluating performance and whether or not to reward the salesperson.
Thinking about the influence and importance of goals in commercial results and in the motivation of the sales force, we created a small guide on how to positively connect your sales force and how to achieve sales goals that create a challenge for the entire sales force.
But before we start, answer honestly: do you know the meaning of goal?
Meeting goals, even New Year’s, is sometimes not easy. But if you don’t even know the meaning of goal, it’s going to be even harder.
What are sales targets?
Confess, do you know what sales targets are? These are measurable sales goals, defined by a number and with a deadline to reach them.
Therefore, making more profit is not a sales goal, it is a desire. But having a profit of 2 million reads in 2 years is a sales target. After all, it’s the sales that will generate that profit.
What types of sales targets?
If you want to know how to work with sales targets, you need to know the two most commonly used types of sales targets.
There are goals that show a picture of the moment or the results of the past.
Here are some examples of sales targets of this type: sales volume in reads, number of sales made, percentage of sales growth.
The other type of sales targets are those that indicate a trend.
For example, the more calls your salespeople make, the trend is for them to close more sales.
So, see more examples of sales targets that indicate a trend: number of customer visits, number of sales proposals, and number of new customers gained.
Realize that these trending goals are always tasks or factors that are practical in how to achieve the snapshot goals of the moment.
Thus, if the sales team achieves as goals of fulfilled proposals and visits performed, it will reach as sales volume goals.
Therefore, there is no way to reach sales goals without thinking about both types of goals. Setting sales targets must always take this into account.
How to reach sales goals?
To understand how to work with sales goals, you can follow some simple rules. We selected 4 of them, trust and put into practice in your company.
1. The goal must be achievable
It is no use for the sales manager (or the entrepreneur) to create a goal that is impossible for the sales team to achieve because the only thing that will be able to do is make the team feel unmotivated.
There is no way to achieve sales goals without the team “buying the idea” of the goal so that it can actually be achieved. Otherwise, the entire planning goes down the drain.
That’s why it needs to be reachable. It is no use for the sales manager to set a fanciful and humanly unattainable goal, as this will harm the result of the entire team and, consequently, the entire company.
The team needs to feel provoked to hit the target! A meaningless goal only serves to demotivate the sales force.
2. Ask the seller to make their own goal
When a salesperson tells you what a goal he is willing to hit, he is committing to hitting a quota. This will make him seek what was promised.
When the leader is goals, he is often not taking into account the salesperson’s ability and experience. When the salesperson sells, on the other hand, he is declaring to the leader, to the entire sales force and to the company, that he is capable of meeting the quota.
Don’t underestimate the importance of self-imposed goals, they are powerful!
Use the salesperson’s commitment to ensure that he or she will see to it that your goal is met.
The goal plays a very important role in managing the sales force.
BONUS: Help the team combine professional and personal goals with Funnel of Dreams
It is more than proven that salespeople who work with clear goals and objectives perform better. Have you ever thought about boosting this stat by adding an extra dose of purpose to the team’s routine?
This is the purpose of Funnel of Dreams: to connect the salespeople’s goals with the company’s goals, showing the daily sales activities that need to be carried out to achieve them.
The platform configuration allows the seller to enter data about a dream to fulfill (trip, car, house, etc.) and about their sales performance. From there, the information is cross-referenced to generate a clear dashboard on the main sales targets that need to be met to ensure the dream is made viable within the stipulated period.
Nice, isn’t it?
3. Create a dashboard of goals
A dashboard is nothing more than a dashboard of what is happening to performance and how salesforce behavior influences the goal.
The dashboard is the thermometer of what salespeople are doing, are also getting there, and what they need to do to reach the goal. This is important for all salespeople to understand what needs to be improved to influence the other factors.
Often, in a salesperson’s mind, when the sales steps are not designed, the goal and the result are not looking for every day, he is doing everything possible to sell more. He believes he is doing his best!
When there is a dashboard, it is possible to track the impact of small actions (such as increasing 1 or 2 calls a day and 1 visit a week) on the overall goal and on the final result of the entire sales team.
The truth is, a written and visible goal is much easier to achieve. Therefore, making the goal visible to the sales team is of great importance at the conclusion.
4. Show the sales team the first step
It’s no use creating a sales goal together with the team and wanting them to do everything themselves. It is necessary to show the way forward to reach the goal.
This means that it won’t do any good to set a target for the seller and say that he has to sell 100,000 reads this month, an increase of 25% compared to last year and, on the other hand, it doesn’t show the seller how to reach targets sales like that.
Make it clear what the seller needs to do to reach your goal:
- what does he need to do more
- what he needs to improve
- what does he need to stop doing
These attitudes will make the salesperson feel secure and understand what they need to do to reach the goal. Certainly, this will drive directly into the result.
The goal should not be a 7-headed bug. The importance of goals is precisely in their simplicity.
Therefore, it needs to be a joint task of the entire sales force, in search of a common result.
Examples of sales targets
We are talking about sales targets that show a snapshot of the moment and others that are trend indicators.
It is very important that you understand the difference between these two types of sales goals and how to present them to direct the work of your sales team.
One methodology that uses these different types of goals is an OKR.
OKR stands for Key Objectives and Results. That is, Key Objectives and Results.
In this case, goals are the kind of goal that shows a picture of the moments. In fact, a picture of the moment you want to reach.
The key results are trending goals, which show if your team is on the right track.
For example, selling X thousand reads in the first quarter is a typical OKR goal.
On the other hand, to get there, key outcome targets are:
- Make 100 calls a day
- Visit 40 customers per week
Examples of OKR goals
How to define the key objectives and results?
For that, you must answer two simple questions, see.
- OKR Goal Setting Question: Where do I want to go?
- Question to define key OKR results: How do I know if I’m getting there?
A company that wants to increase its market share can answer the question “Where do I want to go?” Defined the following sales objective:
- Acquire 20% of new customers in 3 months
And to answer the “how do I know I’m getting there” question, you can set goals for your salespeople like these:
- Make 30 calls a week to customers requesting information from potential new customers.
- Increase lead generation through content marketing by 30%.
Did you notice that if the key results pointed out before being reached, there is a great tendency that the objective is also the same?
This is the secret behind the OKR methodology. And you can use this method to lead your sales team.
Here are a few more example goals for sellers based on the OKR questions:
A company that has just launched a new product:
Where do I want to go?
- Sell X thousand units of the new product in the first 3 months after launch.
How do I know if I’m getting there?
- Increase the sending of targeted email marketing to leads created by the marketing automation system by 25%.
- Schedule new product presentation visits for at least 35% of those leads.
A company that has just opened a branch in a new city:
Where do I want to go?
- To attract at least as many customers a day to our showroom point.
How do I know if I’m getting there?
- Increase user engagement in posts on our social media by 30%.
- Hold at least one weekly event in our new branch with the presentation of lectures and training of interest to our target audience.
Is it now clear to you how to use this type of sales indicator in your company? So, try using the OKR methodology in your business.