It takes a significant amount of strain to set up sales goals. And there can be many guiding factors which can make or break your ability to achieve those targets.
There’s no doubt every sales manager wants to drive more sales and therefore endeavor more success. Fact is if you don’t have a solid plan on how to achieve those figures… there are high chances of failure.
Sometimes in order to achieve the targets, a sales team runs behind deals which may be not-so-profitable & this can have serious adverse effects on your company’s reputation. A sales manager should always try to set targets, which the team feels are not just achievable but also motivating. If they start thinking the other way, you’ve got a problem in your hands.
Here are certain factors we need to keep in our mind before setting the goals for our sales team:
Setting sales targets
Setting targets for the team is not a big deal. Targets can be of any value, but what we should focus on is the path we take to reach there. The job of a sales manager shouldn’t be limited to sales quotas only. What he needs to do is to come up with better sales forecasts and plans/set of actions to achieve those numbers.
Start using your data for goal-setting
One of the smartest ways to set goals is by diving into the past data. Previous performances and historic growth rates of the team must be taken into consideration while setting your goals. They give a crystal clear view of the strengths and capabilities of your team.
Set up smaller targets to achieve bigger goals
You can never have a grip on the end outcome, but can certainly control your actions. Being result oriented beyond a point can affect your team and the sales pipeline in a big way. Try not to overburden your sales reps. by making them aware of the total sales target. The wise thing to do here is to divide your total target into smaller ones that look easier to achieve.
For instance, if your total target is $12,000 USD per year… divide it down to $1,000 in a month. It’s important not to make them feel helpless & vulnerable. Try to make them feel motivated. That’s the ideal way to go ahead.
Make your team know their strengths
Keeping the team’s spirit and confidence level high should be your primary focus. Sometimes the focus starts shifting towards revenue while setting the goals. Bad idea I must say!
Speaking of their strengths can go a long way in keeping their morale high. Encourage your team to grow professionally, which will end up delivering stronger performances in future.
Support your team
One-on-one interactions on a regular basis with the team makes it quite an easy job to understand the performance levels. Always encourage the team in celebrating their individual achievements. It keeps the morale high & promises better results.
Develop a compensation structure along with goals
Without clear goals to work towards, your team is likely to lose enthusiasm and momentum. This will have a massive impact on performance and revenue. It’s a must to have clear set of goals, which make your sales team deliver their best. The key to achieving best results is to have a bonus and incentive-based structure merged with the goals.
Comment your views on the above. I would love to hear it from you.