Setting goals is an important task for any business as it drives the planning and strategies, going forward.
Goals can be department specific or company-wide and these goals allow the employees to understand their roles and perform their tasks. Goals ensure that your business is constantly striving to grow and boost revenues.
One of the most important aspects that require goal setting is sales. Creating goals for your sales will help you to strategize your plans better and take measures to improve it.
What are the sales goals or targets results?
Sales targets or goals are objectives created for the sales team to work towards achieving. This keeps them driven and motivated and increases productivity. Goals can be set on a weekly or monthly or quarterly or yearly basis.
What is the need to set goals?
Setting sales goals is critical for any business as it drives the operations and the employees keep everyone motivated and lead to steady growth.
Sales goals keep everyone motivated to hit specific targets that benefit the company. They also help the sales representatives to realize their value and the impact they are having on the business. Sales goals allow you to set standards for success and show what someone is lacking in case they fail to achieve the goals.
There can be different types of sales goals. Let’s take a look at some of them:
- Monthly sales goals: As the name suggests, monthly sales goals are targets that need to be achieved by the end of the month. It gives you the proper time to understand the success of a sales rep. A weekly check-in would be too short a time period and quarterly or yearly check-ins could be too infrequent to assess the success.
- Activity sales goals: These goals generally refer to the day to day functions and duties. These goals can be set for any period of time to ensure that specific activities are being completed properly. Activity goals help people in improving specific activities or functions.
- Sequence sales goals: These goals prioritize the goals of your sales team from most to least important. This allows your team members to focus on one goal at a time. This also allows them to focus on achieving important goals.
- Waterfall Goals: These goals are set in a top-down format. They include the details of goals and expectations from each individual in the team starting from the highest-ranked member and going down in order. These goals help in building team morale and increasing the confidence of reps to produce high-quality work at all levels.
- Unit Sales Goals: Goals are set on the number of units you are able to sell no matter what the good is. It can be something tangible like automobiles, machines, etc or something intangible like software and such. Goals can be set on a weekly, monthly, quarterly, or yearly basis and require the sales reps to sell a certain number of units of the commodity. It is a great method if you want to increase the number of individual products sold by the sales reps in a given time period.
- Win rate sales goals: Win rate is referred to as the percentage of deals closed in a given period of time. It is a great way of increasing motivation as it facilitates friendly competition.
- Incentivized Sales goals: Generally, most sales goals set by companies are incentivized. This results in the sales reps receiving a reward for meeting the set targets. Incentives are fixed by managers or higher-level executives. Rewards can be tangible or intangible. It is a great way to keep the reps motivated and brings a competitive edge as well.
- Mentor Sales goals: Mentor sales goals are set between a sales rep and their mentor. It is done if someone is struggling with certain aspects and helps them to work closely with mentors and improve their skills.
How to set the sales goals?
Setting goals to take your business forward can be a challenging task at times.
- Choosing the type of goals you want to set: This is the first step in setting goals for your sales team and creating strategies accordingly. As you have seen there can be different types of sales goals. You need to analyze, and understand certain aspects like the product or service you are selling, the resources at your disposal, and how realistic are the goals to achieve. Keeping these things in mind, you need to select the type of goals you want to set.
- Set Smart Goals: It is very important to set smart goals that are attainable, specific, measurable, relevant, and time-bound. This helps your goals to remain concrete and well suited for the business. Goals should be set in this manner to keep them clear and motivate the reps to achieve them. Setting unrealistic goals that cannot be achieved makes no sense as it will only lead to decreased productivity due to loss of motivation.
- Share the goals with your team and implement them: It is important for your reps to understand the goals that they are working to achieve and why they are doing so. It is important to make them understand the need for goals and how achieving them can take the business forward. This motivates them to work harder towards achieving these goals. Goals can be shared in various ways like meetings, presentations, etc.
- Monitor the progress: It is very important to monitor the progress of the goals that have been set. It is important to check in from time to time and see whether the goals are being achieved or not. This helps you to intervene and take the required steps if necessary in case the goals are not being met. This allows you to find out what’s going wrong and take measures to rectify them.
Some important sales goals tips:
It is important to keep in mind a few tips that can come in handy while setting sales goals for any industry:
- Use data: Data is what runs the world today and can be used to achieve various benefits. Try to incorporate real-life data as much as possible into the goals. Data provides a strong basis for the goals you set and ensure that they are achievable and accurate.
- Train and educate the sales team: Constant training for the sales team is essential. It can be product-based or based on strategies and marketing tips. Make sure that the reps have all the tools required and are able to use them well to reach the goals.
- Set small goals if needed: Don’t be afraid to set small goals as they can go a long way in making your business better. Small goals allow you to address issues better and get better results in many cases.
- Reward the reps: Everyone works in the hope of getting the right rewards. Try to reward your sales reps when they achieve goals as it keeps them motivated and hungry for more.
These are just the basics that need to be kept in mind while setting goals for your business.
Goals can be short term or long term depending on the expectations from the business and the kind of product or service you are selling.
No matter what it is, do make it a point to set your goals carefully to take your business to newer heights.