Irrespective of your company’s size or the industry you are in, your sales team’s performance plays a vital role in your company’s success. They are the ones who nurture and convert leads into paying customers.

 However, the average sales conversion rate across industries is 2.46%-3.26%. But, this does not mean you cannot get your conversion rate by more than 3.26%. 

With our years of experience in the sales field, we have created a list of sales goal examples that can boost up your sales team’s performance in no time. 

But, before we move to the goals for salespeople, let’s first understand what business-aligned goals are. 

What are Sales Goals?

Sales goals are the key objectives for your sales team. More precisely, what do you want them to achieve? Convert more customers? Reduce customer churn? Or increase the average order value?

Remember, when aligned with your company’s future ambitions and broader vision, sales goals will help generate better results over the long run. The best approach to align your sales goals with your company’s ambitions is by collaborating with all the departments in the organization, including C-suite, finance, and marketing. 

Also, to increase your sales teams’ success rate, break larger goals into several small ones. For example, if the long-term goal for sales reps is to increase year-over-year revenue by 30%, divide it to 7.5% per quarter.

Sales Goals Examples To Power-Up Your Sales Team’s Performance

Now that you know what sales goals are let’s take a look at the top sales goals and objectives examples that can help boost your team’s performance.

1. Increase the Revenue

Generating revenue is the primary goal of every company. It not only helps keep the business running, but it also opens the door for continued growth. 

While you can set revenue targets monthly, quarterly, or annually, it is always better to set targets for each. That’s because there will be months when business will not be as good as you would want to. 

That’s why we recommend setting annual goals and then dividing them into quarterly and monthly targets.

How to Meet This Goal?

The first step to meeting your revenue goals is by setting a realistic target. For example, if you have been generating monthly revenue of $15000, you can’t expect to increase it to $50000 the next month (it will happen, but it will take time). 

You can do so by analyzing past data. Check:

  • How much revenue have you been generating over the years? If you don’t have enough data, analyze your competitor’s income. 
  • Are there any months when you generate more (or less) revenue than others? 
  • What is your lead to conversion rate? This defines how many leads you need to generate to increase your revenue. 

The next step is to set revenue goals for your entire team. You could also consider breaking them into individual sales goals for each of your reps. 

Then, define the processes that your sales reps should follow to achieve their targets. Also, determine if you can increase the revenue by selling additional products or services. 

For example, Apple’s primary revenue driver is its phones, but it generated around 3.5% ($6 billion) of total revenue from AirPods (a side product by Apple). 

2- Increase Profit Margins

Increasing profit margin is one of the most common sales goal examples. Profit margin refers to the amount of money that you retain after deducting the operational costs. A typical goal here would be: increase the profit margins by 20% by the next year.

Depending on the type of your product, you can implement different strategies to increase the profit margins. For example, if you sell physical products, you can boost the profit margins by increasing units sold. But if your earning model is recurring subscriptions, focus on reducing operating costs and upselling. 

How to Meet This Goal?

The average profit margin across industries is 10%, but you can elevate yours by following strategic methods, such as:

  • Minimizing the number of discounts given to prospects
  • Increasing the average order value 
  • Selling more units each month 
  • Reducing operating expenses
  • Increasing customer retention rate
  • Boosting customer lifetime value

3- Minimize Customer Acquisition Cost

Reducing customer acquisition cost (CAC) is yet another great sales goals examples. CAC refers to the total cost you incur to acquire a customer. It includes costs like:

  • Calling costs
  • Marketing and sales expenses
  • Sales representative’s commission and salary
  • Technical costs (tools and software that you use to store customers’ information)

Minimizing customer acquisition cost is essential as it significantly improves your profit margins and helps determine how effective your sales processes and products are. A typical goal for sales reps would be: reduce customer acquisition cost by 10% by the next quarter.

How to Meet This Goal?

While the average customer acquisition cost varies from industry to industry, the strategies to reduce it are the same. 

  • Calculate your current customer acquisition cost
  • Identify the areas where you spend more money than others (e.g., advertisement, follow-up calls, etc.) and why.
  • Check if you can reduce your spending in those areas without negatively affecting the conversion rate. 

Once you have completed the above steps, make efforts to:

  • Increase customer retention rate.
  • Reduce reliance on paid advertising. 
  • Improve your lead qualifying process.
  • Use automation to speed up repetitive tasks, such as lead generation and email campaigns.

4- Reduce Customer Churn

One of the most common sales performance goals, customer churn, refers to the number of customers who cancel their subscription or stop making purchases from you in a certain period. 

Reducing customer churn is vital because 80% of your future profits will come from just 20% of your existing customers. Besides, a 5% reduction in the customer churn rates increases profits by 25-95%. 

A typical goal for salespeople here will be to reduce customer churn by 6% by next month. 

How to Meet This Goal?

The first step to reducing the churn rate is understanding the reason behind churning. What made the customer leave your company? Did they have a bad experience? Are your prices too high? Have they found an alternative to your services? 

The best way to determine the reason is by directly asking them (via email or phone). Another way to identify the reason for the lost relationship with the client is by looking at reviews (if they have left any) or social listening (if they are talking about your product on social media). 

Once you have identified the reason behind churning, follow the below tips to reduce the churn rate. 

  • Communicate with the customer (via email or phone) and encourage them to come back. You might even need to give a discount to attract them. 
  • Educate the customer about your product (and what makes it stand out from your competitors). 
  • Offer free training, webinars, and video tutorials to help your customers stay on top of industry trends.
  • Encourage customers not to cancel their subscriptions. Netflix is a great example of this. When you try to cancel your subscription, they encourage you to downgrade your plan instead of canceling.
  • Improve your customer service. One way to do this is by providing 24/7 customer support. You can also consider installing chatbots on your website for instant resolution (for commonly asked questions). Also, make sure to coach your support agents with AI-driven insights.

5- Increase the Average Order Value

The average order value is yet another sales performance goal that directly impacts your profit margins and overall revenue. The best thing about this sales goal is that you have already convinced the customer to purchase from you. All they need is a little push to purchase a high-value product. 

Another benefit of increasing average order value is that you will be earning more revenue without rising marketing and sales costs. 

A typical sales performance goal would be: increase the average order value by 20%. 

How to Meet This Goal?

  • Product recommendations: Profile popular products or items related to the one the customer is viewing.
  • Upsell: Have a higher plan that might suit your customer’s needs better? Encourage them to opt for it. 
  • Cross-sell: Are there any complementary products that might go better with the item the customer is about to purchase? Tell them about it. 
  • Set order minimums for a discount: Incentivize customers for spending more by giving them a discount when they spend a certain amount on your store. 

Loyalty programs: If you sell consumable products or something that a customer might need to repurchase (e.g., food, cosmetics, etc.), consider creating a loyalty program. For example, Beardo, an online male grooming store, has created a loyalty program that encourages customers to spend a certain amount to enjoy the programs’ benefits. These benefits include exclusive discounts, cashback, and more.

6- Boost Customer Lifetime Value

Customer lifetime value (LTV) refers to the total amount of money a customer is expected to spend in your business during their lifetime. And as mentioned above, making more revenue from existing customers is easier than drawing the same value with the new ones. 

Besides, customer lifetime value is directly associated with customer loyalty. This means, the longer a customer is associated with you, the more likely he is to tell his friends and colleagues about you. 

A typical sales goal would be: boost customer lifetime value by 15% year-over-year. 

How to Meet This Goal?

Increasing customer lifetime value is a continuous process. You have to consistently focus on the customer to make them stay with your company for longer. 

Having said that, let’s look at the best strategies to increase customer lifetime value. 

  • Improve the onboarding process. Help customers get the most out of your product with how-to guides, dedicated support, webinars, or video tutorials. To give you an example, here is an email that I received from BuzzSumo within a day of subscribing to their services. Apart from asking if I need any assistance, the email consists of links for live training sessions. 
  • Tell customers how much value your product is generating for them. For example, Grammarly sends weekly emails highlighting the top grammatical mistakes (demonstrating the product’s effectiveness). 
  • Share highly-engaging, personalized content via email based on how a customer uses your product. 
  • Offer high-end customer support. One-third of customers say they consider switching companies after just one instance of bad customer experience. You can consider offering 24/7 phone/email support, live chat, social media support, and creating a knowledge base. 

7- Shorten the Sales Cycle

The sales cycle refers to the number of days it takes to convert a lead into a paying customer. This is one of the most common goals for salespeople as a shorter sales cycle means more time to generate and convert additional leads. 

Depending upon the complexity of your product, the sales cycle might vary. For example, it would take more time to convert a B2B customer than a B2C because in B2B there is more than one person involved in the decision process. 

Again, in B2B the sales cycle differs based on the contract value. For instance, SaaS B2B deals of less than $2000 take an average of 14 days to close while greater than $100,000 take on average 3-6 months to close. 

A typical sales goal example here would be: reduce cycle time by 8-10%.

How to Meet This Goal?

The first step to shorten the sales cycle is understanding what takes so long to close the deal. Is it the price? The value offered? Or your sales processes?

Build a list of possible reasons why it takes so long to close the deal and then create strategies to combat it. 

You could also reduce the sales cycle by:

  • Trying to establish contact with the primary decision-maker. 
  • Improving your lead qualifying process. 
  • Providing effective solutions to customer’s concerns. 
  • Allowing the prospect to use your product for free for a limited time. 
  • Implementing social proof (e.g., case studies and success stories).

Final Thoughts

Sales goals help keep your whole team on the same page and work together to satisfy a collective aim. It also enables you to gauge your sales representative’s performance, so you know who needs assistance and who to incentivize. 

The seven sales goals examples mentioned above will most likely align with your company’s objectives and can help pull your sales team together to meet those results.

Did we miss any vital business-aligned sales goals? What other goals have you implemented in your company? Let us know in the comments. 

Updated : May 6, 2021


Read The Most Well Researched & Insightful Articles From CallHippo Team

Request a Demo


Get Started Now!

Share This