If sales representatives have only one objective, namely, to meet their quota, their motivation can quickly diminish.
To get salespeople more involved and to motivate them to achieve their primary objective, set specific targets. The gradual achievement of the goals will give the sales representatives more confidence.
They also support you to hold onto pace with the sales representatives' progress in the direction of their overall objectives and thus be more available to representatives in difficulty.
A Harvard University study found that the motivation of salespeople with specific goals is more critical than merely resolving to "do your best."
The study also found that students who followed a targeted action plan scored 30% higher than other students. It would be interesting to calculate what a 30% increase in the performance of different representatives would mean for your company.
Find out below how to set individual and team business goals. Despite the work involved in setting goals, the results are real because salespeople are motivated and have the support they need to perform.
Setting Business Goals
1. Calculate the monthly sales target
Personal or team objectives must be consistent with annual sales targets. To do this, deduct the monthly sales target from the company's annual sales forecast. Then calculate the sales volume that the department, teams, and individual representatives must achieve to reach the goal.
Be sure to take into account seasonal and staff fluctuations. If you hire three new salespeople this fall, it doesn't seem very easy to achieve ambitious goals in the fourth quarter. However, as you might expect, you can adjust your targets and be more demanding in the third quarter.
2. Setting cascading targets
Plan to increase the time when implementing goals and to integrate new representatives. If reps are currently sending 50 emails per week and need to reach 100, don't immediately double their weekly goal. Gradually increase the target to 60 emails next week, then 70 the week after, and so on.
This cascading approach is more rewarding, as unmet goals can be frustrating and demotivating. It also leads to better quality work and increased performance. The team will not experience a sudden increase in practice and given time to improve quality.
3. Prioritizing objectives
It is essential to rank the objectives. Identify the goals that, once achieved, generate the highest added value and ask the representatives to make them a priority.
If you prioritize the objectives of a young sales representative, set goals within achievable limits. If he needs to develop his prospecting, enquire him to escalation the number of calls made by 10% per week.
With prioritization, if sales representatives are not able to achieve all objectives, they can at least make those that are most important to the company's bottom line or their professional development.
4. Define business objectives
If the sales representative expected to generate € 4,000 in sales in one month, convert this target into a business goal.
First, study the sales rep's performance throughout the sales funnel to determine how many emails, calls, and meetings he needs.
Suppose the salesperson is required to close an average of four transactions per month to meet his or her quota. If 50% of his demos convert to deals, he must demonstrate to eight prospects per month. If only 30% of his calls result in demonstrations, he must call approximately 27 people.
This deductive work allows you to turn a (sometimes intimidating) revenue target into more easily understood indicators.
5. Incentives to reach objectives
There are several incentives for salespeople to meet their quota: receiving bonuses and variable pay and keeping their jobs. It is interesting to find out what can motivate them to achieve less critical goals.
Motivations can take a variety of forms. You can offer a bonus or gift to those who reach their weekly targets.
6. Monitor progress towards objectives
There is no point in setting targets if they are not monitoring. Track the progress of sales staff via a dashboard in your CRM software, or ask them to enter their weekly results in an Excel file.
If a team member does not meet their weekly quota, take the time to review with them before they are unable to meet their monthly allowance. It is essential to track these "small" goals to help better representatives meet their overall objectives.
7. Set specific objectives
This approach is not valid for everyone. If a representative has difficulty meeting his or her quota each month, a specific goal will only increase his or her anxiety.
You can, however, set specific and realistic goals for a high-performing representative, for example, 125% of the goal. It will increase the representative's motivation.
Examples of personal business goals
After considering how to set objectives, look at some examples of individual business objectives.
If a representative does not participate in any professional development activities, ask them to participate in one event per month.
If a representative is unable to set up product demonstrations, set a goal of demonstrating to a team member once a day and then twice a week to sharpen their skills.
Once a salesperson is having concern making discovery calls, enquire them to set up three demonstrations per week, then four, then one per day.
Some sales representatives are not able to keep in touch with new customers. As part of their goals, ask them to contact each new customer at least once a month and then once every two weeks to maintain healthy relationships.
Examples of team sales goals
After defining individual goals, set team goals. Below are some cases.
Offer recompenses to those who have reached the objective, instances such as treating them to a nice dinner.
For a friendly competition, find out which of the representatives will manage to get the most appointments or demonstrations in one week.
To get your team to close more deals with companies, set a goal for each representative to schedule at least three demonstrations with company prospects during the quarter.
In a subscription environment, the transaction cannot be count if the representative quickly closes a new offer, but the customer cancels their contract. Set goals that motivate sales reps to close deals only with qualified leads that meet your company's criteria. For example, give a bonus to all sales reps who reach their quota and have more than the specified percentage of loyal customers.
As you set new goals or update old ones, ask sales reps how they feel about them. Make sure goals remain realistic, challenging, and achievable if you want salespeople to be motivated and perform.