How to Set Achievable Sales Targets in 6 Steps

In this blog, we'll guide you through, step-by-step, the process we’ve developed over the past 25 years of living and breathing sales to set realistic and achievable sales targets.

Step 1: Analyze Past Performance

Before defining new targets, you need to understand your team's past performance. Analyzing previous sales results from the last year or quarter will help identify patterns and trends, forming a foundation for setting achievable goals. This data will also reveal top-performing salespeople and areas that need improvement, enabling targeted training and skill development.

Step 2: Consider Your Business Situation

Every business is different, so consider your company's specific circumstances. Factors such as financial stability, market position, and available resources play a big role in determining achievable targets. A well-funded business might set more ambitious goals, while limited resources call for more realistic expectations.

Step 3: Account for Market Conditions

The market can profoundly impact your sales team's performance. Consumer behavior, economic trends, regulations, and competition all influence the market environment. Understanding these factors will help you set targets aligned with the current state of the market. A favorable market can boost sales, while an unfavorable one might pose challenges in reaching goals.

Step 4: Involve Your Sales Team

Your salespeople are at the frontline of your business and understand their capabilities better than anyone else. Involving them in the goal-setting process creates a sense of ownership and accountability. Their insights into consumer behavior and challenges can be invaluable for coming up with challenging yet attainable sales targets.

Step 5: Monitor Progress

Setting sales targets isn't a one-and-done task. Regularly monitor your team's progress to track performance and identify areas of success and improvement. Continuous monitoring keeps salespeople engaged and motivated to achieve their objectives. Early detection of underperformance allows for timely adjustments to the sales strategy.

Step 6: Set SMART Targets

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Setting targets in this manner provides clear, focused goals for your sales team. This approach ensures that your team understands the expectations and has a clear timeframe to deliver results. SMART targets enhance engagement and serve as a powerful motivator for driving sales momentum.