Setting achievable sales targets is hard – but it doesn’t have to be...
Setting sales goals that are achievable is important for a business's growth & success. On the other hand, unrealistic targets can have negative effects, leading to a fall in sales performance, removing trust in management, and demotivating the sales team. Avoiding this downfall requires careful consideration.
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.If you need assistance in setting achievable sales targets, we're here to help. As your growth partner, we take the time to understand your business and support you in achieving your objectives. Whether its Sales Recruitment, Executive Search or Sales Training find out how a partnership with Pareto can propel your success.