Running your business, do you only assign your reps with one sales target, like completing sales quota? If that’s what you do, you have set up an incorrect strategy.
To solve that, you can give you reps smaller and specific target each month or even each week. This one may be a good strategy so that the reps can sell more. It can make them focus and build their confidence.
This article will explain how to determine individual or team sales target. These points may look like a burden for you, but the result will not disappoint you.
Related article: 5 Tips To Manage Sales Leads Effectively
Calculate Monthly Target Sales
Before setting a target per individual or per team, you must ensure that the target plan matches the annual target. After determining the annual target, calculate how many departments, teams, and sales people that must be involved to meet these targets each month.
Apply the Sales Target Gradually
Budget for ramp-up time cost for employees if you are going to implement a new target. Let’s say, you have this target: your sales now send 50 emails per week and you want to increase to 100.
You can’t jump suddenly to the new target. Instead, do it slowly. Increase it by 60 this week, 70 the next week, and so on until your target is reached.
This is important because if the reps are unable to meet the new target, they will feel that they have failed and hence lose their motivation. With this strategy applied, they do not get burnout from the task given hence, they can perform in a much better quality.
Sequence Sales Target
In other words, determine your priorities. Decide which target that will bring you higher profits and prioritize it. But if you are going to set a target for junior sales, set targets that can help them improve.
Sequencing the sales target will be useful if it turns out the reps are not able to meet all the targets. At least, with the prioritized target has been put first, companies still can earn profits.
Change Sales Target Number to Activities Target
To determine what needs to be done in order to achieve the target, consider your employee’s track record through the sales system pipeline to see what they have done to reach the previous targets. In this way, you can change the sales target (which may be somewhat daunting) to metrics that can be organized.
Determine the Sales Incentives
What incentives do you give to the reps if they meet the sales quota? Bonuses and compensation are what keep them motivated to do their best. However, what are the incentives for smaller targets?
Be attentive to what makes your sales excited. You can promise them a cash bonus or a fun weekend getaway. You have limited incentives budget? No problem. You can give them a chance for networking or additional leave as a bonus.
Monitor the Sales Target Progress
The whole strategy will be in vain if it is not being monitored. You can keep track of your company progress through the dashboard in your sales system in real-time. If you find reps who does not meet the target, talk to them immediately before their monthly target gets disrupted.
Provide Training for the Reps
If your reps have prolonged difficulties in meeting their targets, do train them or give them a mentor. Explain them the framework that you want them to work with or you can ask them to think about that with their mentor.
To have somebody to share with is perhaps exactly what they need.
Setting up a sales target will affect how much income that you will earn. To do this, of course, requires a good coordination between sales and managers. Communicating sales targets and monitoring them must be carried out effectively and optimally. Therefore, the company will be able to execute sales perfectly.