Knowing goals, defining average ticket and using a CRM tool are some tips for successful sales goal management
How is your sales goal management? What planning do you make today so that your business goals are achieved?
If you’ve had difficulty answering these questions, this article has a lot to add to your everyday life. Read on to learn how to manage business goals like that of Sky Marketing!
First of all, what are goals?
Before explaining how to do good sales goal management, let’s take a step back and understand what a goal is all about.
A goal is the definition of the path, time and means that will be used to reach a goal — what you really want to achieve. With well-defined goals, it is easier to reach that end.
Goals need to be well described, detailed, planned and aligned to a specific objective in order to be well executed.
An example could be “increase the amount of website visits by 20% in one month”. Note that “what you want”, “how much you want” and “when you want” were described.
That way, it is clear where you want to go. However, it is necessary to break this goal down into activities. A practical and efficient way to achieve this result is to complement the goal, using a method called SMART Goals.
Meta Smart is a method created by Peter Drucker, widely used to better detail the activities necessary to complete the goals or even to stipulate sales goals in a more coherent way.
SMART is the acronym for the words:
- Time-based (limited to time).
In a smart and detailed goal, each project participant knows for sure what they need to do and when to do it. On the other hand, when a goal lacks detail and doesn’t follow SMART guidelines, it doesn’t direct any action and, therefore, doesn’t generate productivity.
Sales target management: how to do it
Now that we know what goals are and how we build them, how can the commercial area define sales goals and how to plan to achieve them?
1. Know your goals
Don’t forget that, before setting sales targets, you need to know your objective, which is actually where you want to go. This goal needs to be measurable and achievable.
Let’s see an example to make this theme more didactic since the subject needs a lot of attention and study so that actions that will not be directed towards its objectives and goals are not applied.
Suppose a company needs to increase its sales in line with the company’s growth goals. For this, this company needs to define this increase. Assuming that, for this example, the company wants to achieve year-end revenue of $1,200,000, it needs to receive $100,000 in revenue per month.
2. Define your average ticket
The average ticket is a metric that helps predict the percentage of sales in each period, which helps in managing sales goals.
The value is determined by the average between the amount of your sales and the number of products sold that generated that amount. If your company has been in the market for a few years, you can also use statistics from previous years.
If your company is newly created and it is not yet possible to measure this data, it is necessary to know what is the growth percentage of the market segment in which your company is inserted and what is the expansion forecast for the following year.
This information can be found in trade associations, newspapers, on the internet and even through your own research, especially when it comes to local businesses.
3. Know how many sellers you need
Returning to the example we used earlier, if this company needs to receive R$ 100,000/month in revenue and its average ticket is R$ 100, it is necessary to sell an average of 1,000 accounts of your service per month or 12,000 accounts per year to close your goal.
Let’s say that this company currently has 5 sales teams and each team has 10 sales reps, that is, 50 reps.
The commercial goal needs to be passed on by the team and will then be reorganized by each representative. If it were simple, you could just pass the total goal on to the sales team. So, if the company needs to sell 1,000 accounts a month and there are 50 salespeople, making a simple account would require each salesperson to make 20 accounts a month.
But it’s not that simple!
In addition to all this, it is essential to know the market well. And in order to reach that number of sales, it is necessary to measure the work done by your team to generate a sale. You need to know what activities will be required by the seller to reach that number.
For example: for a salesperson to reach a sale, he needed to have talked to x people to make a closing. For this seller to talk to x people, it was necessary to prospect y people. And to prospect y people, a listing with z people was needed. It got a little complicated, didn’t it? Let’s make it easy:
As an example, the team of Blue World City is using Inbound Marketing and Content Marketing methodologies to generate customers will be used here.
In other words, for this company to reach the stipulated goal of reaching 1,000 customers in a month, it will need to have this activity described in the sales funnel above.
Reading the funnel would look like this:
- It is necessary that the website of the company in question receives 430,663 visits;
- From experience, using the Inbound Marketing strategy, this value would generate 2.6% of conversion, that is, 11,111 Leads (interested in the offer made available on social channels);
- From this number, 3,333 opportunities would arise or 30% of the number of Leads (which are possible customers, already engaged with the topic) that will be forwarded to the sales team;
- And, finally, this amount of opportunities could generate 30% of customers, which is the 1,000 customers needed to reach that goal that was defined back there.
It was only possible to reach these values because all these sales stages, arranged in the funnel, were measured. Thus, it becomes feasible to provision revenue.
4. Identify your sales bottlenecks
Sales bottlenecks are problems that delay the achievement of goals. And the first step in solving them is, of course, knowing what they are.
Some common examples are lack of salespeople, poor management of resources, lack of training, unnecessary expenses and high prices for products or services.
Bottlenecks can result in high employee turnover, lack of commitment, widespread dissatisfaction, among other problems. In order to manage sales goals well, therefore, it is necessary to get rid of them.
5. Use a CRM tool
Good business goal management is easier when you have a good CRM tool.
With it, it is possible to monitor the performance of the team and each salesperson individually, using visual and automatically generated reports. With this real-time view, you learn which salespeople are struggling to hit the target and can take action before the end of the month arrives.
The tool also allows you to follow in detail the relationship history with each contact or customer. It is also possible to record the reasons that led the sales not to materialize. The more information the better!
Without worrying about recording the progress of negotiations in spreadsheets, with all the data organized and in one place, the sales team can work focused on what matters — hitting goals.
Did you like to know how to successfully manage sales goals? Now, it is essential that sales professionals are prepared, trained and well guided in this direction. Because, in addition to planning and setting sales goals, the development of the sales team is a crucial part of achieving these goals.