Set Goals To Increase Sales
Set Goals To Increase Sales
Goals energize people and energetic people achieve more.
Goals signal the direction of the company and sales team.
Goals measure the achievement of the organization.
Do you know how to establish reasonable goals?
Follow this simple five-step plan to set goals to increase sales.
1. Start with national or company objectives.
You must know all metrics acceptable to sustain growth. Historical data should be considered in addition to the makeup, ability and desire of the entire sales organization. If the economy or governmental regulations impact your business you must consider them in your plan. Why not start at the bottom to establish goals? After all, don't salespeople have a better feel for potential and reality?
Scenario: Each sales representative assesses their territory, results from prior years, market share and potential. They "come up" with a projection and turn it in to the sales manager. They desire to hit their goals so they "sandbag". They decide to shave a few percentage points off the goals before submitting them. Other representatives apply the same logic. The Sales Manager adds up the goals and decides to act conservatively before communicating the projections to Senior Management. Believing the projections and the dire future they foretell, layoffs begin. Sales support and training get cut first. That's how a sales team can create a real problem.
2. Review territories and results to understand expectations and buying behavior.
Can you assess the impact of repeat or carryover business? Does your business fluctuate due to seasonality? Do you employ enough sales representatives to adequately serve the market? Can you quantify the effect of pending mergers and acquisitions? Did last year provide useful information?
3. Develop potential allocations to divide the national or company goal among the territories.
This may be done at the judgment of the sales manager. They may elect to use formulas based exclusively on prior sales. Or they may assess prior sales and market potential to determine territorial goals. Population of viable prospects and territories could be factors in establishing goals at the sales representative level.
4. Finalize the formula and process you plan to adopt.
Then you must test it by asking many questions that start with, "What if…?" What if mergers and acquisitions besiege your industry? What if a tropical storm causes catastrophic damage in your Southeast region? What if the largest account in each territory reduced the need for your product by only five percent? How would that affect your performance? Compare your plan to the performance last year. How would the new compensation plan have worked last year? Imagine you're a salesperson working under the proposed plan. Would it energize you? Would it move you to selling the right products? Is the plan aligned with company objectives?
5. Review the goals one more time and communicate them with the entire team and the department responsible for tracking and compensation. Schedule periodic reviews to assess achievement and progress.
Establishing goals is challenging. Poor goal setting leads to increased costs and can lower morale. If you sell in a volatile market you may consider goals with shorter time frames. In addition you should review them frequently and make adjustments as needed. Remember to communicate with the sales team the likelihood of this review as well as your solid business reasons for doing so. Understanding market potential allows you to reduce turbulence in the goal setting process. This is difficult in many business sectors but not impossible.
Goals based on business objectives and the markets are the most accurate. Strong sales managers are aware and recognize the difference in establishing goals for rewarding and recognizing employees and goals for use in performance evaluations.
Stack ranking sales representatives represents an alternative to setting goals although it is only fair if territories, opportunity and responsibility remain equitable.
Goals accomplish many things. They energize individuals and companies. They clearly communicate the direction of the company. Goal setting is a very integral component in the best selling organizations in the world. Do not trivialize this opportunity to increase sales.
"Not everything that can be counted counts, and not everything that counts can be counted."
Albert Einstein
Set Goals To Increase Sales - To learn more about this author, visit Dan Schoepf's Website.
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It's unlikely that any successful person or company operates without goals. They may have one giant or lofty goal. They may have a series of smaller goals leading up to the ultimate achievement but success is built upon goals. Goals accomplish many things. Three of the primary accomplishments are:
Goals energize people and energetic people achieve more.
Goals signal the direction of the company and sales team.
Goals measure the achievement of the organization.
Do you know how to establish reasonable goals?
Follow this simple five-step plan to set goals to increase sales.
1. Start with national or company objectives.
You must know all metrics acceptable to sustain growth. Historical data should be considered in addition to the makeup, ability and desire of the entire sales organization. If the economy or governmental regulations impact your business you must consider them in your plan. Why not start at the bottom to establish goals? After all, don't salespeople have a better feel for potential and reality?
Scenario: Each sales representative assesses their territory, results from prior years, market share and potential. They "come up" with a projection and turn it in to the sales manager. They desire to hit their goals so they "sandbag". They decide to shave a few percentage points off the goals before submitting them. Other representatives apply the same logic. The Sales Manager adds up the goals and decides to act conservatively before communicating the projections to Senior Management. Believing the projections and the dire future they foretell, layoffs begin. Sales support and training get cut first. That's how a sales team can create a real problem.
2. Review territories and results to understand expectations and buying behavior.
Can you assess the impact of repeat or carryover business? Does your business fluctuate due to seasonality? Do you employ enough sales representatives to adequately serve the market? Can you quantify the effect of pending mergers and acquisitions? Did last year provide useful information?
3. Develop potential allocations to divide the national or company goal among the territories.
This may be done at the judgment of the sales manager. They may elect to use formulas based exclusively on prior sales. Or they may assess prior sales and market potential to determine territorial goals. Population of viable prospects and territories could be factors in establishing goals at the sales representative level.
4. Finalize the formula and process you plan to adopt.
Then you must test it by asking many questions that start with, "What if…?" What if mergers and acquisitions besiege your industry? What if a tropical storm causes catastrophic damage in your Southeast region? What if the largest account in each territory reduced the need for your product by only five percent? How would that affect your performance? Compare your plan to the performance last year. How would the new compensation plan have worked last year? Imagine you're a salesperson working under the proposed plan. Would it energize you? Would it move you to selling the right products? Is the plan aligned with company objectives?
5. Review the goals one more time and communicate them with the entire team and the department responsible for tracking and compensation. Schedule periodic reviews to assess achievement and progress.
Establishing goals is challenging. Poor goal setting leads to increased costs and can lower morale. If you sell in a volatile market you may consider goals with shorter time frames. In addition you should review them frequently and make adjustments as needed. Remember to communicate with the sales team the likelihood of this review as well as your solid business reasons for doing so. Understanding market potential allows you to reduce turbulence in the goal setting process. This is difficult in many business sectors but not impossible.
Goals based on business objectives and the markets are the most accurate. Strong sales managers are aware and recognize the difference in establishing goals for rewarding and recognizing employees and goals for use in performance evaluations.
Stack ranking sales representatives represents an alternative to setting goals although it is only fair if territories, opportunity and responsibility remain equitable.
Goals accomplish many things. They energize individuals and companies. They clearly communicate the direction of the company. Goal setting is a very integral component in the best selling organizations in the world. Do not trivialize this opportunity to increase sales.
"Not everything that can be counted counts, and not everything that counts can be counted."
Albert Einstein
Set Goals To Increase Sales - To learn more about this author, visit Dan Schoepf's Website.
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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