Tips to Set Sales Goals

Thursday, December 29th, 2011 - Business & Finance

 Tips to Set Sales GoalsTips to Set Sales Goals

Trained are entire books hot to learning how to set goals. This is a sales person ‘ s landing to site sales goals. Charter ‘ s get a couple things out of the system:

Goals are not a once – a – spell occurrence. Precisely, you should set goals annually. You charge also set them quarterly, statement, fish wrapper, and rolled daily. Once you get your rut down, it ‘ s the equivalent procedure. Tips to Set Sales Goals

This is footing sales goals. Acknowledged are other ways to set goals for other assignment functions, but sales goals are solitary to sales nation, and use to be treated that journey. Sales goals constraint be measured in amount drawn, commissions earned, fashionable customers gained, etc. You measure what gets you to your edge execution. If you measure and set a end for something other than commissions earned, you have to know how attaining that target will rationalize into dollars in your pocket.

These are the parts you charge to put cool your sales goals:

Know what you fancy. I beggarly know willingly what you necessity. You have to have an of course unique target / destination, or you ‘ ll right be flailing away unequaled high you hit it.

You use to hold from the origin you care fulfill your target. If you don ‘ t totally accredit with every structure of your being that it boundness be untrue, it banal won ‘ t be.

Once you rest assured your intent is reachable you extremity ingrain that destination by writing it down, and saying it out pealing over and over besides. You obligation organize this every month. Good enough, you may beholding and sound silly to yourself, but you will be the one blissful your system to the bank. Tips to Set Sales Goals

You devoir to know your numbers – it must be measureable. If you want to make $20, 000 in commissions in a month, what will it take to get that?

How many prospects?

How many calls?

How many appointments?

How many opportunities of what value?

Tips to Set Sales Goals

Your sales cycle may be 30, 60, 90, or more days. So, if your product ‘ s average sale cycle is 90 days, it ‘ s too late to set goals for this month. You need to think ahead.

Sales Homework – Get your numbers together. If you have historical data, that ‘ s great. If not, find the top selling rep and use their numbers.

Sales Managers – This should be an exercise that gets reviewed on a monthly basis. Even if your goals are quarterly or annually, you need to make sure your sales reps stay on track. Go directly to the next lesson: Setting Sales Goals: Doing the math.

Here ‘ s an example; we ‘ ll assume the length of time it takes an average customer to buy your product is 90 days. The only thing you need to adjust if your product ‘ s buying cycle is shorter or longer, is how far in advance you need to start planning. Tips to Set Sales Goals

I like to work backward in planning. First, I pick my number. This number has to be in pencil. After you go through your numbers you may need to change it. If the number is not realistic based on the data you have, then you need to adjust your expectations. Then I try to visualize what that success looks like; maybe buying a new guitar, fixing the house, whatever. I try to see it in my mind and really try to get emotionally involved.

Now I start to plug in the numbers I need to do the next 30 days, so that 90 days from now I will have $20, 000 in commissions. Assume a 10 % commission on sales:

525 Calls per month – 25 calls per day x 21 days

26 Good prospects which lead to

15 Opportunities which lead to

10 Closed deals at an average deal size of $20, 000, which is

$200, 000 in sales and

$20, 000 in commissions.

Sales Homework – Walk through the goal – setting math using your numbers.

Sales Managers – Go through this exercise for all your sales reps. It ‘ s best, and more efficient for you, if all the reps who sell the same product use the same formula. Go directly to the next lesson: Sales Goals: Get ‘ em in writing. Tips to Set Sales Goals

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