How to Set Sales Goals for your Team
There are many ways to motivate your team as a sales manager. From bonuses to variety that helps keep staff feeling fresh and invigorated, it’s important to put motivational tactics at the top of your to-do list. However, few things can be quite as motivational as setting some aspirational sales targets.
Setting targets not only makes sure your team is working towards achieving business goals, it also inspires them to push themselves harder to achieve those benchmarks of success. This is especially important at the start of the new financial year, when sales teams need to know how they can achieve success in the 12 months ahead.
Effectively creating sales goals will:
- Inspire your staff
- Benchmark individual and team performance
- Push company growth
In this guide, we explore how to set sales goals that are right for your team and the value of getting it right.
At Pareto Law, we understand the importance of sales goals for inspiring your team. We also know that to hit your targets, you need the right people. Find the best sales talent with expert sales recruitment honed with over 25 years of experience.
Define realistic sales targets
You should always set achievable sales goals. Those that are– challenging without being too easy or too hard for the team.
To understand how to set realistic sales goals for your employees, start by reviewing the team’s performance from previous quarters. This will provide you with useful insights into what is achievable and where you want the team to aim to beat the previous target.
As sales improve and your team further develops their skills, you can raise your targets to ensure there’s always a challenge there to work towards.
If your sales goals could be affected by individual weaknesses, consider rolling out refresher sales training in your team to bring everyone up to speed.
Think about sales goals that work
Every organisation has its own unique goals– whether that’s related to revenue, clients or other measurable factors. Your sales targets need to be specific to your company and well defined to help it grow too.
For most companies, the executive board set separate company-wide goals. These targets will affect your own sales goals and how you choose them.
In some cases, this may require defining a higher base target for your team than initially intended. If so, employees may need additional motivation and mentorship, which could require training for further developing skills.
Make goals measurable
Using dates from previous quarters can help determine your sales metrics and KPIs appropriately. This data will give an accurate representation of your team’s past performance.
If your sales goals aren’t measurable, your team can’t be confident in their achievements and you can’t track how realistic they are. Break them down into monthly goals to help meet your wider target.
These can include how many sales and calls you expect your team to make. As a sales manager, decide if these goals are for the wider team to work towards or if each employee has an individual objective.
As well as monthly sales goals for your employees, it can also be a good idea to set regular deadlines. These need to be realistic and achievable, or you may find that your team faces stress and demotivation.
Employees will benefit from set deadlines, as it makes them aware of expectations by the end of every month, keeping things on track. Deadlines can also be a great motivator, as it gives your team goals close in the future they can work towards.
Consider team vs individual sales goals
When it comes to setting sales goals, it helps to separate team versus individual targets.
Individual employees work differently, bringing a diverse set of skills to your team. Your deputy sales manager will undoubtedly perform at a higher level than a junior member of the team, simply because of their greater experience. Treat your employees fairly by setting them individual sales goals based on their level and skills, which ultimately combine to reach your overall team targets.
Of course, how you decide to set your sales goals depends entirely on what’s best for your company and the skills of your sales team.
As the UK's largest sales assessment and training provider, we have a wealth of knowledge and resources. For over 25 years, we have provided bespoke sales training to industry leaders, helping them develop their teams from good to great! If you want to help your organisation enhance the skills of your team and subsequently, meet your targets - speak to a member of our team today!