Setting realistic and relatable sales goals can be difficult. Especially since they are key to keeping sales staff motivated. But successful sales goals also keep your business strong, keep investors happy, and make team leaders proud of their team.
At Commissionly, we know how to create realistic targets and have put together a list of the most common mistakes to avoid.
If a small proportion of your team misses their goal on a regular basis, then the problem is likely to lie with their techniques. However, if the majority of team members are failing, then it’s likely the problem is with the targets themselves. Start by defining what is realistic for your company and then create sales goals in line with this. Remember, targets should be manageable and achievable.
Every market and industry is different so setting the best goals for your business relies on following current market trends. Are you entering a previously untapped market or promoting a new product that fills a gap? Then aggressive sales goals may help you to establish your brand before competitors catch up.
You wouldn’t expect someone who hasn’t learned how to drive to be a chauffeur. Thus, you can’t expect new sales staff to exceed their targets immediately. There is an art to selling and anyone who is willing can learn the tricks of the trade. That means it’s important to teach new team members how you do things and impart any tips for success. You can also allow older team members to share their experiences and wisdom, improving communication and team spirit in turn.
At Commissionly, we pride ourselves on being the first cloud-based sales commission and sales compensation management web app for SMEs. For more information about our product and the benefits it brings, get in touch with us today [https://www.commissionly.io/sales-commission-dashboard/].
No matter the industry, the sales team is one of the hardest working teams within any business. Ask any salesperson what motivates them, and the answer will typically be “money”. Nobody gets into a sales role to achieve a basic salary and commission plays a huge role in ‘the win’.
Sales roles are demanding, and at times can be demotivating. Frequent rejection, the frustration of being passed from pillar to post as you navigate companies to find your buyer, having a customer on the hook and losing them at the 11thhour. It isn’t hard to understand how many sales reps can find themselves in a slump. Here are just a few tips on how you can improve the general morale of your sales team, and as a result, see a spike in employee performance.
Employee training is important, especially for salespeople. Regardless of their previous background in sales, if an employee does not intimately know what they are selling they are handicapped in the process. Invest in your employees, and ensure they are as knowledgeable as they can be about the products or services being offered and the differentiating factors of the company behind them.
A bonus and commission are often the key motivators for people within a sales role, as these are often a big contribution toward the monthly pay an employee will receive. Investing in a sales commission software will take the difficulty out of commission, it will automatically show each individual employee what commission they are earning, as well as show the efforts of the team as a whole. Having a system with real-time updates shows employees exactly where they are at any given time and where their peers are, which is ideal for target setting.
Within a sales environment, a competitive atmosphere is essential to bring out the best in your sales team. By encouraging friendly competition, whether it be with work targets or a sports sweepstakes, this will encourage the right atmosphere needed to drive up those sales numbers. By being able to track their performance and their commission targets, employees will be able to reflect more easily on what is and isn’t working for them within sales.
Finally, making sure your employees are happy within the workplace and feel as though they are valued and appreciated will do wonders for morale, improve retention levels as well as performance.
…is the next one! Sounds obvious, but this flies in the face of an old sales adage: you’re only as good as your last call. Not so! While that previous call might have established or continued a positive customer relationship, this really offers no more than an ‘in’ for the next time.
If a salesperson is making regular calls to established customers, then another saying should be front of mind. And it’s this: familiarity breeds contempt. However, this can be a bit harsh, so perhaps it should be adapted to: familiarity can breed indifference.
There are many salespeople who are satisfied with a call to such a customer where the previous order is repeated. They measure this as a success – and it’s fair to say that, on occasions, this might be the best outcome that can be achieved. However, that isn’t the same as being in a comfort zone where this is simply the salesperson’s expectation.
In the scenario just described, there can be a comfortable relationship between buyer and seller. Until, that is, another salesperson arrives on the scene behaving pro-actively. This individual is offering something new or different. This might be no more than paying proper attention to the client and their needs, rather than taking them for granted.
So, what might the something new be? It could be a product or service, or an improvement on what’s currently on offer. However, it might be no more than taking time to ask questions of the customer, to find out how their business – and therefore their needs – might have changed or be changing.
By the simple showing of interest, rather than just taking them for granted, a salesperson can move their relationship up a notch with regular, or infrequent, customers. Even for a first-time call, the level of genuine interest shown can be a game-changer! Author Maya Angelou said it well when she suggested that “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
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Creating sales goals can be difficult. Ensuring your targets are realistic enough that they are achievable, while also being high enough to boost efficiency, is a tricky balance to find.
One of the best ways to encourage employees is to ensure that any and all sales targets are relatable. If employees feel invested in their personal targets, they are far more likely to reach them. Here are a few tips on setting relatable sales goals, which are useful for all sectors and teams of any size.
Setting suitable targets for each individual is an important aspect. You can base these on years of experience, previous form and other circumstances. Of course, an experienced salesperson is likely to be able to sell more than a new employee so their targets should reflect this. Personalised targets also allow for greater self-reflection if they fail to meet them. This allows them to see where they can improve in the future.
Targets are always more relatable if your employees know on what basis they are set. Whether targets are set in line with projected company growth or last year’s figures plus 3%, explain to your staff that they aren’t arbitrary. It also shows how their efforts contribute to the wider company goals too
Target setting should be dynamic. If an employee consistently achieves their target, then it’s worth considering setting them a higher target to keep them motivated. If an employee falls behind, then discuss reducing their target; it may make it more realistic and help them stay engaged. It’s important to note targets should still be a slight stretch for employees so they don’t become complacent.
At Commissionly, we pride ourselves on being the first cloud-based sales commission and sales compensation management web app. We are 100% focused on SMEs. For more information about how we can help your business, contact us today [https://www.commissionly.io/contact-us/].