If you’re a small to medium enterprise (SME) then you’ll know that every sales target and quota matters and that setting achievable goals is vital to success.
Communicate sales expectations between employees
Whether you’re the manager of the business or an employee, communication is key. Studies have endlessly proven that excellent communication in the workplace drives sales. This is because it creates a rapport between staff members, improving respect and an understanding for each others’ roles.
Therefore, communicating your sales expectations between one another will allow the team to feel bonded and more on the same page – increasing the drive to succeed.
Consider all the factors when setting sales targets
As an SME, you have to get sales targets right. Too low, and employees may start to slack as they feel they exceed expectations. On the flipside, set too high and employees will feel dejected and have low morale. To set effective sales targets, consider the following elements:
- Realistic timelines
Should you set daily sales targets, weekly, monthly, yearly? If you set a daily sales target, remember that this will be different to a weekly one, and a weekly one to a monthly – and so forth. Adjust expectations accordingly.
Calculate the revenues needed for the business to succeed. Also, don’t feel let down if these are more varied than you expected. A path of income is income nonetheless. Remember to input all revenues into your sales targets if you want accurate outcomes.
Look at what sales quota suits your SME the best
If you want to drive profit, you have to implement an effective sales quota. Here are the four most common types of sales quota, and what they can be used for.
- Sales quota based on activity
Best for SMEs with a variety of touch-points, this style of quota works by measuring how much of an activity an employee does. For example, this could be the NUMBER of sales in a day, HOW MANY calls an employee takes, etc.
- Sales quota based on volume
Ideal for those SMEs focusing on growing revenue, a volume-based quota focuses on just that – the volume. It tallies up the total generated revenue over a given amount of time. Additionally, it may look at the number of units sold.
- Sales quota based on cost
If you’re an SME focused on expense control, this is the sales quota for you. It revolves around looking at an employee’s effectiveness at reducing costs. Such factors that implement into this include time efficiency, time invested, and additional opportunities taken.
- Sales quota based on profit
This is the best quota for the SMEs that offer a range of marketable products or services. This is because a quota based on profit looks at the sales performance of employees, therefore working best when an employee has multiple things to sell.
If you’re part of an SME and wondering how to set sales targets and quotas, consider Commissionly. Commissionly is a platform that aims to simplify the inner cogs of a business. Whether it be ways to pay, motivating your team, or integrating a new aspect, Commissionly does it all. As an SME, any help you can get could make a world of difference. Commissionly is the smart, affordable hand that you can take while going on your business venture.