Goals for sellers: practical examples for you to achieve your company’s success
Have you ever created a goal for sellers quickly? Those who have this task in their hands know how hard it is to prepare a goal plan for salespeople since in addition to planning, it requires patience so that the result comes out as expected.
To carry out a sales process, the first step is to know the profile and capacity of a salesperson. Some work slowly; others are more practical; others, didactic. Regardless of the type of salesperson, everyone should be looking for the same goal: “ beat the goal ” to receive the deserved increase in their monthly salary.
The goal plan for salespeople needs to sharpen the motivated employee who strives to increase their productivity to the end result. On the other hand, discouragement causes the entire team to fall apart and, consequently, the planning determined by the sales leader falls apart.
If you want to know how to set goals for salespeople, you’ve come to the right place. In this article, you will find:
- What are the types of goals;
- Tool to apply the types of goals;
- Individual or team goal: which is the best?;
- How to set the sellers commission;
And more. Follow us!
What are the types of sales targets?
As we saw above, sales targets are what drive salespeople to reach their goals. During structuring, goals are analyzed as goals calculated by number and deadline. For example, I want to make a profit of 5 million reais in 1 year. Does he understand?
They are divided into two types: past and present, and future. Goals that represent the past and present are the ones that show the analysis of the moment or the past result of the company, such as the sales volume in reais, the number of sales made or the percentage of growth.
What counts the future goals are related to trends, such as the number of calls that salespeople will make that day, what types of products should leave the store that week, and so on.
But be sure of one thing: the two types of sales goals go hand in hand. Let’s say that for a pet shop to grow, managers must keep in mind what it earned in a given period to earn x in a pre-established future period. Let’s give an example below.
OKR: a tool that serves as an example of sales targets
Now that you know the importance of target types for salespeople, it’s also critical to know how to present them in your company. Thus, there is a tool known as OKR (Objectives and Key Results), whose objective is to give a clear direction on the achievement of real numbers.
In this case, the objective (O) is the type of goal at the moment, while the key result (KR) corresponds to the trend.
1) A building material store wants to sell 15,000 reais in the first half of the year, so the internal salesperson must make an average of 80 calls per day, while the external salesperson visits 50 per week.
- Objective: Sell 15 thousand reais in the first quarter;
- Key result: 80 calls per day / 50 visits per week.
2) A dealership intends to improve the customer satisfaction index after the sale of a new line of cars, for this, it defines to get 300 responses in a satisfaction survey and, regardless of the responses, present an action plan of 15 improvements to the next semester, whether in terms of customer service, agility or parts of the vehicles themselves.
This set up of goal plan for salespeople is divided as follows:
- Objective: to improve customer satisfaction;
- Key result: 300 satisfaction survey responses / 15 improvement action plans for next semester.
When creating a goal system, ask yourself:
- OKR’s goal: “Where do I want to go?”
- OKR key result: “How do I know if I’m getting there?”
This strategy is valid for knowing how to set up a periodic goal plan, that is, weekly, monthly, quarterly, semiannual, and so on. This will make it easier to achieve the company’s true goals. Think about it!
Individual or team goal: which is more worthwhile?
When planned, goals can be a big step forward in the company’s profitability, but the question is: should the goal system be individual or team-based? This issue will be in charge of the managers who will evaluate it according to the team’s productivity.
Usually, the team model is used when they are united, whereas in the individual, each seller will be evaluated separately. This situation often happens when a new employee joins and the establishment wants to assess his level of performance.
If you want to test the individual model, it can be guided by 3 indicators:
- Diagnosis Scheduling – the amount of diagnosis needed to conquer X number of customers at the end of the month;
- Daily calls – number of people a salesperson must talk to in order to get diagnoses;
- Deals in the pipeline – Referring to a sales opportunity, here you must measure how many deals it is healthy to have in a pipeline at the same time. The purpose of the indicator is to point out whether the seller is not overloaded or idle.
How to calculate salesperson commission according to your goals?
An ever-changing topic at sales department meetings is how to commission salespeople. There are several ways, but consider organizing for both the seller’s and the company’s benefit.
In theory, the installation fee is pleasant due to recurrence, which contributes to a smaller impact on cash flow. However, this broken model doesn’t let the seller know if the month was really good.
In team commissioning, the company wins when the team hits the target, a system that strengthens the union between salespeople.
Finally, commissioning for non-closers remunerates all sales areas in a similar way, with the commission percentage according to the participation of each one in the sales cycle. The difference from the others is that the percentage is not calculated by the sale made, but by an average of the company.
How to set an efficient goal for salespeople in your company?
Realized that setting goals for salespeople take more effort than just a rough calculation? To encourage your understanding, we at IEV have been working since 2014 with the aim of helping companies to increase their productivity in a clear and objective way.
Therefore, we invite you to discover our Commercial Development Program, a customized strategy for your business. Over the course of a year, you and your team will certainly be able to achieve your sales goals.