“Setting goals is the first step in turning the invisible into the visible.”- Tony Robbins
Having a roadmap makes your journey more structured with a higher chance of reaching the destination.
The purpose of a roadmap in your journey is fulfilled by sales objectives in sales. It gives a framework for the sales process, a guide to the salesforce, and streamlines sales for the managers.
Sales objectives open a lot of opportunities for overall sales. So let's delve more into the topic.
In this article, we will read about sales objectives, how to set sales objectives, and sales objectives examples.
What are sales objectives?
Sales objectives are specific and measurable goals assigned to the sales team to achieve them within a defined period of time. Having a roadmap helps salesforce to focus their actions and strategies towards fulfilling those goals.
Sales objectives are often aligned with the larger company objectives. Hence, by guiding the salesforce efforts and providing a sense of direction it becomes easy to measure their progress and helps contribute to the organization's growth and profitability
Examples of sales objectives include increasing sales, revenue, performance, customer retention, etc.
How to set sales objectives
Setting your sales objectives requires a step-by-step process where you evaluate your current performance and then plan out the future.
So here is a guide to setting sales objectives, which should also include designing a comprehensive sales incentive plan to motivate and reward your sales team for achieving those objectives.
Determine the goals to achieve
Have clarity on what you aim to achieve. Chart the larger company goal and assign each team and individual their objectives to be fulfilled. This ensures that the steady contribution from each member cumulatively contributes to the larger growth and success of the organization.
Evaluate the Salesforce Potential
While setting sales objectives, sales managers must be clear about their salesforce potential. Their historical performance, potential, and talent must be taken into consideration while assigning individual salesforce goals. This ensures that they are motivated to fulfill their sales quotas and do not feel overburdened by their duties.
Set team and individual goals
Sales goals can be divided into two. Sales team goals and individual goals. Evaluating the overall team performance and the potential of each member of the team helps in assigning relevant and attainable goals. Each member and team has a part in the overall growth of the company.
Incorporate tools to track
The evolution of digital tools in today’s business operations has helped monitor and keep track of the performance and progress made. Sales performance management tools monitor the sales progress made and thereby provide coaching to enhance their performance to meet the sales goals and objectives. Additionally, these tools also enable in-depth sales performance analysis, allowing businesses to identify trends and areas for improvement in their sales strategies.
Setting sales objectives is an ongoing process. Every quarter or year sales teams need to evaluate the progress made in the previous period, the goals to be achieved in the coming period, and strategize on how to go about it. These regular updates help the sales team to stay competent and relevant in the industry competition.
Building a sales roadmap helps salesforce understand the larger company goals, and what's expected of them thereby contributing their part in driving sales and goals.
For further reading, check Mastering Sales Attainment: Strategies for Reaching and Exceeding Targets.
Sales Objectives Example
Setting goals and working towards them will always help salesforce to streamline their efforts and focus on achieving them. Some of the examples of sales objectives include:
- Increase sales revenue
The crucial work of the salesforce is to increase the sales revenue. Each year bringing in deals larger than the previous year helps companies to grow consistently and maintain their competitiveness in the market. To achieve this, regular sales performance evaluation is essential, allowing companies to assess the effectiveness of their sales strategies and make data-driven improvements.
- Improve win rates
The lead generation process is the easy part of sales. But converting these potential customers to loyal clients is the task. Moving through the sales funnel various factors can abort their journey and stop the deal. Hence, increasing the win rate must always be a top priority in the salesforce list.
- Reduce sales cycle length
Sales cycle length is the duration between the first contact to the closing of the deal. The efficiency, skill, and talent of a successful salesperson is in reducing the sales cycle length and closing more deals in a short time.
- Improve quota attainment rate
At the beginning of the quarter or year, each salesperson will be assigned a sales quota. Their whole strategy is to achieve their sales quota and win the on-target earnings. Sales quota attainment is one of the important metrics in evaluating sales performance. Additionally, offering SPIF (Sales Performance Incentive Fund) bonuses can further motivate sales teams to exceed their quotas and drive exceptional results.
- Enhance customer retention
The cost of customer retention is much less than customer acquisition. In addition, your existing customers have the biggest influence on branding. Hence, it is important to ensure that your customers are ensured the promised services and have a smooth customer experience. This ensures a long-lasting relationship with your clients.
- Boost sales performance
Salespeople are evaluated based on their performance. The number of leads generated, the sales cycle length, the number of deals closed, revenue generated, and customer lifetime value are some of the metrics to evaluate their effectiveness. Tracking the improvement made by the salesforce is a must-point in a sales objective.
- Achieve goals with a timeline
Sales is a profession that requires discipline. Generating leads, keeping track of the prospects, and timely closing deals to get the commissions and perks. The number of sales closed, revenue generated and quota attained are important in determining the final pay of the salesforce.
Salesforce focuses on various points while building their sales objectives. Personal improvements like sales performance and number of deals closed to overall company objectives like revenue generated to customer retention come under sales objective examples.
For further reading, check How to Identify Your Company Objectives for Growth & Success.
Having a framework on what the work is, what is expected of you, what are the goals to be achieved, how to go about and what are the perks out of it helps salesforce to get better prepared for their work.
These roadmaps help the salesforce to upskill and work better to make personal growth and drive the company to success. For salesforce getting the guidance alone won't bring in the desired improvement.
The motivation they receive from the organization is also decisive in bettering their performance. The most effective motivational tool for salesforce has always been the commissions and incentives they earn.