Sales are the lifeblood of most businesses. They bring needed funds into a company, which can then be used to further grow the business.
To maximize your sales team’s effectiveness, you should give them goals to meet each quarter. For instance, you can assign each person sales prospecting targets and encourage employees to turn a certain number of those potential clients into customers.
The exact nature of your sales goals will vary depending on the nature of your business. Just be sure to set some goals for the team. Here are some reasons setting goals makes a big difference in sales.
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Goals provide direction
Goals give both your employees and your business a general direction. If everyone meets his or her goals, you can feel confident that the company is on the right track.
Employees, meanwhile, need to understand what is expected of them. Otherwise, there could be a disconnect between upper management and the lower-level workers. Goals ensure that everyone is on the same page.
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Goals motivate workers
Goals can also be used as a motivational tool. For instance, you can offer bonuses to employees who exceed certain sales targets. This will encourage them to work harder even when they are feeling tired.
Similarly, goals provide a simple way to evaluate employee performance. Workers will know that if they meet their goals, they will get increased commissions or promotions. They also realize that a failure to hit their goals could lead to termination.
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Goals improve focus
Goals give employees something specific on which to focus. When things seem overwhelming, they can always fall back on tasks that push them further towards their goals.
Similarly, employees without goals may jump from task to task aimlessly. This could reduce their production and increase their stress levels. Goals guide them on the correct path and prevent them from wasting time on pointless jobs.
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Goals encourage innovation
When employees are motivated to improve their own performance, they may come up with new techniques to boost their efficiency. You can then share those strategies with the rest of the team.
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Goals provide learning opportunities
Goals are even beneficial for workers who do not reach their sales targets. They will learn what did not work and change up their strategy for the next quarter. Whether your employees miss, reach or surpass their goals, they should learn more about the sales process and use their newfound skills to grow as a salesperson.
Tips for setting sales goals
There are various different types of sales goals. The most basic type of goal, a closing goal, focuses on the number of sales achieved. You may also opt for size goals that encourage employees to finalize the biggest and most valuable sales possible.
If your workers have various experience levels, you may want to set percentage-based growth goals. This way, you can judge each employee on his or her improvement instead of comparing newcomers to veteran sales representatives.
To foster teamwork, you should also set goals for the entire sales department. This will encourage cooperation and reduce stress among your team members.
To set effective goals, start by assessing your business and its current sales records. You should also consider the sales numbers of your competitors.
Next, identify what you want your salespeople to achieve. If your company needs more cash, for instance, you should prioritize large-value sales over volume. You may want to talk to members of the sales team to find out what they see as realistic goals.
Be sure to also provide your employees with the requisite support for success. This may require additional training or an increased marketing budget. Do not be afraid to adjust your goals when unexpected circumstances, such as a market recession, arise.
Sales teams need goals in order to thrive. Setting goals will keep employees on task and motivated. Giving your workers clear goals, and rewarding those who exceed those goals, should thus help your company outsell its competitors.
