How Do You Approach Goal Setting in Sales?
In the competitive world of sales, goal setting is key to success. We've gathered insights from seven seasoned professionals, including VPs of Sales and CEOs, to share their strategies. From setting measurable input activity goals to exceeding targets with SMART goals, discover how top sales experts approach and achieve their objectives.
- Set Measurable Input Activity Goals
- Implement Incremental Goal Strategies
- Strive for Continuous Improvement
- Use Competency Assessments for Goals
- Gamify Your Sales Goals
- Align Goals with Client Success
- Exceed Targets with SMART Goals
Set Measurable Input Activity Goals
Setting goals for the desired output does only half the job. Achieving these goals by the end of the target period depends on whether the required input activities were performed during that time.
By setting measurable goals for the required input activities, you encourage sales reps to exhibit better selling behavior. Focusing on the right input activities makes them more likely to meet their sales output goals.
For example, you usually set output goals, such as the number of orders or the revenue generated. Additionally, you should set input goals, such as the number of product demos conducted, the number of customers met (virtually or in-person, depending on your sales process), and the percentage of leads converted into meetings. Just consider the activities you want them to perform and with what efficiency, and translate those into input goals.
If you offer monetary incentives or bonuses to sales reps for meeting output goals, consider also rewarding them for achieving their input goals. Even if they miss their output targets this time, their consistent effort on input activities increases their chances of hitting those targets in the future.
Implement Incremental Goal Strategies
When we set goals, it's generally a two-step process.
The first step is to set a bigger goal that we know cannot be achieved in a short amount of time. For example, 50% demo close rates.
Then, we look at where we are right now and set smaller, incremental goals.
For us, we had a pretty high cost of sales conversions, and our payback period was too long. We wanted to make changes that would reduce the payback period over the long term. We set an audacious goal of an instant payback period on acquisition.
We had a smaller goal of cutting it by 20% a quarter over the course of a year.
The first thing we did was start tracking all relevant funnel metrics: demo booking rate, show-up rate, demo close rate, etc.
Our demo close rate was average, but our show-up rate was low, so we focused on improving the landing page and encouraging more people to attend through follow-up emails.
Just increasing our landing page conversions from 2% to 3% reduced our acquisition costs and payback period by 33%. We didn't even need to touch anything else. When we combined it with a sequence to remind people to attend the demo, we were able to cut our payback period by half in less than 90 days.
We blew beyond our short-term goals. Currently, we're trying other things to increase our average order value and optimize other aspects of our process to tease out incremental gains over time.
Strive for Continuous Improvement
Numerical sales goals should be specific and, whenever possible, measurable. They should be large enough to stretch you and create an accomplishment you can be proud of. Yet, not so large that at some relatively early point they’re likely to appear impossible, making it seem useless to keep trying.
Still, as a consultant to hundreds of businesses of all sizes and thousands of salespeople of all types, I frequently see goals getting in the way of success. If they’re too high, they can be discouraging, and after struggling for a while, people often simply give up. On the other hand, I’ve seen just as many people slack off because they’ve achieved their goal for today, or this week, or this month. In my experience, the yearly goal that works most consistently is simply the goal of doing the best job you can possibly do during every minute of the working day: this day, this week, this month, and this year. And after each day, each month, and each year, you do a quick evaluation: 'How could I have done that better?'
So that’s a constant goal for me, one I never completely achieve. But shooting for it, I’ve reached any number of lesser goals.
Use Competency Assessments for Goals
As the CEO of Hiring Indicators, I understand the critical importance of goal setting in sales. For sales professionals, goal setting is not just about aiming for targets, but about creating a roadmap that drives performance and growth.
At Hiring Indicators, we approach goal setting using competency assessments to ensure our sales teams are equipped with the skills they need to succeed. Initially, we conduct a comprehensive competency assessment to establish a benchmark for each sales professional. This assessment evaluates key sales-related competencies such as communication skills, negotiation tactics, customer relationship management, and problem-solving abilities.
For example, one of our sales professionals might score highly in communication skills but show room for improvement in negotiation tactics. With this insight, we set specific, measurable, and achievable goals for improving their negotiation skills over the next quarter. This could include targeted training sessions, role-playing exercises, and mentorship opportunities.
In summary, our approach to goal setting in sales at Hiring Indicators is rooted in competency assessments. By establishing a benchmark and continuously monitoring progress using competency assessments, we ensure our sales teams are developing the skills they need to achieve and exceed their targets.
Gamify Your Sales Goals
I love using gamification to supercharge my goal-setting and performance.
Here's how I approach it:
**Gamified Goal-Setting Approach:**
1. **Write SMART Goals**: I jot down specific, measurable, achievable, relevant, and time-bound goals in a simple notepad.
2. **Turn Goals into Quests**: Using gamification tools, I transform these goals into exciting quests with levels and rewards.
3. **Track Progress**: I use digital dashboards to visualize my progress, like leveling up in a video game.
4. **Reward Milestones**: I set up a system of points, badges, and rewards for hitting key milestones.
This approach makes the process engaging and fun, tapping into our natural desire for achievement and competition.
By turning tasks into challenges and tracking progress with points and rewards, I stay motivated and often exceed my targets.
Gamification can be a powerful tool for driving performance and achieving success.
Align Goals with Client Success
At Rail Trip Strategies, our approach to goal-setting in sales revolves significantly around the outcomes and success of our clients. We believe that aligning our objectives with the needs and successes of the agencies we partner with not only drives our growth but also solidifies our relationships with our clients.
One clear example of a client-centric goal we set and achieved involved improving the ROI for a digital marketing agency specializing in the healthcare sector. Recognizing the challenges and high expectations within their niche, we set a goal to enhance their campaign performance by 20% over a six-month period.
To achieve this, we first conducted a thorough analysis of their existing campaigns and identified key areas where enhancements could yield significant returns. We then tailored our lead-generation strategies to better target healthcare providers who were most likely to engage with the agency’s services. This involved refining our messaging, optimizing our outreach channels, and implementing a more rigorous follow-up process to ensure maximum engagement.
Additionally, we enhanced our reporting systems to provide the agency with more detailed insights into campaign performance, enabling them to make informed adjustments in real-time. This proactive feedback loop allowed for continuous refinement of strategies throughout the campaign lifecycle.
By the end of the six-month period, not only had we achieved the goal of improving their campaign performance by 20%, but we had also helped the agency secure several long-term contracts with major healthcare providers, significantly boosting their portfolio and industry standing.
This achievement underscored the effectiveness of setting goals that are deeply intertwined with client success. It’s a testament to our commitment at Rail Trip Strategies to not just meet, but exceed our clients’ expectations through strategic alignment and dedicated execution.
Exceed Targets with SMART Goals
At InReach CE, goal setting in sales is approached with a clear focus on measurable and achievable targets. I start by aligning my goals with the company's overall objectives, ensuring they are specific, measurable, attainable, relevant, and time-bound (SMART). For example, one of my recent goals was to increase our customer base by 20% within six months. To achieve this, I implemented targeted outreach strategies and leveraged our existing client success stories. As a result, I not only met but exceeded the goal, achieving a 25% increase in our customer base, which significantly contributed to our revenue growth.