Meeting a quota shouldn’t be the only goal your sales reps have. Hold your reps accountable to smaller weekly or monthly goals that build their confidence and give them incremental wins. These smaller goals can also help track progress towards larger goals, and give you more opportunities to correct the course before the main goal is missed. By holding your sales reps to smaller weekly or monthly goals, you’re increasing the likelihood they’ll meet their bigger number.
Studies like this one have found that setting specific goals increases motivation. In addition, this study reported that those who stuck to a goal-oriented plan performed 30% better than those who didn’t. What would 30% better performance from your sales reps look like for you?
If you want motivated salespeople who have the support they need to succeed, here’s some recommendations on how to set smarter sales goals for your sales reps.
How to Set Better Sales Goals
- Calculate monthly goal
- Set incremental goals
- Prioritize goals
- Set activity goals
- Monitor goal progression
- Incentivize sales goals
- Provide support
1. Start by calculating your monthly sales goals
Both individual and team goals should align with annual sales goals. Find your monthly sales goal by working backward from your company’s annual revenue target. Once your monthly target is defined, calculate how much your individual reps need to sell to meet that goal. Take seasonal or staffing variations into account when setting goals to make sure they your goals remain attainable. For example, if you’re onboarding three new salespeople next quarter, it might not be the best time to set aggressive sales goals.
2. Set incremental goals
Allow for adjustment periods when you’re implementing new goals and onboarding reps. If your reps are currently making 50 calls a week and you want them to make 200, don’t immediately hike up their weekly goal. Instead, if it’s a very significant change, raise their goal week by week. This approach is better for morale, because missing goals can increase fear and squash motivation. Your team won’t experience burnout from the sudden increase in work, and you’ll give them time to ramp up quality.
3. Prioritize goals
Prioritize your goals by determining which bring the highest value when hit. Make sure your reps are focused on meeting those first. Prioritized efforts mean even if your reps don’t meet every goal, they’ll be more likely to meet the ones that matter most to your company’s bottom line or their professional growth.
4. Set activity goals
If you know how much your rep needs to close this month, you can convert that target into activity goals. Use your salesperson’s historical performance to figure out how many emails, calls, and meetings they need. For example, let’s say your sales rep needs to close an average of four deals per month to hit quota. From their sales reports, you know that 50% of their demos close to deals, which means their target should be at least eight demos each month. You also know that 30% of their calls lead to demos, so they’ll need to call roughly 27 people. By working backwards like this, you can turn a large revenue goal into manageable pieces.
5. Monitor goal progression
Track progress via a dashboard in your CRM. Remember, these smaller goals give you more opportunities to correct the course before the main goal is missed. If someone on your team isn’t hitting their weekly numbers, talk to them before it becomes an impediment to meeting their overall quota. Monitoring these small goals makes them worth the extra implementation time.
6. Incentivize sales goals
Create incentives for your sales reps to help you meet business objectives. For example,if your reps are easily closing new business, but that business churns three months in, that’s not good. In this case, you’d want to set goals that incentivize reps to close only quality leads that are a match for your business long-term. For example, you might give a cash bonus to every rep hitting quota whose retention number is higher than a specific percentage.
You can also set collective goals, and motivate your entire team. Provide an incentive that’s only awarded when everyone meets the goal. For example, all salespeople must hit X number of calls/meetings/emails, X amount of revenue, or X% client retention. Incentivize this goal for your team and watch them work together to help each other succeed.
7. Provide support through goals
If a rep is having trouble ramping up or hits a rough patch, provide a framework you’d like them to work through in order to improve their performance and start meeting their goals. You will need to provide specific goals to track their progression. For example, if they need to get better at prospecting, make it a goal for them to increase outreach calls by 10% every week.
The result of better sales goals is motivated salespeople who have the support they need to succeed. Make sure goals are both challenging and attainable. That’s the recipe for happy, successful reps.
Do you have new HRO sales professionals on your team? See what the right support system could do for your ROI. Learn about our sales readiness training.