You might be wondering what to aim for in sales?
Or maybe just don’t quite know where to start.
Don’t worry my friend, we are going to help you get started in sales right here right now!
And by the time you finish reading this short article, you will know with certainty what to do, when and how without any doubt.
Boosting your sales achievements to new heights and with it, the juicy commissions you bring home as well!
With that said. Lets get into it straight away!
- What are sales targets in sales?
Sales targets are achievable sales actions, usually representing a portion of a goals set by either the sales rep or the sales manager.
There might be different type of sales targets in sales. For example a specific number for each sales activity.
Like “150 prospecting emails to be sent out this month”
or “25 sales interviews this month.”
You can set a sales target for each and every sales activity (emails, calls, texts, prospecting, meetings, closes, revenue earnings, follow ups etc)
- What is quota setting in sales?
Quota setting in sales is very similar to sales target setting.
In fact the 2 words can be used interchangeably.
To be specific a quota is an achievable specific number.
You can have quotas in each sales activity, but usually it is used to measure and motivate sales reps towards just one important result (like revenue generated, or number of closes or commission)
- How to set your sales targets and quotas
You would go about this by first measuring your or your teams most recent performance.
You can take the last week or even month and collect all the data regarding sales activities (emails, calls, meetings, closes, revenue generated, upsells, follow ups etc)
Once you have that, you would calculate the averages. Averages that show or answer questions like:
-“How many prospects needs to be contacted to get a close?”
-“How many emails and calls result in a sales interview?”
-“How many interviews results in a close?”
-“How much do we earn on average per close?”
Knowing these numbers you can now perform a calculation for targets/quotas.
Firstly, figure out what you are aiming for? And how much do you want from this thing you are aiming for?
You might be aiming for one of the following:
-Number of new buyers
With this in mind, it will be easy for you to use the averages, and know how much of each sales activity you need to reach your overal goal.
So you can set targets and quotas in accordance with the overall sales goal.
Meaning that if the team does these smaller sales activities, it should (mathematically) result in the achieving of the grand sales goal.
- How to use targets and quotas to the fullest
Once you have your averages and quotas/targets set.
You need to divide these actionable targets/quotas between your sales reps.
Once that is done, divide their targets/quotas by 4. This gives an idea of how much they need to produce per week. Now this number you can divide by number of working days in a week, which gives a clear target for the sales rep for each and every day.
With this method you just took something complicated and grand, and broke it down into easy to do day-by-day action plan!
With this your sales should be easy from now on:)
Oh, forgot to even mention!
Do you wish to make this even easier?
Why not check out our free quota targeting app for 2 weeks? Simply go to www.salesquotasetter.com and you can get started in 3 minutes:)
ANNND. If you need to improve your sales team’s quota achieving ability, check this page out for some free documents.
With that said, good luck and happy selling to you!