Tell me what I must to do, and I will do it. The same is for sales goals. If I hire a salesperson for my business one of the first things that I must to tell him is what I will expect from him.
Do you have sales goals?
How you measure performance of your salespersons?
Here are five simple steps that will lead you through defining the sales goals and setting up tangible measurable to measure performance of your sales team.
1. Define Each Sales Funnel Level
Sales funnel is a way of visualization of the sales process. If you want to make real goals of the salesperson you must to define all levels or the processes that are needed one potential buyer to become a real buyer.
2. Look at Your Annual Business Goals
The second thing that you must to do is to look at your annual business goal to find how much income your business must generate to achieve that goals. Maybe you have a goal to increase profit for 6% from previous year. How much income you must to generate to achieve that goal?
3. Calculate Needed Sale That Must Be Generated From Each Salesperson
How much sales must be generated from an average salesperson to achieve your business goals from previous step. For example, if you have a goal to make $60.000 monthly and your business has three salespersons, each of them must generate $20.000.
4. Look at Sales Funnel Conversion Rates
Look at different stages of your sales funnel to define each conversion rate. The conversion rate between different levels in the sales funnel will give you information what action steps must be taken from each salesperson.
5. Let’s Play With Numbers
Now when you know how much sales each salesperson must make, and you know the average income from one customer we can continue with the calculations to find how much leads must be transformed into the sales funnel. Here we start from the last process into the sales funnel and finish with numbers for the first process.
Now if we have sales cycle something like this:
- Prospect calling – Awareness
- Conversation with decision makers and meeting with them – Interest
- Demonstration – Desire
each salesperson need to make:
- 835 prospect calls
- 167 conversation and/or meetings with decision makers
- 50 Demonstrations
- 20 Sales.
If you know individual goals for each salesperson you can measure performance of each of them.