Every business aims to increase its sales. And one of the essential measures to do that is to set and track the target. If you do not set the standards, sub-standard will become a norm. Sales target allows you to set clear goals to measure, challenge, and improve your sales performance.
Setting targets will help you achieve more sales, but they will also introduce you to the shortcomings of your business that need to be taken care of.
Setting goals and then tracking them down should be in accord with each other. As per a recent survey, there was a growth of 17% in Sales for those who set and reviewed targets. Business Intelligence software can help you achieve that quickly and more effectively.
Points to consider before setting targets:
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Ascertain Company’s Goal:
Whether you are a year-old company or have been in business for years, you will have sufficient data in your ERP to help you decide how things should progress by the end of the year.
It is always advisable to investigate the past and, on its baseline, to decide your future activity. How many new customers bought your product in the last year? How quickly is your customer base growing? What are your best-case and worst-case scenario?
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Evaluate the market potential:
It is crucial to know whether there is a need for your product in the market, and beyond that immediate need, how much room is left to grow potentially?
If your product or service is unique, you can capture a larger market share with aggressive sales goals before competitors knock in.
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Review performance of sales team:
Before sending out the goals to the sales team, make sure they are capable enough to achieve that and have an idea of how to achieve that target together.
Dive into their proximity to know what is working and what is not. As Peter Drucker said, “what gets measured, gets managed.” To put it another way, “what doesn’t get measured, gets mismanaged.” Also, people improve on what you inspect and not what you expect. Data visualization provides the correct motivation and helps to achieve the target efficiently.
- Set realistic goals:
“When most of the salesperson cannot achieve the goal, there is a problem with the goal and not with the salesperson,” written by Harvard business review. Micro tools in BI helps immensely in setting the target.
Considering numerous factors like which industry you are in, how long you have been around, pricing, the clients you have worked with, how many new leads come in the day, new prospects in the pipeline should set the goals. Deciding goals without considering these factors might lead to over-ambitious goals that cannot be achieved and fetch disappointment.
While the above-discussed factors will help you set the goals, it is also essential to track the plans on a time-to-time basis. Tracking is as crucial as setting up the goal, as it will give a clear idea of how we are heading towards the attainment of goals. It also shows the method we have adopted to achieve the goals are adequate or need any change. With the help of tracking, one can know the probability of success of the set target.
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Tracking the target :
So, setting and tracking the target will help you to:
- Prioritize your area of sale
- Achieve more profit
- Understanding of gap in performance of sales team
- Increase in sales
While the above-discussed factors will help you set the goals, it is also essential to track the plans on a time-to-time basis.
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