There are some set objectives for your sales team that focus on specific sales KPIs. These are known as sales goals. Some of the sales goals examples are: increasing revenue year over year, enhancing customer retention, and the list goes on.
The finance department, sales team, and the executive team will all collaborate together in order to set sales goals that will foster the company’s growth. Once the goals are set, the sales team is liable to convert them into trackable action.
There are certain things to keep in mind while establishing sales goals:
Instead of setting one big goal, you need to create smaller goals. You can also keep rewards if your sales team meets these goals. This will help to boost their morale, confidence, and productivity.
Creating and achieving a sales goal is a daunting task. The goals should neither be too big neither too small. Make sure they are aligned with the current resources and can be achieved by your sales team.
Sales Goals Examples for your Sales Team
Let’s take a look at some of the sales goals examples:
Increase your Monthly or Annual Revenue
The primary sales goal example is revenue targets. Most of the companies set the sales goal as increasing the month-over-month/ year-over-year revenues by 10%.
Depending on the type of business you have, you can set your revenue targets monthly or annually.
Why it is important: Revenue is the most important component of a company’s growth. In order to ensure profitability, it is important to create a sales goal related to revenue.
How to Achieve this Goal?
If you want to achieve any goal, you need to prioritize it. What can help you the most is a highly functional CRM system. It can improve the probability of meeting sales goals. With the help of this system, your sales rep can keep track of his own goals.
Reduction in Customer Churn
Retaining your customers is quite important if you want to ensure the success of your company. Customer churn refers to the number of customers who leave your business during a certain period. Ideally, monthly customer churn should be less than 1%.
Enhance Profit Margins
In case your company is unable to deal with recurring revenue, then one of the best sales goals is unit and margins. Units refer to the number of times your product is sold whereas margins refer to the amount of profit gained from each of the sales. It is often expressed in the percentage. Ideally, the sales goal is to increase profit margins/units sold by 10%.
Increasing the units sold is quite important as it helps in the company’s growth. It also provides you an insight into the important products generating maximum profit for your company. Similarly, margins are important too as they help in predicting how much costs can be recovered with each sale.
How to Meet this Goal?
If you want to achieve this goal of selling more units, then your sales team will have to increase activity and strive to grab more leads. To make the task easier, you can ask your sales team to use some specialized AI tools. Another thing that you can do is to provide your sales team with better training in order to generate more leads through sales calls.
Improve Customer Lifetime Value
Customer lifetime value refers to the cash value a specific customer contributes to your company during the length of their subscription with you.
Thus, you can make an excellent sales goal of increasing the total value every customer spends over the life cycle. Ideally, you can create a sales goal of increasing customer lifetime value by 10-20% year over year.
Why to set this target: As getting money from a customer you already have is much cheaper and easier than getting the same value from a new customer. The difference is around five times the cost with a new customer as compared to the old one. That is why it is advisable to improve the customer lifetime value.
How to Achieve This Goal?
To achieve this goal, the sales team should strive to upsell and cross-sell. The team should communicate with existing customers by sending them emails and managing calls for them to find out whether the upgrade is working for them or not.
A good CRM and the right tools can be beneficial in this respect. These will help the customer match his product needs.
Enhance the Number of Qualified Leads
Besides closing deals and creating revenue, keeping your pipeline filled with fresh prospects is important. So, an objective can be built around it. An ideal sales goal example in this respect can be to increase the number of qualified leads by 18% per month.
Why it’s important: Having the right number of qualified leads can increase the probability of having a greater number of close deals.
How to Achieve This Goal?
For achieving this goal, you can allocate time during your sales team’s day for researching. This way you will be able to find high-quality leads. Always remember that a smaller number of high-quality leads is always better than the high number of junk leads.
You can even take the help of various tools available these days to streamline the process.
Surge in Win Rates
If you want to bring the best out of your sales team, then increasing win rates is the best sales goal. Win rates refer to the ratio of won deals to the total number of closed opportunities.
According to research, the ideal win rate for most industries is 47% along with a 25% loss-to-no-decision rate. An ideal sales goal in this respect can be to increase monthly win rates by 5%, but if you find that it doesn’t work then you can focus on reducing the loss-to-no decision rate by 8%.
Why it’s important: Having a win-rate sales goal helps in tracking the success of the company and contributes to its growth. It can also ensure the effectiveness of the sales funnel.
How to Achieve This Goal?
If you want a surge in the win rate percentage, then you can focus on your team’s weaknesses and suggest methods to improve them. You can even guide them about the working of each phase of the sales funnel and how they can address a prospect in each phase. You can give suggestions on how to send the perfect follow-up email.
Make sure you train your team to manage the buyer’s journey in a better way by increasing win rates and lowering no-decision losses.
Reduction in Customer Acquisition Costs
One of the best sales goals is to reduce customer acquisition costs, which is the total costs incurred in the process of winning a new business, right from marketing to salaries and overhead expenses. An ideal sales goal in this respect is by reducing the average customer acquisition cost by 8%.
Why it’s important: Reducing the customer acquisition cost can help to reduce cycle time and the risk posed by customer churn.
How to Achieve This Goal?
It is very important to evaluate your sales process to check where all the spending is going. Create your buyer personas carefully by scrutinizing all the details. You need to know whether you are targeting a number of hard-to-reach prospects. Ideally, a customer’s lifetime value should be around three times their customer acquisition cost. If you are not able to achieve this, you may need to change your approach in order to target more accessible customers so that you can get more value for that.
You can ask your sales representatives to follow up with their prospect customers through email or call the ones who are already in the sales funnel. For example, you can target those customers who have subscribed to your newsletter, shared a blog post, or downloaded a demo.
Another thing you can ask your team to do is to use technical tools to gauge where the most leads are coming from, whether they are coming from emails, website landing pages, and a lot more. Then you can retarget through these areas. This process is known as A/B testing and can be very beneficial if you want to move away from expensive marketing channels.
Lessen Cycle Times
Your average cycle time depicts how long it takes to convert a lead into a deal closed-won. A sales cycle is a series of events that happen during the selling of a product or service. The average length of a cycle depends on both the industry and the size of the deal involved.
According to research it has been found that, in SaaS, the average sales cycle for a closed-won deal of a value greater than $20,000 is 96 days; the average sales cycle for a closed-won deal of a smaller size (<$2,000) is 14 days. An ideal sales goal example is to reduce the cycle time by 5-8% depending on the type of deal.
Why it’s important: Your cycle time depicts everything about your sales process including the setting up of the sales funnel, how ‘prospect targeting’ is going. It also depicts whether the sales representatives are able to automate menial tasks in order to provide more focus on the selling part. Lessening your sales cycle will help your sales team to perform better and close deals faster.
How to Achieve This Goal?
One of the initial stages of the sales cycle is to prioritize research and planning. It will help you achieve your targets faster and efficiently.
Automating processes can prove to be quite beneficial for your sales team it will help you achieve your sales goals and reduce your cycle time.
Tracking Sales Time per Week
A very important and effective sales goal is to track how much sales time your team is taking per week. If your sales team is focusing on account management responsibilities along with admin and research-based tasks then the time for selling can be reduced. This way your sales team will end up spending only 36% of their total time on work related to selling. An ideal sales goal example will be to increase weekly sales time to around 50%.
Why it's important: When you give more sales time to your team per week, then it can help you identify any flaws in your process that hinder your team from giving that extra time in order to make that extra win.
How to Achieve This Goal?
The best way to achieve this goal is through automation and CRM tools. Through automated solutions, you can keep a track of follow-up emails, accounting, commission, extra macros, and a lot more.
Learning management software can also be helpful as it can help to streamline the research process.
You need to evaluate certain periods during the week where you get more deals, then work accordingly. You need to understand which methods are more effective for your team in order to nurture or qualify leads.
Set Activity Objectives
No matter sales goals are important, but it is also vital to analyze your team performance through activities. Apart from checking monthly or quarterly results, you need to grade your team based on the activities they are performing. An ideal sales goal example will be to increase the number of cold calls/scheduled demos/video calls by x%.
Why it’s important: There are certain factors that may lead to indecisive prospects and few wins. But by knowing about a rep’s activity, you can evaluate how well the process is working for practical outcomes. You need to keep your sales team motivated. You can also suggest what they can do to hit their targets, and maintaining the pace of activity in your pipeline.
How to Achieve This Goal
Analyze your data and customer buying habits. You can also revaluate industry benchmarks, check your progress in reducing your churn.
The most important point is to evaluate your targeting. Check whether the buyers’ personas are well-developed or not. Also, check whether sales representatives are using effective channels for targeting and whether they are trained for using the best practices.
In case your sales team is facing any difficulty with their activity objectives, then you need to analyze whether they have undertaken proper training to identify prospects using CRM or to practice the best techniques for phone-selling. If you find they lack the training, provide them with one!
How can Deskera Help you in your Business?
If you are looking for the best platforms that help in the designing and management of landing pages through your CRM software, Deskera CRM+ can come to your rescue!
Deskera CRM+ is a software that has a special segment devoted to landing pages. This section is designed in such a manner that it will help you walk through the process of creating, tracking, and optimizing your landing pages.
Deskera CRM+ comprises of pre-built landing page templates that you can use for best results. Not only this, but you can also create your landing page from the beginning. You will find both these options in the Deskera CRM+’s landing page module. In this way, you will be able to create fascinating and professional landing pages with effective CTA buttons that will aid you in the process of lead generation without any external help.
If you want to improve your business productivity, look no further than Deskera. Deskera CRM helps in simplifying the automation of your email marketing strategies. It is the best platform that can help you with contact and deal administration, sales pipeline management, email marketing campaigns, to name a few. Apart from this, you can also generate leads by creating email campaigns and viewing performance with detailed analytics on open rates and click-through rates (CTR).
Deskera CRM helps small businesses get more from each landing page you create. It lets you build and optimize landing pages that prompt you to improve conversions for your business and increase your sales and revenue. You can create good lead magnets to generate better responsive landing pages.
With Deskera All-in-One, you can make your business succeed. It is a platform that offers Invoicing, Accounting, Inventory, CRM, HR & Payroll all under one platform. With Deskera Books, you can understand important aspects of business including billing, payments, warehouse management, credit &debit notes, financial reports, etc.
So, why to delay? Choose Deskera and ensure the growth of your business!
- Sales goals refer to set objectives for your sales team that focus on specific sales KPIs.
- Customer churn refers to the number of customers who leave your business during a certain period. Monthly customer churn should be less than 1%.
- Reducing the customer acquisition cost can help to reduce cycle time and the risk posed by customer churn.
- A sales cycle is a series of events that happen during the selling of a product or service
- Having a win-rate sales goal helps in tracking the success of the company and contributes to its growth
- Customer lifetime value refers to the cash value a specific customer contributes to your company during the length of their subscription with you
- Having the right number of qualified leads can increase the probability of having a greater number of close deals.