Establishing sales objectives is crucial for business expansion and enhancement, yet not all goals hold equal weight. Although setting a goal is straightforward, selecting effective ones requires a more profound comprehension. Explore the various types of sales objectives and discover how to tailor them to your company’s needs. Subscribe to Revenue Weekly for more insights, tips, and statistics directly to your inbox.
Sales objectives are defined targets for your sales team, often centered around specific key performance indicators (KPIs) or objectives and key results (OKRs) aligned with overarching company goals. The process of setting these goals can involve your executive leadership, finance department, sales department, or a combination of these.
Regardless of who sets them, it is the responsibility of the sales team to transform broader goals into achievable objectives. When establishing sales objectives, keep in mind:
– Reflect the company’s objectives: Ensure your sales goals align with your company’s mission and values.
– Collaborate with marketing: A 38% higher sales rate can be achieved when sales and marketing teams work together.
– Utilize available resources: Make sure your goals are attainable, considering your current technology, finances, and human resources.
Sales objectives should be SMART goals: specific, measurable, attainable, relevant, and time-bound. They can also be short-term or long-term, qualitative or quantitative, and outcome-oriented or process-oriented.
Long-term objectives address broader goals for the sales team, project, or company, while short-term objectives are milestones that contribute to these long-term goals. Break down long-term objectives into smaller, more manageable goals for quicker and consistent progress.
Qualitative goals are subjective, while quantitative goals are data-driven. Both are valuable and can be measured, such as through direct traffic, social engagement, and website traffic numbers for brand awareness.
Long-term and short-term goals should be outcome-oriented, with process-oriented goals for the short term. For instance, a long-term goal might be to increase sales by 30% by the new year, while a short-term goal could be to boost sales team productivity by 20%.
To set effective sales goals, follow these steps:
1. Evaluate your sales cycle.
2. Establish what is attainable.
3. Set milestone objectives.
4. Monitor your progress.
Understand your current position using sales cycle reports, which provide hard data on cycle length, losses, closing ratio, and conversion rates. Analyze this data to identify areas for improvement and develop relevant sales goals.
Set realistic goals based on historical growth rates and market potential. Ensure you have the necessary resources to achieve these goals, including a skilled sales team and financial backing.
Divide larger goals into smaller objectives for better tracking and morale. Regularly review progress and make adjustments as needed. Effective sales goals drive business growth and require a deep understanding of your sales process and historical data.
For assistance with this process, consider WebFX’s sales enablement consulting services. We can evaluate your sales process, identify improvement areas, and help level up your sales tech stack. Contact us online or call at 888-601-5359 for more information!
