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Setting Goals and Managing The Salesforce'S Performance

Sales goals are used to motivate and focus a salesforce on achieving key business objectives. Setting appropriate goals involves understanding the problems sales representatives face and determining the right mix of input- and output-based metrics to measure performance over time. Providing regular feedback also helps sales managers guide representatives toward their quotas.

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49 views

Setting Goals and Managing The Salesforce'S Performance

Sales goals are used to motivate and focus a salesforce on achieving key business objectives. Setting appropriate goals involves understanding the problems sales representatives face and determining the right mix of input- and output-based metrics to measure performance over time. Providing regular feedback also helps sales managers guide representatives toward their quotas.

Uploaded by

HEM BANSAL
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SETTING GOALS AND MANAGING THE SALESFORCE’S PERFORMANCE

“Working with members of the salesforce to achieve sales goals is a critical element of the
sales manager’s position,” says Febry, National Trade Marketing Manager for Miller Import
and Craft Beers. He also says, “When reps are having trouble achieving their goals, sales
managers need to find out what types of problems they are encountering and what they can
do”. A sales goal (quota) is a performance standard by which salespeople – sales
representatives and sales managers alike – are measured. The primary purpose of having
sales goals or quotas is to synchronize the direction and efforts of the sales force with plans
developed by a firm’s top management.

Sales goals serve a variety of purposes for the sales organization. Specifically, sales
goals help to -
 Motivate the sales force.
 Focus the selling efforts of the sales force: Direct the efforts of sales force towards
certain sales activities a company wants them to engage in.
 Assess the financial return on the firm’s investment in its products and services.
 Compare the results achieved by salespeople in different sales territories and
regions.

Goals are based on measures of performance that occur over time. They are often
described as being either input based (observable selling efforts a salesperson must take,
for example, no of sales calls made or no of new clients contacted) or output based (the
selling results a representative is expected to achieve, for example, no of orders a
representative must receive, revenue, etc.). Many companies would use a combination of
both input and output based goals in order to ensure that their sales representatives are
engaged in customer activities as well as meeting their output goals. In order to keep a
check on the expenses incurred during the sales process, companies also have an expense
quota in place.

Companies must work to determine the right mix of metrics to measure the
performance of salesforce. Along with the right mix of metrics, they need to decide on the
right time period to track. Some might argue that salespeople should be included in the
process of determining their sales quotas (known as bottom-up approach). Combination of
top-down and bottom-up approach with a little negotiation can help in reaching a goal that
both the sales representative and sales manager agree with.

Finally, giving their salespeople frequent and timely feedback about their progress
toward their goals can help a sales manager increase or redirect their efforts.

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