Mar 22, 2023
As a business owner or sales manager, you know that setting goals is an essential part of growing your business. Without clear and measurable objectives, it can be difficult to track progress and ensure that your team is working towards a shared vision. However, to truly maximize sales, simply setting general goals is not enough. Every sales representative has unique strengths and weaknesses, and as a consequence, setting specific goals for each one of them is crucial to tailor your coaching and training efforts to their individual needs and achieving optimal results. In this article, we'll explore how to set better goals by providing some examples, in order to maximize sales.
Before we dive into how to set better goals, let's first review why goal setting is so important. First and foremost, goals provide a sense of direction and purpose for your team. When everyone knows what they're working towards, they're more likely to stay focused and motivated. Goals also help to prioritize tasks and ensure that everyone is working towards the same objective.
Additionally, setting goals allows you to measure progress and track success. When you set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound), it's easy to determine whether or not you're meeting them. This helps you make data-driven decisions and adjust your strategies as needed.
Nevertheless, as stated above, it is extremely important to set goals tailored to each individual. What if person X is better at generating new business, while person Y is better at getting repeat business? If you set the same goals for everyone - or don’t go beyond setting a revenue target for each sales rep, you will end up having negative consequences for your business. Here are 5 examples of goals you could set:
1) Reduce customer churn rate: The goal here would be to decrease the number of customers who stop doing business with the company over a given period of time. By reducing it, you can improve customer retention and loyalty, which in turn can lead to increased revenue and profitability. (You can download here our whitepaper for free to learn more about how to achieve this).
Example: "Reduce customer churn rate by 10% in the next 6 months by implementing a proactive customer retention program that includes regular follow-ups, personalized offers, and improved customer service."
2) Increase customer lifetime value (CLV): The goal of increasing CLV or LTV is to increase the total amount of revenue a customer generates for a company throughout their entire relationship with the business (learn more by reading this blog article). This can be achieved through various strategies such as improving customer experience, offering personalized recommendations and promotions, cross-selling and upselling, and providing exceptional customer service.
Example: "Increase customer lifetime value by 15% within the next 12 months by implementing a loyalty program that offers tailored recommendations and offers."
3) Decrease customer acquisition cost (CAC): The goal of decreasing CAC is to reduce the cost incurred by a company in acquiring new customers (including advertising costs, sales commissions, and other related expenses). By reducing it, you will be able to increase profitability and ROI and generate more revenue from each customer.
Example: "Reduce customer acquisition cost by 20% in the next 6 months by optimizing the sales process, implementing an effective lead generation and prospecting strategy, and identifying cost-effective marketing channels."
4) Increase lead conversion rate and reduce time: The goal here would be to improve the efficiency and effectiveness of the sales process by converting more leads into paying customers in a shorter amount of time. This can be achieved through various strategies such as implementing effective lead nurturing campaigns, improving sales techniques and skills, and utilizing sales automation tools and technologies.
Example: "Increase lead conversion rate by 25% and reduce the sales cycle time by 30% within the next 6 months by using sales and marketing automation tools."
5) Increase the average order value (AOV): The goal: increase the revenue generated from each customer transaction by encouraging customers to spend more money per purchase. By increasing the AOV, you can increase revenue and profitability without necessarily increasing the number of customers.
Example: "Increase the average order value by 15% within the next 6 months by implementing a cross-selling and upselling program, offering bundling discounts, and improving the product presentation on the website."
But, how can you get to have a clear understanding of each sales representative's strengths and weaknesses? By having a portfolio overview of each one of them and tracking their performance over time. This way, you can equally spot patterns and trends in their historical sales performance, and identify areas where a sales representative may need additional support or training. Besides, by tracking their performance over time, you can also identify the most effective strategies and techniques that are helping your sales representatives succeed.
In short, you will be able to make data-driven decisions and be more effective when it comes to goal setting. The Harvard Business Review reports that companies that use data-driven sales coaching methods achieve a 16.7% increase in annual revenue compared to those that use traditional coaching methods.
In the Fructifi online console, we offer this data to:
You can access the customer portfolio of each of your sales representatives with the total number of customers by churn status and clusters, as well as the total revenue earned by this representative and the average LTV per client. Even better, you can monitor the number of new customers vs. returning customers by period, per sales rep. With this data, you will be able to set personalized and specific goals, which will lead to increased productivity, higher levels of engagement, and improved sales results! All without spending any time doing tedious extractions in Excel!
Contact us to know more!