How do I set a target for my sales person?

It is surprising how many companies do not set targets for their sales team – if you’re team have nothing to aim for then there is no way of benchmarking what success looks like.

Creating a sales target for your sales people that is fair yet challenging can prove a tough task for many a tech business.

A target 10% too high and it can de-motivate the team and create a negative ‘failure culture’, 10% too low and your team may stagnate, leaving them firmly within their comfort zone.

Points you should consider when setting a sales target;

  • Ensure your targets align with the growth plans set for the business.
  • What On Target Earning (OTE) does your sales person expect, and what do you want to offer? – is this reflected from the commission structure and their set targets?
  • What is the target going to be based on? Revenue? GP? Number of Units sold?
  • What are your competitors sales teams doing? How does your target compare?
  • Can you deliver your product/service to your customers if your team all hit 120% of their sales target?
  • Is it actually possible for the sales team to achieve their given target? How many sales will need to be completed on a daily/weekly basis for the sales person to hit target ? (based on the average sale size)
  • Do the financial targets match the output of the activity generated from your set KPI’s?

Remember; targets are there to be hit and should be set accordingly.

They should inspire and motivate, be achievable yet challenging, and get the best out of the team in order to create a thriving ‘success culture’ and ultimately grow your business.

If you would like to discuss setting sales targets in more detail, contact Incrementa, the Technology Sales Consultancy or email [email protected].