NAVIGATING THE UPS AND DOWNS OF SALES TARGETS: A BALANCED APPROACH
In the rollercoaster ride of sales, achieving targets can sometimes feel like an uphill battle. As a sales leader, your strategy in managing these targets can significantly impact your team's motivation and performance. Let's dive into the art of target setting and explore when to reduce or increase those goals.
Reducing Targets:
Sales professionals can find themselves in the challenging situation of consistently missing a sales target. Prolonged periods of unmet targets can lead to frustration and declining motivation. In such cases, it's essential to reassess your approach.
Why Reduce Targets?
The constant pursuit of an unattainable number can drain a salesperson's motivation. They might stop believing in their ability to achieve it. To reignite their drive, consider temporarily removing or reducing the revenue target.
Instead, shift the focus to activity-based targets. These could include metrics such as call numbers, reconnecting with past clients, and expanding their network on platforms like LinkedIn. Engage your sales team in the decision-making process by involving them in setting Key Performance Indicators (KPI’s) related to these activities.
This transition from monetary to activity-based targets can lead to a win-win situation; increased motivation plus the ability to maintain a productive, enthusiastic workforce.
Increasing Targets:
Conversely, when a salesperson consistently achieves their sales goals, it's a sign that it might be time to consider raising the bar. However, this process must be approached thoughtfully.
Why Increase Targets?
Achieving targets consistently is commendable, but it's essential to make sure the new targets are both attainable and incentivised. Take market conditions and changes into account when setting the new benchmarks but most importantly, involve your sales team in the process.
If they perceive the new targets as merely more work without a proportional increase in commission or bonuses (what’s in it for them?), they might resist the changes. Striking the right balance is crucial to motivate your team to aim higher and achieve more.
Whether you're reducing or increasing sales targets, open and honest conversations with your sales team are the linchpin of success. Understanding their perspective, adapting your approach to their unique personalities, and maintaining a win-win atmosphere are paramount.
The journey of managing sales targets is a dynamic one, filled with highs and lows. By knowing when to adjust these targets, you can lead your sales team towards sustainable success. So, remember, it's not just about the destination but the strategy and communication along the way that truly matters.