How to Create Sales Goals

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How to Create Sales Goals

Create Sales Goals that match the focus of the overall business.

Or maybe create sales goals that motivate the sales function using their earning potential.

What about shareholders?

How about if you’ve got to also consider stake holders as well as shareholders in the business?

Will their needs always be the same?

Can you create sales goals and reward systems that satisfy both?

How about your customers?

Should the sales goals reflect their needs?

A good product/service for a good price with good customer service (good is a minimum standard here)

But what happens to the longevity of the customer relationship if the sales goal is based on margin?

Or on turnover?

Or are both of those ok, if customer retention or NPS is built in?

What about when the bonus is just paid on new business and not on account retention development?


Think about the bigger picture for just one minute, how about if your business is all about building loyalty and maximising customer retention and ensuring you get the biggest chunk/all of your customers budget?

Yet your sales goals and sales reward mechanism is all about rewarding the number of customer accounts every month…potentially driving behaviors to generate lots of tiny deals.

What happens then?

Think of the impact on sales acquisition costs and the money lost in processing millions of mini deals, having to make hundreds of thousands of deals instead of one big deal that rolls on…it’s easy to see how the sales team behaviours, the business needs and the sales goals are all in conflict with each other.

A sales goal that supports loyalty and commitment from buyers and works for buyers, the business and the sales function…is it too much to ask?

So what factors should make up a good sales goal?

Shouldn’t all sales bonus schemes take into consideration some factor for size of deal, minimum order value, average order value, margin, sales potential, sales acquisition cost?

Either way, we can agree that to create sales goals, you need to wear lots of hats, satisfy many agendas, make money, maximise efficiency, get the biggest ROI on business resources and ensure your customers get treated fairly.

Big ask?


How to Create Sales Goals

Look at the agendas and needs of the specific direct and indirect stake holders and shareholders in the business

Build a matrix of the common areas of aligned goals and common areas of conflicting or misaligned goals.

Look at the areas of misaligned goals and seek to gain goal alignment, where there is value. Where there is no value or the marginal gain is just that, abandon this goal alignment.

Acid test wearing each of the hats.

It’s a simple process.

Not an easy process, but a simple one, managing expectations and really understanding what keeps people interested in doing business with your business, whether they are employees, investors, customers, owners…yet

Why do so Many Business Reward Mechanisms Fail to Deliver?

Just to be clear…I’m talking about sales quantity and sales quality…including turnover, profit and customer loyalty. After all, these are, arguably, the three cornerstones of most thriving/surviving businesses.

Failure is primarily because most sales directors and business owners tasked to create sales goals focus on the on target earnings (OTE) of the sales team.

They want the good news story…

It’s a great line to throw out at an interview that ‘you get 10% of everything you sell’

How much sexier is that line compared to….’you get 15% of everything you sell as long as your average order value is £x, your NPS is 7.8+, your average sales acquisition cost is less than y% of the order value, and your average rolling margin remains above z% for every rolling three month period’

Which bonus structure would you rather be on if you were the sales guy?

But which package gives the greatest level of discipline in the sales team?

Which sales goal package gives total freedom to the sales function to sign whatever business they want because there is self management and accountability built into the sales goal?

NOT having a more business aligned set of goals for the sales team causes a plethora of problems.

The biggest one being that sales functions often forget that they are there to feed the business and allow the business to make profit.

Closing business at any cost becomes the norm in some firms.

And business owners and managers can’t really blame anyone other than the guy in the mirror.

Create sales goals that foster the right behaviors, the right activities and have built in self correcting performance levers.

Treat the sales team like grown-ups to self manage based on their own accountability and understanding.

Create Sales Goals to Build Sales Leadership in Every Target Carrying Sales Exec

Irresponsible selling means competitor growth depressed margin and running to stay still.

Eliminate the race to the bottom. 

Get the reward framework aligned with business goals.

Give full accountability to the sales team with interconnecting sales goals.

Use the sales goals to manage the sales team behaviours.

Coach to the desired behaviours using the results because that’s what they are there for.

It’s worth it!

Now you can stay up to date with the latest free digest of sales improvement and business development insights.

The The Advanced Business Achiever is perfect for sales team briefings, daily sales huddles and in house b2b sales training.

Create sales goals that feed the business, for a confidential chat about any of the above – contact Carol on or call 0779 002 1885

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