Did you meet your sales quota last quarter? And what about last year? Did you meet your annual sales quota?
If you’re reading this, it’s likely because you’re not quite meeting your sales quota. Maybe you’re just slightly off each quarter. Or maybe you’re missing it by a mile. Whatever the case, there is hope for you!
This article is for salespeople that are tired of missing quota. It’s also for sales managers and VPs that are looking for ideas on how to coach and help their salespeople towards making quota.
Let’s get to it.
How to Meet (and Exceed!) Your Sales Quota
There are many factors that come into play when it comes to sales quotas. There are the goals themselves, the plan to achieve those goals, and all the small factors in between.
So, let’s approach this in a linear fashion.
You’re in sales. Your sales manager or VP assigns you a sales quota. Now let’s say that quota is a quarterly goal to bring in $36,000 in business. And let’s say that you’re in the service business—say, property damage restoration. So, on the low end, the minimum job cost is $3,500 for a basic water damage clean up. And, on the high end, a big job–like a fire damage or large catastrophe–is around $80,000.
Now, let’s break this up into steps.
Step 1. Understand what you’re selling.
What options are available? Are you selling multiple products or services? What variables exist that will impact the dollar amount?
For the above example, a sales rep would need to determine the types of jobs they’ll offer to potential referral sources. Are they asking insurance agents to refer them fires and large catastrophes only? Or are they a full-service business that covers the whole gamut of water, fire, mold, and biohazard restoration?
Understanding your options and potential up-sell opportunities is crucial.
Step 2. Understand costs and revenue.
Once you know what you’re selling, it’s important to understand all you can about costs and revenue. If you’re selling variable services—like consulting or construction services—then you’ll need to factor this into your plan.
For example, in the property damage restoration example I gave above, jobs ranged from an average of $3,500 to $80,000. Now I’m sure you’re thinking, “If I was that rep, I’d shoot for all fires and big catastrophes, that way I’d certainly meet my sales quota every quarter!” And yes, of course that makes sense. And there are businesses that have designed their model around these types of jobs. But typically, restoration companies are full service. This means that they handle a variety of property losses—not just the big ones.
The point is: with your manager, decide how you’ll get to this goal. Perhaps you will be the fire and big catastrophe rep. And perhaps another rep will focus on water damage and mold jobs. On the other hand, perhaps all the reps in your company are aiming for any type of job. Whatever the case might be, sit down with your sales manager and talk it out.
Understand your options and the possibilities that exist for you. This will make it simple to view your role as a salesperson in a logical way.
Step 3. Create a plan.
You know what you’re selling and all the potential factors at play. Now it’s time to create a plan on how you’ll meet your sales quota.
First, begin by creating a prospecting action plan. To learn more, check out this article on How to Create a Sales Prospecting Action Plan. Your prospecting action plan will help to guide you to meet your sales quota.
Once you’ve put your plan together, it’s time to create a time management strategy to make sure you achieve said plan. We highly recommend using a time blocking method. Create a time block will ensure that you actually get done what you set out to get done.
Step 4. Execute the plan. Rinse. And Repeat.
Now that you’ve got the steps, it’s time to execute! While all of the above might seem daunting, it’s all necessary if you want to achieve your goals. Once you’ve gotten through your first quarter with this new plan in place, take a look back. Take a look at what worked and what didn’t.
Here are some examples:
- Did you feel like you were constantly talking to the wrong people (i.e. NOT the decision maker)? This means you need to adjust who you’re targeting. It’s time to re-evaluate lead sources.
- Were you targeting the right people, but had difficulty getting them to refer? Try focusing on relationship building and solving problems for your prospects.
- Did you receive referrals from your prospects, but they were for jobs or products outside your wheelhouse? Focus on messaging and value proposition.
The goal here is to reflect and take a hard look at each area. Be honest with yourself and determine where any breakdowns exist. Then, talk with your sales manager and your sales team, and head to your Sales PlayBook to work on improving your processes.