Do you have a process for connecting your targeting process with setting sales goals?
Once you’ve established a targeting process and identified your ideal targets, it’s important to ensure that your targets are tied to sales goals.
You’ll need to build a goal-setting and compensation plan that focuses the team on generating and working appropriate and ideal targets.
Here are a few areas to keep in mind.
Establish Territory Potential
When you can identify your ideal targets, you should be able to measure how many of them are available in the overall market, as well as in individual sales territories.
Remember to gather this information as you are establishing your targets. If there’s not enough potential, you’ll need to broaden the range you are targeting.
And when you have the numbers, keep them in mind as you are setting sales goals.
What’s a reasonable amount of growth that you can expect each month, quarter, and year? It will likely be different in each of your territories based on their maturity.
Develop Inbound Goals
Setting sales goals is one thing, but you can also incorporate your targeting process into your marketing goals.
Work with marketing to set goals for how many inbound leads they will generate and nurture. Your sales team should help – they might provide ideas and feedback on content that will appeal to your ideal targets.
Consider measuring both the number of qualified inbound leads are generated as well as the percentage of inbound leads that are qualified. Both will help you evaluate the effectiveness of your inbound approach.
If the number of qualified inbound leads goes from 100 per month to 150 per month, that can look great. But if over the same time, unqualified inbound leads went from 200 to 500, you might have a problem with your inbound strategy. That’s a change from 33% to 23% qualified.
A dip in the percentage of qualified leads doesn’t always mean you have the wrong approach. It’s impossible to develop an inbound lead system that doesn’t capture some unqualified leads. But it may be worth looking at the inbound strategy to see if there are specific approaches that aren’t driving the right leads. You can then modify or eliminate those initiatives.
Compensate Ideal Lead Generation
If you want to ensure your sales team is focused on generating the right kind of leads, tie it to their compensation.
Explore tying commission plans to the number or percentage of ideal leads generated or using MBOs (Management by Objective).
(Want to learn more about MBOs? Check out our eBook!)
When you are setting sales goals tied to ideal leads, make sure to consider a reasonable number of leads salespeople can generate.
This will be related to the territory expectations as well as the sales team’s workload.
And don’t forget to ensure that your sales team’s daily activity is focused on the right kinds of leads.
Revise Targets and Goals
Over time, review performance and results in order to revise both your ideal targets and your goals.
As I've mentioned in my previous post with best practices for better targeting, your ideal targets will change over time. Develop reports and processes to help you know when you’re exhausting the potential list of leads.
Track lead generation volume, and if it starts to drop, see if it’s a result of low activity or if the market is slowing. This creates an opportunity to review and revise your target to address any new markets or other opportunities.
When you revise your ideal targets, make sure to adjust sales goals. If you are entering a completely new territory or market, you’ll need to set reasonable expectations for what sales and marketing will be able to generate.
Every time you develop targets and goals you’ll get better and more precise.
What other tips do you have for incorporating your targeting process when you are setting sales goals?
Share your ideas in the comments!