Sales professionals, how do you approach goal setting in sales, and can you provide an example of a goal you've achieved?

Numerical sales goals should be specific and whenever possible measureable. They should be large enough to stretch you and create an accomplishment you can be proud of. Yet not so large that at some relatively-early point they’re likely to appear impossible, making it seem useless to keep trying. Still, as a consultant to hundreds of businesses of all sizes and thousands of salespeople of all types, I frequently see goals getting in the way of success. If they’re too high, they can be discouraging and after struggling for a while, people often simply give up. On the other hand, I’ve seen just as many people slack off because they’ve achieved their goal for today or this week or this month. In my experience, the yearly goal that works most consistently is simply the goal of doing to the best job you can possibly do during every minute of the working day: this day, this week, this month and this year. And after each day, each month and each year, you do a quick evaluation: “How could I have done that better?” So that’s a constant goal for me, one I never completely achieve. But shooting for it, I’ve reached any number of lesser goals. Selling Power magazine said, “To his powerful and famous clients, Barry Maher is simply the best sales trainer in the business. An author and a speaker, Barry, www.barrymaher.com, has appeared on the Today Show, NBC Nightly News, CNBC, and he’s frequently featured in publications like the New York Times, the Wall Street Journal, the London Times, Business Week and USA Today. His client list includes organizations like ABC, the American Management Association, AT&T, AstraZeneca, Blue Cross, Budget Rent a Car, Canon, Cessna, Fuji, Hewlett-Packard, Lufthansa Airlines, Merck, the National Lottery of Ireland, the Small Business Administration, the U.S. Army, the U.S. Government, Verizon and Wells Fargo. His books include No Lie: Truth is the Ultimate Sales Tool and Filling the Glass, which has been cited as “[One of] The Seven Essential Popular Business Books,” by Today’s Librarian along with books like The Seven Habits of Highly Effective People and The One Minute Manager. If you’d like to discuss this further, please feel free to contact me at any time. All the Very Best, Barry Maher Barry Maher & Associates Santa Barbara, CA Cell: 760-962-9872 barry@barrymaher.com www.motivationalpresenter.com

When we set goals, it's generally a two-step process. The first step is to set a bigger goal that we know cannot be achieved in a short amount of time. For example, 50% demo close rates. Then, we look at where we are right now and set smaller incremental goals. For us, we had a pretty high cost of sales conversions and our payback period was too long. we wanted to make changes that would reduce the payback period over the long term. We set an audacious goal of instant payback period on acquisition. We had a smaller goal of cutting it by 20% a quarter over the course of a year. The first thing we did was start tracking all relevant funnel metrics. Demo booking rate, show up rate, demo close rate, etc. Our demo close rate was average but our show up rate was low so we focused on improving the landing page and encouraging more people to attend through follow-up emails. Just increasing our landing page conversions from 2% - 3% reduced our acquisition costs and payback period by 33%. We didn't even need to touch anything else. When we combined it with a sequence to remind people to attend the demo, we were able to cut our payback period by half in less than 90 days. We blew beyond our short-term goals. Currently, we're trying other things to increase our average order value and optimize other aspects of our process to tease out incremental gains over time.

Setting goals for the desired output does only half the job. Achieving these goals by the end of the target period depends on whether the required input activities were performed during that time. By setting measurable goals for the required input activities, you encourage sales reps to exhibit better selling behavior. Focusing on the right input activities makes them more likely to meet their sales output goals. For example, you usually set output goals, such as the number of orders or the revenue generated. Additionally, you should set input goals, such as the number of product demos conducted, the number of customers met (virtually or in-person, depending on your sales process), and the percentage of leads converted into meetings. Just consider the activities you want them to perform and with what efficiency, and translate those into input goals. If you offer monetary incentives or bonuses to sales reps for meeting output goals, consider also rewarding them for achieving their input goals. Even if they miss their output targets this time, their consistent effort on input activities increases their chances of hitting those targets in the future.

At Rail Trip Strategies, our approach to goal setting in sales revolves significantly around the outcomes and success of our clients. We believe that aligning our objectives with the needs and successes of the agencies we partner with not only drives our growth but also solidifies our relationships with our clients. One clear example of a client-centric goal we set and achieved involved improving the ROI for a digital marketing agency specializing in the healthcare sector. Recognizing the challenges and high expectations within their niche, we set a goal to enhance their campaign performance by 20% over a six-month period. To achieve this, we first conducted a thorough analysis of their existing campaigns and identified key areas where enhancements could yield significant returns. We then tailored our lead generation strategies to better target healthcare providers who were most likely to engage with the agency’s services. This involved refining our messaging, optimizing our outreach channels, and implementing a more rigorous follow-up process to ensure maximum engagement. Additionally, we enhanced our reporting systems to provide the agency with more detailed insights into campaign performance, enabling them to make informed adjustments in real-time. This proactive feedback loop allowed for continuous refinement of strategies throughout the campaign lifecycle. By the end of the six-month period, not only had we achieved the goal of improving their campaign performance by 20%, but we had also helped the agency secure several long-term contracts with major healthcare providers, significantly boosting their portfolio and industry standing. This achievement underscored the effectiveness of setting goals that are deeply intertwined with client success. It’s a testament to our commitment at Rail Trip Strategies to not just meet, but exceed our clients’ expectations through strategic alignment and dedicated execution.

As the CEO of Hiring Indicators, I understand the critical importance of goal setting in sales. For sales professionals, goal setting is not just about aiming for targets but about creating a roadmap that drives performance and growth. At Hiring Indicators, we approach goal setting using competency assessments to ensure our sales teams are equipped with the skills they need to succeed. Initially, we conduct a comprehensive competency assessment to establish a benchmark for each sales professional. This assessment evaluates key sales-related competencies such as communication skills, negotiation tactics, customer relationship management, and problem-solving abilities. For example, one of our sales professionals might score highly in communication skills but show room for improvement in negotiation tactics. With this insight, we set specific, measurable, and achievable goals for improving their negotiation skills over the next quarter. This could include targeted training sessions, role-playing exercises, and mentorship opportunities. In summary, our approach to goal setting in sales at Hiring Indicators is rooted in competency assessments. By establishing a benchmark and continuously monitoring progress using competency assessments, we ensure our sales teams are developing the skills they need to achieve and exceed their targets.

At InReach CE, goal setting in sales is approached with a clear focus on measurable and achievable targets. I start by aligning my goals with the company's overall objectives, ensuring they are specific, measurable, attainable, relevant, and time-bound (SMART). For example, one of my recent goals was to increase our customer base by 20% within six months. To achieve this, I implemented targeted outreach strategies and leveraged our existing client success stories. As a result, I not only met but exceeded the goal, achieving a 25% increase in our customer base, which significantly contributed to our revenue growth. Attribution: Eli Pilowsky, Sales Professional at InReach CE

We've established a tiered goal structure that includes individual and team-based objectives. Our sales representatives are encouraged to set personal quotas for lead generation, conversion rates, and average order value while working collaboratively to achieve collective market share, customer retention, and revenue growth targets. To further incentivize this dual approach, we've implemented a dynamic compensation model that rewards both individual and team-based achievements. High-performing sales professionals earn attractive commissions and bonuses and gain access to exclusive training programs and leadership development initiatives. A specific example of a goal we've achieved through this comprehensive approach is the successful launch of our custom cabinet design service. Our sales team worked closely with our engineering and design departments to develop a user-friendly online tool that allows customers to customize their kitchen layouts and cabinet specifications. This initiative resulted in a 20% increase in average order value and strengthened our position as a trusted partner in the home improvement space.

I approach goal setting using the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound. Last quarter, I set a goal to increase our client base by 15% within three months. By breaking it down into weekly targets and tracking progress, we surpassed the goal, achieving a 20% increase. This structured approach kept the team focused and motivated.

In sales, I approach goal setting by first establishing clear, specific, and measurable objectives. Breaking down larger goals into smaller, actionable steps helps create a roadmap for success. For example, at Leap, we set a goal to increase our monthly recurring revenue (MRR) by 20% over six months. We broke this down into weekly targets, focusing on acquiring a specific number of new clients and upselling to existing ones. By tracking progress regularly and adjusting strategies as needed, we were able to stay on course. We implemented targeted outreach campaigns and improved our follow-up processes. As a result, not only did we achieve our goal, but we also surpassed it, increasing our MRR by 25% within the timeframe. This structured approach to goal setting has been crucial in driving consistent sales performance and growth.

As the owner of a self-storage facility, I set goals that are clear, doable, and aligned with what the business and customers need. For example, last year, we aimed to increase occupancy by 25% in the first quarter. I set a personal goal to hit a 10% increase, focused on key marketing strategies, tailored promotions, did weekly progress check-ins, and used CRM tools to manage leads. By the end of the quarter, I exceeded my goal with a 15% increase in occupancy, helping us hit our target and grow our business.

As in every other area of ​​life, having defined and measurable sales goals is critical to success. As an account manager, I always make sure my goals are SMART. For example, a few months ago my company launched a new product on the market. I set up a specific goal for my team: sell 125 units of this product by the end of May. This goal was Specific because we focused on a specific product and Measurable because the target was 125 units. I always make sure the goals are Attainable, so I have some meetings with my teammates to get their feedback. And of course, it was Revelant for my company and Time-Bound, because we set a specific deadline. If you don't have a goal-setting strategy in sales, everything is more confusing and complicated. Focus on these criteria, and your professional life will be much easier!