As a leader, it’s imperative to set clear motivational sales goals for your team. Not only will goals fire up your team members to do their best work, but your business isn’t likely to grow without carefully considered, well-defined goals for both the short and long term.
What does a great sales goal look like? At Mailshake, we work with and support growing sales teams every day, so we’ve compiled a list of 19 sales goals examples. We’ll also cover a refresher on SMART goal setting, the importance of each type of goal and what it takes to achieve them.
Sales goals are objectives to help you improve performance across your team. They are tied to specific business goals and sales KPIs. They may be revenue-related, tied to customer acquisition or other areas. These goals may be set by a collaboration between leadership, the finance team and sales management. Then it’s up to the sales team to work toward those goals.
Your team needs both long-term and short-term, broader scope and smaller scope goals to succeed and improve. It’s important that these goals are specific enough to put the whole team on the same page while still being realistic. To incentivize the team, a combination of long-term and short-term goals that can be met and rewarded frequently is usually a smart move.
If it makes sense for your team, you can also set stretch goals. Stretch goals go beyond your regular goals to motivate and push your team even further to do their best work. A stretch goal usually makes sense if your team is already exceeding its regular goals.
What’s the secret to successful sales goals? Setting SMART goals is one way to make your goals more effective.
A SMART goal uses the criteria of specific, measurable, attainable, relevant and time-based to provide clarity and guidance around the objective.
Here’s each element of a SMART goal explained:
Another way you can phrase a SMART goal is as follows:
Improve [goal] by [specific percentage] by [time frame] by doing [specific strategy].
Here’s a look at different examples of sales goals and how teams may approach them.
Revenue targets are all-important sales goals that most companies will have in place. You can set monthly, quarterly or annual sales revenue goals. While your team may have an overarching goal, breaking it down into smaller goals for individual reps can also help keep everyone on track.
The booking rate is important to help turn leads into customers. Focusing on booking successful meetings can help increase conversion rates. Do this by focusing on qualifying leads and optimizing your sales email invites.
To close more deals and increase profit margins, you can focus on both team and individual goals. You may need to focus on qualifying leads or better utilizing your CRM system; the right strategy will be tailored to your team’s specific needs. One example is allowing your sales team to chase more leads by taking some menial tasks off their plate through email automation or something similar.
ACV is the average revenue generated from a customer contract in one year. This is helpful especially if customers are on a subscription model to determine the average value from that customer in a year.
Capturing market share is a goal shared by startups and large enterprises alike. Focusing on sales and increasing revenue can help your business gain a larger percentage of the market.
Customer lifetime value (CLV) helps predict the amount of revenue a business will generate during the entire relationship with one customer. You can increase CLV by focusing on customer retention and increasing spending. It’s much easier to make money from an existing customer than to obtain a new one — for example, your team can focus on getting customers to upgrade their current deals.
Aimed at sales development representatives (SDRs), this individual goal of scheduling more demos will help maintain activity in your sales pipeline.
Increasing your number of qualified leads will keep your sales pipeline healthy and improve your chances of closing deals and increasing customer lifetime value. You can create goals for your sales reps around time spent prospecting and use sales tools that can help them nurture leads more effectively.
Gaining new customers is another common sales goal that may help your business stay competitive. You can improve your customer acquisition strategy in a number of ways, such as improving content marketing, targeted advertising and asking for referrals.
You can set a goal for your team to increase average deal size and increase order value. There are different ways you can go about this, such as improving your upselling and cross-selling efforts or finding ways to incentivize bigger purchases.
Reduce customer churn by setting a specific goal for your sales team. This could look like focusing on incentives, engaging with existing customers and improving lead-qualifying strategies. You can also work with your product development team to ensure you have a clear understanding of why account churn may occur and why specific products may not be a fit for certain customers. That way, you can better target customers who have a need for your product.
You can improve your email marketing strategy by personalizing your emails, segmenting your email list based on behavior, optimizing subject lines, optimizing for mobile and creating more dynamic content for your emails.
Create a goal to make a specific number of cold calls each day or week. To help motivate your team, set an incentive like a bonus or gift card or set up a sales contest for their outreach efforts. To open up time on their schedules, you can also set up sales automation tools to take care of smaller time-consuming tasks.
Customer acquisition cost (CAC) is the total cost required to obtain a new customer. To decrease this cost, you can find ways to better target your audience, improve customer retention and improve the sales funnel. You should examine where you are spending the most in the sales process and evaluate if you are targeting too many difficult-to-reach prospects. You can also find out which marketing channels your most valuable leads are coming from and focus on those.
There are a number of reasons why sales reps may not respond to messages from leads right away, like having little time and losing track of messages. To improve lead response times and ensure potential customers’ emails aren’t left unanswered, set a goal for your team on response times and work with them to make it possible.
Shortening the time to close will help your team close more deals quicker. You will first need to know how long your sales cycle is. Then, identifying inefficiencies in the sales cycle can help you choose where to focus your efforts on improving efficiency.
A net promoter score (NPS) is an indicator of customer satisfaction. An NPS survey, like the one below, asks people how likely they are to recommend your company to others. You can aim to increase your number of promoters or decrease detractors by improving the quality of your customer service.
Hold rate, or show rate, is your demo-booked-to-demo-attended ratio. Booking meetings with prospective leads is essential, but you need to make sure that those meetings are actually attended. You can focus on tactics like having sales reps set the meeting quickly, suggest times instead of leaving it up to the prospective lead and scheduling email reminders before the meeting starts.
Goals around sales prospecting like email response rates are important. You can set a goal for email responses to identify salespeople who need more training on prospecting or perhaps improve your outreach strategy. Ways to increase your open and response rates include optimizing your subject lines, personalizing emails and writing effective follow-ups.
Here are some tips to set goals, make a plan and track your team’s progress.
Set goals for individuals as well as overall teams. Base targets on data from the previous time period, then make an action plan.
Track your performance. Use your CRM or sales engagement platform to track your KPIs and monitor your team’s progress.
It’s a tricky balance between setting ambitious goals and keeping your team’s capacity in mind. You don’t want to overwhelm your team with too many lofty goals at once. But by setting well-thought-out SMART sales goals and putting an action plan in place, you’ll identify goals that your team feels confident in and can strive for.
Now that you’ve read through multiple sales goals examples, take the next step toward reaching your sales targets with Mailshake. Connect with more prospects, book more meetings and generate more sales with our simple yet powerful sales engagement platform.