Establish your key metrics. More steps go into a sale than just the close at the end. Other steps, depending on your sales process, can include cold-calling, setting appointments, site visits, call-backs and more. Each step in the process should be considered when setting performance goals.
Review past performance. For each key metric, look back at how your staff has performed historically. Analyze your top, bottom and middle producers. Factor in variables specific to your market, such as seasonal demand and other market fluctuations.
Analyze the potential for performance increase. Does your sales staff have enough tools and support to reach its goals? Is your market saturated? Can your back office, support staff and suppliers keep up with your goals?
Keep it real. Unobtainable goals may cause a short term increase in results. But in the long run, nobody likes to lose. Goals that cannot be reached will eventually serve to de-motivate your staff and create a culture of negativity.
Start low. If your goals are too low and therefore too easily obtainable, you can always raise them. But if they are too high, you will be forced to lower them. This sends a negative message that condones under-performance.
Offer incentives. Even if your sales staff is already on a commission plan, extra incentives can help them reach their goal. Use your imagination. Incentives don’t always have to cost you money.