Setting Goals and Managing Sales Performance

1. Mr. Vivek Bindra Director - Global ACT www.vivekbindra.com www.globalact.org.in Setting Goals and Managing Sales Performance

2. What Being a Sales Manager Means?? • Meet/exceed sales quota! • Develop your team!

3. What’s Involved with Goal Setting? Monitoring Salespeople Market Conditions Competitor Reactions Following Up Instituting Corrective Actions

4. Why Set Sales Goals (Quotas)? • Sales goal (quota):performance standard by which salespeople are measured • Sales goals are useful for several reasons • Synchronize direction and efforts of sales force with plans developed by top managers • Benchmark performance • Achievement of goals can be motivating and is usually tied to compensation

5. Global Sales Management:Goals Can Vary • Most people agree on the big picture, but their implementation of sales management practices reflects nuances unique to their home cultures • Some researchers believe that globalization is causing sales management practices to converge • There are still variations • Short-term goals in US • Long-term goals in Japan • “God willing” in Middle East

6. Input-Based Goals Output-Based Goals • Relate to the observable selling efforts a salesperson must make • Number of sales calls • Number of presentations • Number of proposals • Number of new clients contacted • Ensure the reps are performing core selling activities • Selling results a rep is expected to achieve • Number of orders received • Revenue generated • Sales volumes • Profits Different Types of Goals

7. What About “Almost” Meeting a Goal? • “All-or-Nothing” approach vs. • Reward for reaching part of a goal • 90% threshold goal • 100% actual goal • 110% stretch goal

8. Should Salespeople Be Involved in Setting Their Own Goals? Many firms solicit input from sales force about the goals finally set for them Helps improve rep morale because managers better understand obstacles Disadvantage: reps have incentive to “lowball” goals

9. Reasons for Not Reaching Sales Goals • Flawed sales projections based on limited marketing research • Changes in marketing mix variables resulting in inferior products or services • Increase in cost of supplies passed on to buyers via higher product prices • Promotional campaigns don’t produce projected results • Delays or other problems with distribution of products • New competitors and competing products entering marketplace • Environmental factors affect customer demand and cause customers to postpone or cancel their purchases • Change in laws and regulations preventing or restricting use of products and services or making them more expensive • Changes in the way firms do business, for example, as a result of new technology

10. S pecific M easurable A chievable, yet challenging R ealistic T ime-based Setting “Smart Goals” SMART format for establishing goals:

11. 1 Set goals that are easy for sales representatives to understand, a reasonable challenge to achieve and have clear deadlines for completion 2 Important tasks not included as a goal may get ignored; if it’s important, then set a goal for its accomplishment 3 Having too many goals can create stress, keep the number of goals to a reasonable number; clarify importance for prioritization 4 Get your sales reps to commit (“buy in”) to their goals by explaining how they have been set and involve Practical Guidelines for Setting Goals

12. 5 Clearly indicate how the sales performance will be measured and rewarded 6 Provide feedback as frequently as possible; encourage reps to use alternative approaches to sell if initial approaches don’t work 7 Make sure people know you have confidence in their ability to achieve their goals 8 Failing to achieve a goal should not be viewed as a “total failure,” since it should be considered progress on the road to success Practical Guidelines for Setting Goals

13. www.vivekbindra.com Daily Motivation For Your Peak Performance https://www.facebook.com/DailyMotivationByVivekBindra

14. Thank You