How to Set Targets at the End of the Year

It’s that time again

With most financial years re-setting on 1 Jan it is essential that you think about sales target-setting prior to the end of this year

For anyone that has not planned out their targets as yet, there is still a window to apply a principle-based approach so that you can kick off the new year with everyone knowing what they are aiming for.

Setting sales targets is an important part of ensuring that your sales team is motivated and focused on achieving their goals. Here are some steps to help you set sales targets at the end of the year:

Step 1: Reflect on the Past Year

Before you can set sales targets for the upcoming year, it's important to reflect on the past year. Take some time to review your sales team's progress over the past year. What worked well? What didn't work so well? What were your biggest accomplishments? What were your biggest challenges?

Step 2: Choose Your Focus

Once you've reflected on the past year, it's time to choose your focus for the upcoming year. It's important to choose a focus that's achievable and measurable. Many experts recommend starting with how you want the result to be and visualizing where you want to be in a year.

Step 3: Create SMART Targets

When setting sales targets, it's important to create SMART targets. This means that your targets should be specific, measurable, achievable, focused on results, and have a deadline

For example, instead of setting a target to "increase sales," set a target to "increase sales by 10% each quarter." This target is specific, measurable, achievable, results-focused, and time-bound.

Step 4: Regularly Measure Your Targets

Once you've set your targets, it's important to regularly measure your progress towards them. This will help you stay on track and make adjustments as needed. You can use tools like CRM software to measure your sales team's progress and other metrics.

Step 5: Adjust Your Targets as Needed

As you work towards your targets, it's important to be flexible and adjust them as needed. If you find that a target is too difficult or not achievable, adjust it. If you find that you've achieved a target sooner than expected, set a new target to keep yourself motivated

The key is that there is a sensible starting point and some form of validation process. If you start with a top-down exercise ie the long-range plan of the business, then once you have divided that appropriately you need to validate with a bottom-up exercise to ensure that these targets are doable in the current market conditions.

Conversely, if you start with a bottom- up exercise, then you need to validate that process with a top-down look at whether the consolidated targets would get you where you need to be as a business.

Broadly though, you should be looking at;

• Who needs to be targeted

• What does the business need to achieve?

• What opportunity is there in the marketplace

Basic tenets of good target setting to consider;

Have Centralised Principles

the same basic approach for everyone, with a rationale that can be explained

Have Good Communication

ensure that you have included the right people in the exercise so that you end up with sensible numbers that are aligned across the stakeholders. Further, ensuring that the actual targets are rolled out in a considered way and that the approach, and the targets themselves, are properly documented

Be Realistic

the targets must be related to the opportunities in the market and supported by a marketing plan

Target What Can Be Achieved

you can’t target everything, only target elements that an individual can control/influence

 Targeting is not an exact science 

- there is no one way that is right for every organisation but you can follow some basic principles to achieve the most optimal solution

Setting sales targets at the end of the year can help you stay focused and motivated, and ensure that you're making progress towards your goals. By following these steps, you can set achievable and measurable targets for your sales team and make progress towards long-term success.

Optimise can support your organisation in all of these areas. Feel free to have a no-obligation call to chat about your own challenges, book HERE

Enter your details to receive a copy of our FREE ebook - Building Your Sales Organisation ENTER