Monthly Sales Targets May Be Flawed

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Monthly Sales Targets May Be Flawed

  1. 1. www.beyondtargets.com Monthly Sales Targets may be flawed
  2. 2. January 1st 8am As sales managers, we start our new sales year with the one goal; to achieve 100% of annual sales target. One hour later…… We’ve distributed our annual sales target between our 5 sales executives team and allocated monthly targets.
  3. 3. One hour later…… We now have 60 sales goals instead of one! spread across 5 sales executives and 12 months In just two hours we have managed to divide the simple team sales goal into 60 sub goals
  4. 4. One month later….. Ask your sales executives the following question; As of today, how much do you need to sell to achieve this months sales target?
  5. 5. Phew, they answered correctly. That’s a good sign anyway, isn’t it?
  6. 6. Now, ask your sales executives this next question; As of today, how much do you need to sell to achieve this years sales target?
  7. 7. As of today, how much do you need to sell to achieve this years sales target? Well, did they answer the question immediately without looking at a spreadsheet or sales report? Is this not the main goal for your sales executives?
  8. 8. Monthly sales targets may be flawed for the following reasons;
  9. 9.  When sales are slow, a sales executive has 12 monthly opportunities to fail instead of one annual opportunity to succeed. Imagine what this does to self confidence.
  10. 10.  When a monthly sales target is missed, the sales executive can reset the clock and start again next month, with the fools promise of making next months target. But that’s not the goal, the goal is to achieve
  11. 11.  Monthly sales targets are not aligned to the buying process. Why have monthly targets for sales that can take 6 months to close?
  12. 12.  Monthly sales targets really complicate commission structures. Were monthly sales targets introduced to coincide with payment of monthly commissions?
  13. 13. But most importantly, monthly sales targets hide the ONE clear goal, the ANNUAL sales target. This contributes to sales failure Check out “Unlock the power of your salesforce” by Bill Dettmer for more on
  14. 14. What’s the alternative to monthly sales targets?
  15. 15. Alternatively, you could put a system in place that measures sales progress based on the ANNUAL sales target, not monthly sales targets. Then test your new system by asking; As of today, how much do you www.beyondtargets.com need to sell to achieve this years

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