Sales Targets - Setting performance target KPIs - Sales Metrics

Sales Target

Measure and compare current sales to a target or past performance.

Guide to Sales KPIs & Metrics

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Formula

New wins MTD vs quota MTD or wins previous MTD

Services

HubSpot Dashboard | HubSpot logo Infusionsoft Dashboard | Infusionsoft Logo Pipedrive Dashboard | Pipedrive logo Salesforce Dashboard | Salesforce logo

Role

C-Level, Manager, VP / Director

Overview - Sales Targets

The Sales Target KPI measures current sales revenue and compares that to a target or past performance. The sales target can be set as either a monetary value, number of units sold, or number of accounts. Monitoring sales performance against targets is a core tenet of any sales management strategy and is instrumental in creating a data-driven culture.

One of the keys of setting a sales target is ensuring it’s visible to the entire team. Designing an effective sales target visual can have a huge impact. For example, a bullet chart captures current performance, past performance, and target in a single visual. Once trained on using this visual, your team will be able to instantly tell how sales are performing.

Sales Target Attainment Formula

(Sales for the current period/Sales target)x100

Who uses sales targets?

Executives, Sales Directors, Sales Managers, Sales Reps

Key terms

  • Wins: The number of new customers over a certain time period.
  • Revenue: Income received through sales activities.

Key indicators for sales targets

  • Surpassing a sales target or the previous period's value.
  • Revenue: Income received through sales activities.

How to calculate Sales Targets

The Harvard Business Review writes, “When 10%–20% of salespeople miss goals, the problem might be the salespeople. But when most salespeople miss, the problem is their goals.”

This highlights the importance of setting accurate yet challenging sales targets. It’s a delicate balance that requires accounting for business goals, past performance, and the performance of your individual sales reps. Setting sales targets and getting them right can have a massive impact on your team, and motivate reps to dig deep to close more deals.

You need to consider a number of factors in setting sales goals, and account for specific targets like whether you’re going to increase new business, expand existing accounts, or work with past customers. Beyond that, sales targets should influence the structure of incentives for the team such as our commission and compensation model. For more information on setting sales goals, check out this in-depth piece from Close.io.

How to monitor sales performance against targets

Achieving sales targets requires active monitoring of your performance throughout the day, week, and month. Sales targets ought to be dynamic and focused on short term performance. The more individual reps can see and understand how his or her work contributes to the target, the more motivated they will be to achieve those targets.

One of the best ways to monitor sales performance against targets is to use a Sales Leaderboard and displaying it on a television. Consider also setting up a Salesforce dashbord

Sales Targets - Monitor performance with a leaderboard