Sales Team Targets for Next Level Performance

Sales targets should advance company goals. When they are set with the bigger picture in mind, they can align the interests of an organization, its teams, and constituent members.

11/25/2022

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Magdalena Ejsmont
Magdalena Ejsmont

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Sales Team Targets for Next Level Performance

Variable compensation is used to incentivize the desired behavior in alignment with company goals. Done properly, this ensures that the investment the company makes in incentive payments provides a suitable return.

Sales targets should advance company goals. When they are set up with the bigger picture in mind, they can align the interests of an organization, its teams, and constituent members.

When setting targets, a simple approach is to consider the overall goal, and then divide up that desired achievement amongst the relevant team members. 

However, relying exclusively on individual targets can discourage team members from sharing their knowledge and supporting each other. Individual targets may benefit some sales reps, but they might not be optimal for the company as a whole. We therefore recommend that you consider combining team and individual targets, to promote both individual excellence and collaboration within a team.

It is good practice to encourage the whole team to co-create the team targets. By doing so, you can ensure that each team member is familiar with the new company objectives and aware of how they can contribute to achieving these goals. When the whole team collectively sets targets, any uncertainties can be addressed and differences in priorities discussed. 

Once the team targets are set, they need to be broken into individual targets so that everyone knows their specific responsibilities.

Here are some example individual and team target strategies:

  Business Development Representative (BDR) Account Executive (AE)
Individual Target Component 80%
Based upon generation of Sales Qualified Leads
70%
Based upon new revenue
Team Target Component 20%
Based upon total number of Sales Qualified Leads generated by the team
30%
Based upon new revenue generated by the entire team
Purpose of Team Target Encourage BDRs to share knowledge on effective outreach strategies. Encourage AEs to support each other in managing complex sales processes, which should make the team more productive as a whole.

Team targets ensure that the whole team is working toward a shared goal– each team member can bring their own unique set of skills to the table and will be more willing to share their knowledge. This method builds an environment that encourages professional growth and skill development. Furthermore, as there is a common target, team members will more easily appreciate each other’s contributions. 

If you're looking for a way to improve collaboration in your team, promote knowledge-sharing, and increase trust: consider team targets. Properly aligned with your business goals, team targets may be just the solution you're looking for! 

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