Sales reps have to be provided with clear indication of the kind of performance that’s expected from them. And, it is actually the main reason of defining sales targets for your sales team members. As a sales director or manager, you have to make sure that the targets for each sales rep are closely aligned with the company goals.
You should be able to tell your sales reps how many prospecting calls they have to make, how many appointments they will be expected to go and how much to sell. Looking at your business and identifying the factors driving profitability should help you drive sales targets. Remember that clear and tangible sales targets will lead to sales people pursuing excellence and accurate measuring of their progress along the way.
Defining the right sales targets for sales reps could help you measure how effective each member of your sales team is. It could also could get you to better understand your sales people, and what actions you have to take so they become top performers. Therefore, the point of defining sales targets for your reps is setting goals around identified improvement areas in order to support them in becoming better.
Sales reps targets will work better if they are linked to incentives such as commissions and bonuses. And, the right managing of these is substantial. I want to widely recommend a commission tracking software: Blitz. It integrates into your CRM solution, where Finance and Human Resources departments can also work together with you to define the business rules that govern commission plans, and easily implement them with automated calculation processes.