Setting goals and managing the sales Force’s Performance

Without a plan, it's hard to tell where you may end up. Because the success of businesses

hinges on the successful sales of products and services, nearly all organizations with sales

forces use sales goals. The primary purpose of having sales goals, or quotas, is to synchro

nize the direction and efforts of the sales force with the plans developed by a firm's top

managers. Keeping the efforts and activities of the sales force aligned with the firm's

marketing strategies helps ensure that the firm's sales resources are being spent wisely

In addition, it allows for comparisons to be made between different sales territories and

sales personnel. The results of these comparisons can then be used to determine where the

company's biggest opportunities and challenges may lie.

Different types of factors can be used to set sales goals. Input factors are the efforts a sales

person is expected to make to develop relationships with customers, meet with them, and make

presentations and proposals to them. Output factors are the results of what a firm expects a rep

resentative's sales efforts to yield. They include metrics such as the amount of and profitability

of sales. Many organizations utilize a combination of input and output goals to ensure that their

sales representatives are engaging in customer service activities as well as meeting their output

goals. Expense goals are used to motivate sales representatives to keep their selling costs to a

reasonable amount. Finding the correct combination of goals and not overwhelming sales rep-

resentatives with too many types of goals can be a challenging task for sales managers

The majority of organizations tie the performance of their salespeople to the com

pensation they receive, which is frequently based on the percentage of their goals

they achieve. To help obtain their commitment to meeting their goals, sales representatives

are often encouraged to provide their sales managers with input about their goals and

the obstacles they face to meeting them. A firm should adjust its sales goals only as

needed so as not to confuse or demoralize the company's sales representatives (especially

if their goals are being increased). However, over half of sales organizations indicate

they usually make at least one adjustment a year. Many people mistakenly believe that

if representatives fail to achieve their goals, they are typically dismissed. Most sales

experts and professionals agree, however, that the failure to meet a goal merely signals

a sales manager or sales trainer to help diagnose and remedy a salesperson's selling

weaknesses.
Sales goals should motivate a firm's sales force. They should be difficult, yet achiev

able. When they are too difficult, salespeople are more likely to behave unethically to

achieve them. By contrast, when salespeople understand why their goals have been set the

way they are and they are committed to them, their efforts and perseverance increase.

Finally, giving their salespeople frequent and timely feedback about their progress toward

their goals can help a sales manager increase or redirect their efforts.