Sismai Roman Vazquez stresses that there is a major difference between setting sales objectives and setting successful sales objectives. Successful sales objectives are both achievable and effective in aiding a company’s growth. A lot of sales objectives fail because they do not consider the direction of the company, or they are not realistic. Many professional sales reps blur the lines between sales quotas and sale objectives. Quotas simply provide a target number of sales or revenue whereas objectives are typically broader in scope. Instead of hitting a certain number of sales, a sales objective may be to increase their average deal size by 15 percent over the next three months.
Sismai Roman Vazquez on The Necessity of Sales Objectives
Setting up effective sales objectives is important for a few different reasons. For starters, a sales objective can provide a sales rep with a clear idea of where their manager wants to see them improve. Providing honest feedback is critical to any rep’s growth. As a sales rep starts to improve and reaches their sales objective, a new objective can be set that helps strengthen another weakness in their sales arsenal. Because direction is clearly provided in an objective, a sales rep can’t help but be held accountable. Quotas often stunt growth because a sales rep will just do whatever amount of work it takes them to reach their goal. A sales objective that tracks how many meetings they schedule or how many phone calls are made can do a better job of tracking effort. If realistic objectives are set and the sales rep fails to meet them, it is much easier to have a disciplinary discussion. A strong sales rep will be motivated by their objective, and it will help them reach their full potential.
Sismai Roman Vazquez on Different Types of Sales Objectives
As alluded to previously, not all sales objectives are focused on sales. However, sometimes a sales focused objective is what a rep needs. For instance, if it is taking a rep much longer than their peers to close a deal, a strong objective would be to shorten their sales cycle by a certain percentage. Another great form of sales objective is the objective that focuses on productivity. Productivity objectives can cover everything from the number of cold calls made to number of continuing education classes attended. The most difficult type of sales objective, according to Sismai Roman Vazquez, is the buyer-focused objectives. These objectives require the actions of a third party, so it is not as easily judged. Examples of buyer-focused objectives include increasing the average customer’s lifetime value or lowering customer acquisition cost.
Now that sales objectives are understood, Sismai Roman Vazquez believes all sales managers should understand how important it is to make sales objectives a part of the routine of their sales team. Providing constant reminders about a rep’s objectives and providing a clear timeframe is vital. There can be incentives for hitting a goal, but almost all sales objectives will lead to greater sales numbers, which ultimately helps overall commission rates.