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    A realistic approach to goal setting in b2b sales

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    Let’s start with a statistic: quota attainment in B2B sales is currently around 60%. Unfortunately, this is nothing new. On the contrary, it has been status quo for the last number of years. Yet despite the 40% failure rate, we continue with the same quota expectations and the same goal setting practices year after year after year - somehow expecting a different result. How about trying something different in 2015?

    Quota attainment is still very poor in complex b2b sales. But are we realistic about this? Can your people really be expected to succeed? It may be time to think differently.

    Is there a magical formula that will solve all our problems?

    I’m afraid not. However, before you start assigning monetary targets and activity metrics, first consider the one finite resource for your team: time.

    Your sales people only have so many hours available in a day. It’s actually less than you think. Even after you’ve accounted for vacation, public holidays and sick days, studies show that B2B sales people spend as much as 35% of their time on non-sales related activities.

    "Despite the 40% failure rate, we continue with the same quota expectations and the same goal setting practices year after year after year - somehow expecting a different result. How about trying something different?"
    Fredrik Jonsson

    Given the “net” sales time available, can you realistically expect your sales people to reach their targets? Put it this way: you’ll likely know your sales cycle length, but do you know how many hours it takes a sales person to complete all activities required to close a deal? What about the number of hours they’ll spend on the deals that do not close?

    However, non-sales time and opportunity management are not the only variables you need to consider here. Unless you have a dedicated prospecting team, your sales people must spend a sizeable chunk of their time converting leads into opportunities to ensure a healthy pipeline. Despite the possibilities offered by social media platforms, B2B prospecting still takes time. Once the research has been completed, just getting hold of the right person may take 10 or more contact attempts.

    How much of their effective time will they need to dedicate towards prospecting? Have you accounted for this in your goal setting?

    Create meaningful metrics - help your sales people prioritize

    Once you have a better understanding of time, you’ll need to apply metrics that actually help your sales people focus on doing the right things while providing the data you need to produce reliable forecasts. Easier said than done. Particularly when we stare ourselves blind at activity levels and efficiency KPI’s – do more things faster and the results will come! - without applying goals for expected conversion rates and metrics focused on effectiveness.

    What win rate do you expect to see from your sales people? Do they know what average deal size and sales cycle length to strive for? How many prospects must they contact on a weekly basis to get there? Your sales and prospecting goals are intrinsically linked, so make sure they are not measured in isolation from one another.

    How to set smarter, more realistic metrics today?

    To get you started on the right foot in 2015, we have put together a Realistic Goal Setting kit that is now available for free download. Here you will find:

    • Our whitepaper with goal setting recommendations and best practices
    • A tool that easily allows you to calculate realistic sales goals in light of the net available sales time for your team
    • A complete overview of the key metrics for your individual sales people

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    Fredrik Jonsson
    Published December 3, 2014
    By Fredrik Jonsson

    You know people that get excited about things like pomodoros and timeboxing strategies? Fredrik is one of them. He's also a former freelance writer and subsequently a man of many words. Words used to help companies take action on better ways to increase sales effectivenes. Fredrik is our Chief Content Officer at Membrain, the world's first sales software helping companies move from merely having a sales strategy towards executing it on a daily basis.

    Find out more about Fredrik Jonsson on LinkedIn