Sales Expectations Vs. Goals


Expectations vs. GoalsSales goals are carrots created by salespeople and organization that everyone strives to meet. Typically goals are set higher than expectations.

Expectations are a list of measurable criteria and behavior policies creating a basic performance benchmark.

Goals and Expectations are unique from each other, they are not the same.

Expectations

One of the best actions an organization can take to is to create a clear list of basic sales expectations.
This list should include the following:

  • Sales revenue
  • Start and Stop date to achieve revenue
  • Record keeping practices
  • Marketing actions
    • Calling
    • Partner development
    • Meetings
    • Sales presentations.

By implementing expectations everyone in the sales group has a clear benchmark of performance. Because sales management can be a fire drill new hires are often left to wonder. “Am I falling short, meeting, or exceeding expectations?”  Your list of expectation will allow them to see for themselves how they measure up.

Goals

Goal setting is an action for salespeople to look internally, placing the “bar” higher than the company expectations. Salespeople should set their goals so that they move well beyond basic company expectations. In addition to setting individual salesperson goals every sales group should develop an overall sales goal. Management needs to view goals as upside and expectations as must have levels of performance.

Company budgets should work off of expectations!

This means that you should never set goals and expectations at the same level. I look at expectations as my “Good Enough” watermark. When a salesperson meets expectations they earn the right to stay on the team! When a salesperson achieves their goal they receive a bonus.

When setting quotas (budgets) should you look at expectations or goals?

The only quota that matters to salespeople is the one they carry around in their head. This is the one which holds the amount of money and recognition they want to achieve in their own lives and is completely independent from anything the company publishes.

I find a good policy is to set sales quotas at your “Good enough” expectation level and then implement a commission plan that highly rewards salespeople that help your service bureau achieve the overall sales goals. Here is an example for a retail salesperson (50 and under employees focus.)

Sales Quota:

  • 120,000 Annual payroll sales
  • Quarterly quota 30 – 45K depending on quarter
  • Base Salary + XX% annual payroll revenue

Sales Goals  Bonus considerations: Quarterly Bonus Considerations

  • $100 for every  five opportunities developed by one business partner
  • $250 bonus for every $5000.00 sold above quarterly quota
  • $500 for adding five work comp clients
  • $500 for adding 10 HRanswerlink clients
  • $50 dollars for each demonstration hosted in our office

In developing a sales bonus program look beyond revenue and bring in overall business goals. The more services you deliver to customers the more likely it is they will not leave your service bureau. So, you should tie your sales expectations and bonus structure to drive sales habits which deliver more than just payroll business.

In summary expectations will keep everyone on task and leave no mistake as to who needs to “up” their game. Goals guide your team past expectations helping salespeople reach their full potential. Sales budgets should be set according to your service bureaus expectations with bonus gates/programs clearly defined rewarding salespeople that perform at a high level and deliver on company sales goals.

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One Response

  1. I agree with your comment regarding “Goal setting is an action for salespeople to look internally, placing the “bar” higher than the company expectations. Salespeople should set their goals so that they move well beyond basic company expectations.”

    I am also passionate about sales and post comments at http://www.mackpowers.com Thanks for the great advice and we should consider trading links. Would you be interested in posting on my blog?

    Thanks,

    Mack Powers

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