What’s the right target for your sales people?

Today I have another example from a coaching session for you: a divisional manager has the challenge of defining goals for his sales representatives and account managers and justifying them accordingly. Find out in VLOG how to build the right framework using the practical example with a description of the initial situation.

...we have the situation that the client had been very successful last year by producing €1.3 million of license revenues of a particular platform...

Hello everybody. The other day I had a coaching session with a client where we talked about what the right sales target, the objective in Euros or Dollars should be for a sales representative or an account manager in the software solutions business.

And as well know every target is normally too high for a salesperson and there are a lot of discussions that might go on. I would like to give you a few hints on what a realistic target should be in the software solutions business based on that story. Now we have the situation that the client had been very successful last year by producing €1.3 million of license revenues of a particular platform.

And with this platform, the client would also sell services in terms of integration and testing customisation and so on. Now the 1.3 million they had generated and now they have two sales representatives who are supposed to do I think 1.5 or 2 million each.

Now big protesting of the salespeople who thought that this was much too much yeah much too much. Do we say this? I hope so. And I don’t believe so because in this particular case we had a big market, a leading product of which my client was a platinum partner. So a very good basis and existing clients.

Yeah, so you’ve got existing clients. Now the first thing is you’ve got, let’s say, you’ve got basic, you’ve got existing business or previous business with existing clients. So there’s always the possibility to sell more to these existing clients in terms of licenses.

Then on top of that, you’ve got the possibility to sell services and additional solutions for example and based on the reference, it is much easier to find new clients because you’ve got the reference, you’ve got a big market, you’ve got a great status and that’s why there is no real reason why not to be able as a software solutions sales guy to make 1.5 to €2 million per annum, yeah?

So, if you are head of sales or a unit manager and you deal with people in this area, there’s not so much to discuss. On the other hand, one caveat, don’t leave the salespeople alone when trying to find new clients. Support them with digital sales, for example, automatic lead generation via, towards LinkedIn.

I would highly recommend that because if you prepare the sales process by putting a lot of leads into the funnel so that your salespeople get enough first meeting because that’s the major hurdle that they have to overcome, get this first meeting. Then there’s no reason why they should not do this. You see, I’ve also been in situations where the market was saturated, the product was too old and there was no innovation and by no means, my company was a platinum partner of anybody.

So in this situation very, very difficult, but if you’ve got such a good basis you’ve got references, yeah and you’ve got a real booming market, 1.5 to 2 million Euros or Dollars is perfectly possible. That was my advice for you as heads of sales and maybe also an input for the salespeople to give you a realistic view on what you might expect.

If you’ve got similar challenges in your sales organisation, feel free to book a free planning session with me by clicking on the button underneath this video.

I would be happy to exchange my points of view with yours and see what we can do. This was Armin Rau from Armin L Rau opening doors, making you grow. And I am looking forward to speaking with you.