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Topics Covered: <a href='/resources/search/?query=Sales Management'>Sales Management</a>
Sales Strategy
Feb 16, 2018 | Canadian Professional Sales Association lock

Many, if not most, sales roles involve personal KPIs and revenue targets. The reasons for this are numerous - including increased transparency and accountability. Some sales teams, however, offer hybrid personal and team targets or team-only sales targets. In this CPSA article, we’ll explore the benefits of team-wide sales goals and how, in the right situations, they can help take your company to new heights in revenue generation.

Before we continue, it is important to address the elephant in the room: the possibility that one or more of your sales team simply doesn’t ‘pull their weight’. If you’ve got sales pros in your team who consistently underperform due to presenteeism or other causes team targets might not be the best scenario to bring more out of your salespeople. That said, if you do have those underperformers in your sales teams, then perhaps it is time for a bigger conversions with them to identify and address the causes of problems.

With that said, let’s now consider some top reasons why team targets can be the right solution for your sales team.

Customer Service

Most forms of inside sales in 2018 involves social selling. At the heart of social selling is a customer service-style approach. This means educating ans supporting your clients along their buyer journey. Team targets mean that the leader of your happy sales team can recognize and utilize the individual strengths of each team member to the collect benefit of your customers and prospects. For example, team targets mean that the sales team leader can afford to delegate more hours on the phone or in meetings to those in the team he or she knows have strong people skills. Other salespeople in the team who are perhaps, for example, stronger using social selling tools for in-writing sales efforts (e.g. prospecting with LinkedIn inmails) or better at recording conversations in the company CRM could have more hours allocated to those duties.The trick here is ensuring that, ultimately targets are met regardless of who does what.

Collective Accountability

Team targets mean that all members of your sales team are ‘on the hook’ when things go wrong and rewarded when targets are hit. This clear and collective accountability model can help to focus frontline salespeople on the big picture.

Avoid Negative Competition

One of the great things about collective sales targets is that they can prevent negative competition between sales staff. By having all team members ‘rowing in the same direction’ - without any need to encroach on colleagues’ sales pipelines in order to meet individual KPIs - your sales team can enjoy a happier and more transparent work environment.

Stronger Team Culture

If you’re a member of a sales team with collective targets, you’re much more likely to feel part of the bigger picture. Working with your sales manager and other sales team members to jointly hit sales goals can be a boon to fostering a strong team work culture.

The Role of the Sales Leader

The key to successful team targets is having a strong sales team leader in place. Great sales managers of teams with team targets are able to inspire their employees, can recognise individual’s strengths and shape a collective sales effort which hits goals. The very best leaders can also spot those underperforming team members and find ways to bring them back into the fold.

Conclusion

Although individual performance measures are often prefered, some companies can really benefit from team-based commission plans. Team sales targets are tricky to navigate but if you get it right, team-based incentives can offer greater collaboration, enhance alignment with your organization’s high-level sales objectives and create a winning sales team mentality.

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