Setting attainable sales goals is the golden ticket to B2B sales success.
Sales is a demanding, fast-paced industry; setting goals can help SDRs build confidence, boost motivation, improve sales performance, and much more!
In this article, we spoke to the Head of Growth at NeonPixel, Ryan Reisert, for insights on how to set B2B sales goals and build a formidable sales engine.
Let’s go 👇
Sales goals are targets that sales reps use to plan their daily activities and make crucial decisions. They’re based on sales KPIs and metrics, the priorities of your business, and your desired growth and performance.
You can set sales objectives monthly, quarterly, or yearly. They provide direction, sales motivation, and accountability for reps.
Sales targets help SDRs understand what is expected of them so they can track their performance.
This accountability fosters a sense of ownership and responsibility among team members, increasing motivation and productivity.
Team members can focus on activities to help them achieve goals rather than wasting time on less impactful tasks.
This sense of direction helps streamline the sales process, leading to more efficient and effective sales strategies.
By establishing realistic and achievable targets, businesses can measure performance and track their progress towards goals.
This data allows companies to identify trends, analyse strategies, and make necessary adjustments to improve sales performance.
To establish realistic and achievable goals in sales, monitor these three things:
These variables help sales teams set targets that are challenging yet attainable.
The types of sales goals you get fall under two categories:
A stretch goal is an unachievable objective intentionally set above the usual standard. They’re high effort and never expected to be achieved one hundred per cent, but rather to inspire growth.
Assigning your B2B sales team stretch goals isn’t recommended as they can be overwhelming and lower morale. Instead, stick to SMART sales goals:
SMART goals are a great way to help you set realistic and measurable objectives for your team to achieve.
The acronym SMART stands for:
You should be clear when discussing your B2B sales goals for growing your business with your team.
For example, you could say, ‘We’re going to use a script-based sales strategy to help expand our outbound lead generation efforts and grow our customer base.’
Be clear about the revenue number you want your team to hit. Benchmark your sales performance against trackable key performance indicators.
Don’t set impossible goals. Look at your annual revenue over the last few years.
Then, set an attainable revenue goal you know will challenge your team but still be achievable.
Every goal must support your current sales strategy and business goals.
Suppose your company has only ever sold on LinkedIn, and now you want to expand to Facebook.
In that case, you shouldn’t aim to achieve the same monthly sales goals, whether it’s opportunities entering the pipeline or revenue generated from closed-won deals.
Each sales goal and objective needs an expected end date. This ensures your team works toward larger goals and growth, not just a single milestone.
Aim to set yearly, monthly and quarterly goals that align with each other.
Setting team sales goals comes with one rule:
Have one main revenue goal, supported by smaller actionable goals that help you to reach your sales target.
That’s it.
Remember that every business is different, and what works for one might not work for another.
Ryan said:
Here’s how we do it at Cognism:
We throw in incentives to motivate our sales team. And, of course, we strongly believe in using sales data to track lead generation metrics and monitor selling progress.
If we notice a drop, we focus on finding and solving the underlying cause.
Now let’s break it down:
If revenue is your ultimate goal, make it the benchmark you measure over everything else. Everything you do in B2B SaaS sales must relate to revenue. If something you’re doing isn’t helping you hit your revenue target, drop it.
This top-down sales approach shows you where you should focus your energies. Once you’ve determined your revenue target, you can determine which activities will help you achieve it.
Typically, these will be:
Underlying metrics must track every revenue-generating activity you engage in. These include:
These are the top-level sales metrics that you need to track.
Ryan said:
The old-school view of outbound sales is that it was an art - you had salespeople who engaged with leads and, through sheer force of personality, persuaded them to buy.
This approach just doesn’t cut it today. SaaS companies have transformed outbound sales into a science. You can calculate exactly how many sales reps you’ll need to hit your revenue goal - and this is the secret formula:
From this calculation, you can work out:
The next step is to put this together in a practical, repeatable way.
The capacity model is how you build the ideas from Steps 1-2 into a scalable, repeatable sales process.
Here’s how it works:
This is the science of predictable B2B sales.
We recommend this model if you’re a scaling B2B SaaS company. It allows you to accurately predict revenue, establish SMART sales goals, and successfully manage resources month-on-month.
Part of setting SMART goals for sales includes improving your team’s efficiency. You do this by:
Let’s break these points down:
Create an Ideal Customer Profile (ICP) for your business. This profile represents the perfect buyer for your product/service.
Once you’ve defined your ICP, use it to find decision-makers who exactly match that persona.
You’ll never achieve your sales targets if you can’t align sales and marketing. These teams must work together symbiotically, with marketing attracting and scoring leads for sales to action.
The number one thing you can do to drive alignment is to put both departments under the same umbrella. Instead of viewing them as two separate teams, view them as one super revenue team.
Use every tool in your marketing toolkit to nurture your leads until they’re ready to buy.
Start a blog, publish quality content for your ideal buyers, run paid ads and launch email marketing campaigns. Keep that pipeline full of warm and hot leads!
Select your metrics and track them every week. Measure everything to the smallest detail - number of dials, conversion rates, demos attended - the list goes on!
By tracking everything weekly, you’ll be able to spot errors in your sales process and fix them quickly.
There are a plethora of tools that can aid your sales team in their B2B prospecting quest. A word of advice, though - don’t implement tech for the sake of it.
When looking at providers, always ask yourself: What problem will this solve for my team? If it doesn’t resolve an issue, don’t buy it.
⚠️ See Cognism’s list of the best B2B sales software.
All this talk of processes, tech, and B2B data can lead us to forget the most crucial element: your people!
Achieving sales goals can’t happen without them. Ensure you don’t lose sight of your team when setting your sales goals and objectives.
Hiring the right SDRs is critical; providing them with clear progression opportunities and world-class training is also important.
If you can get the right salespeople, give them everything they need to succeed, and incentivise them to achieve their very best, then your sales operation will run like clockwork.
Meeting a revenue target is the number one goal of any successful B2B sales team and their managers.
But seeing your annual sales goal as one large number is overwhelming.
What you should do is this:
Break the annual revenue goal down into monthly sales targets. These can become individual or team goals. Only increase the targets once they’re reached.
Ryan said:
Your salespeople must prioritise their monthly sales revenue target over other goals.
Increase your month-on-month revenue by 10%.
The average sales cycle length depends on your industry and the deal size you want to bring in.
According to SaaS Metrics, the average sales cycle for a SaaS deal with an annual contract value of $25,000 should close within 90 days.
Ryan told us:
Shortening the sales cycle is a quarterly sales goal that most companies aim for.
One way to do this is to set up a funnel better suited to your sales targeting audience. This helps to make the sales process smoother and faster.
Reduce the cycle time of mid-market leads by 5%.
Every sales team needs a quality pipeline to achieve its lead-generation goals.
Quantity is also an issue - you need to keep it filled!
The more targeted leads you qualify, especially at the beginning of your sales funnel, the more deals you can close.
Ryan had a fantastic analogy for this:
Increase sales-qualified leads by 16% each month.
Working towards a specific win rate isn’t only great for determining which of your strategies are performing - it’s also great for your bottom line.
Remember that not every sales rep will have the same win rate or cold calling success rate. Some wins might be more significant due to factors outside your control.
With this in mind, are win rates still good sales goals?
The answer: yes, they are!
They keep your sales reps focused on their overall goal and can help you improve your sales funnel.
Ryan said:
Increase monthly win rates by 5%.
Your revenue target needs to work with your profit margins.
For instance, you might be hitting your revenue target one month, but if your team gave too many discounts the month before, your profit margins would need a boost.
To meet these sales goals, double-check that your pricing is fair by reviewing benchmark pricing against your competitors.
And cap the number of discounts your team is allowed to give out.
Increase annual profit margins by 10%.
When you first set sales goals, you’ll want to know how much it costs your company to onboard new customers.
And the lower the number, the better.
Ryan said:
Your CAC usually consists of:
The best thing to do is get a Revenue Operations Manager to determine what’s costing you the most. They’ll help streamline your processes and lower your CAC.
Lower customer acquisition cost by 9%.
This refers to the rate at which customers end their relationship with a company.
Understandably, you don’t want a high churn rate. Reducing churn must be a key sales goal within your sales strategy.
Ryan’s advice:
There are several types of churn to look out for:
Avoid churn in the first place and exceed sales goals by prospecting for leads that are the right fit for your product/service. Maintaining customer relationships is essential, even after they’ve signed the deal.
Reduce quarterly customer churn to 3%.
Retaining a customer is gold for any business. Loyal customers reward companies with:
Ryan said:
If you want to make customer retention part of your sales goals, then how you treat your customers matters.
Ensure your reps communicate, share valuable resources, and deal with issues and complaints as soon as they happen.
Improve customer retention by 15% by the end of the year.
The great thing about keeping your customers happy is that it leads to more opportunities, like upselling.
Ryan explained:
To achieve this sales goal, your team should look at your current customers’ intent data.
From your CRM, you should be able to track if they’ve investigated a new feature on your website. Then, it’s as easy as reaching out to them with your pitch.
Increase monthly upsells and cross-sells by 5%.
Your Customer Lifetime Value, or CLV, is the revenue a customer generates over a set period.
You want your CLV to be high, so you’ll need to invest in giving your customers more value over time.
To achieve this goal, you must update and improve your product. Avoid offering too many discounts, as this will only set you back when achieving sales goals.
This will also result in less pressure on net new business because you know these customers will be around for a while.
Increase CLV by 10% year on year.
A simple but effective sales goal.
If your reps take too long on calls or put too much effort into prep without booking meetings, you have a problem.
Knowing this issue means you can implement new training and refocus your reps on more valuable sales tasks.
Increase meetings booked by time to 50%.
How to set sales goals?
You can find the answer and skyrocket your strategy with these strategic sales goal examples.
Ryan’s key takeaway:
Cognism has assisted countless B2B companies in hitting their sales goals:
Click 👇 to book a demo and make missing sales targets a thing of the past.