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A fresh year brings in fresh opportunities and great chances to up your sales game, the question is, are you prepared?
As sellers, we try our best to sell maximum accounts. Not just sellers, ask any business their idea for the new year, and the answer is inevitable: close more deals and make it big.
With buyer behavior and preferences changing each passing year, these pose a major challenge to the sales and marketing team as well.
Setting actionable sales objectives for 2023 will put you at the forefront of your business by pushing these trends into the customers’ and our lives.
Setting sales goals and objectives can be tricky if you are always trying to catch up with your competitors and not laying out unique goals for your team in 2023.
What are Sales Objectives?
Sales objectives are the results of an organization’s annual sales, or revenue contributed by its sales representatives. Good sales objectives should be clearly defined to help the sales rep to identify their actions/tasks to complete before they reach their goal.
In simple words, sales objectives are broad goals that are broken into small, actionable chunks to help sales representatives achieve their goals.
Remember, sales objectives are not the same as sales metrics.
Tracking the right metrics or KPIs will be an integral part of setting sales objectives to track your goals. To set up great sales objectives, go beyond just desired results and include the measures that were taken by you to get there.
But, how do you set actionable sales objectives for 2023?
12 Sales Objectives to Stay Behind in 2023 for Maximum ROI
Sales objectives are far more than just ticking the checklist. They can be extremely valuable in setting up goals for your team and even individual performance.
Here are 12 sales objectives you must track in 2023 to kickstart your goals -
- Qualified Leads
- Analyze your Existing Sales Funnel
- Sales Cycle Time to Finish a Sale
- Increase in Annual Contract Value
- Profit Margins to Improve the Overall Sales Objectives
- Focus on Social Selling
- Overall Revenue
- Win/Conversion Rate
- Customer Acquisition Cost (CAC)
- Aim for Lower Churn Rates
- Understanding the Market Reach
- Focus More on the Product
#1 Qualified Leads
Each organization has its own strategy to define its qualified leads. They are broadly classified into marketing-qualified leads (MQLs) and sales-qualified leads (SQLs) to push the lead further into the sales funnel.
To push your sales team’s goals, and to meet your revenue criteria, it is imperative to have a good chunk of quality leads in the pipeline. Unfortunately, not all leads pushed out by the marketing team provides any value to the sales team.
Only 27% of the leads that B2B marketers pass on to the sales team are good.
To improve the overall performance of your company, you need to increase your leads.
This can be easily achieved by embracing technology to help you qualify leads such as switching to CRMs, having effective lead generation campaigns, refining your lead qualification criteria and sales process, and so on.
#2 Analyze your Existing Sales Funnel
One of the most common sales mistakes in the industry is, sales representatives do not revise their existing sales process.
As the industry and buying behavior is drastically changing year after year, it only makes sense your sales team improvises your existing sales process as well.
Following age-old sales practices to meet your objectives, will not only keep you behind in your game but also push you much further away from your competitors.
When revising your current sales objectives, ensure to go through them carefully and assess your sales team’s performance.
Jot down areas of improvement, and why and how you stayed behind your goals. Keep this as your baseline and revise the sales process to make it easier to up your sales game.
#3 Sales Cycle Time to Finish a Sale
An average sales cycle lasts 102 days for B2B companies.
A sales cycle by definition is the amount of time taken from the moment a sales representative makes contact with their lead to close that particular deal.
The longer your sales cycle is, the longer it takes to close down on your goals. The sales cycle should be simple and must have minimum roadblocks and the best way to do this is by refining your prospecting techniques.
Recognize the barriers in your current sales cycle and work on a plan to avoid this in the coming year. Start asking for more referrals from your current database.
The sales team should also spend quality time on farming and hunting quality sales leads to improve them and cut down on time, eventually.
Automate recurring and smaller tasks to avoid human errors, and make it easy to always stay on top of a promising prospect.
#4 Increase in Annual Contract Value
Most B2B businesses use subscription-based price models, and it is important to use the annual contract value to set targets and commissions.
The annual contract value is the average revenue generated from each customer contract, excluding fees.
Aim to get a higher annual contract value to improve the overall revenue of your organization and the sales rep responsible for the sale.
#5 Profit Margins to Improve the Overall Sales Objectives
Profit margin is nothing but the amount of profit earned by a business, essentially dividing income by revenues.
Or, profit margins suggest how many cents of profit have been generated for each dollar of sale.
A good profit margin is considered as a 10% net profit margin is considered average, 5% is poor, and a 20% profit margin is considered as high.
To achieve a 20% profit margin, your company must include this in its sales objectives to achieve this goal.
For instance, every sales rep is expected to perform well and reduce the number of discounts provided to customers. Try coming up with different price bundles for various features, or other strategies to find ways to cut down on the costs of selling, and eventually, increase the profit margins.
#6 Focus on Social Selling
Although most businesses have an elaborate social selling plan, revamping the approach is always a good sales objective to have.
For businesses that don’t have a social selling strategy in place yet, it’s high time to jump in the mix to avoid losing business to your competitors.
The sales world isn’t the same as in 1997 anymore.
Getting quality leads, and extracting information about them has become much easier. Leverage social media platforms such as LinkedIn to know who your prospect is and understand if they are the right fit.
Build your credibility on social media platforms to establish better connections with your prospects. Jot down a plan to target your prospect and make that initial connection with them.
Social media will prove to be a powerful platform for businesses of all sizes to help them achieve their sales goals.
#7 Overall Revenue
Revenue is nothing but the total amount of money gained from the sale of goods and services by a company.
With 60% of sales reps meeting their quota, and on average, a small business generates revenue anywhere between $380,000 to $40,775,000, this number can be improved with a strategy in place for sales acceleration.
Be transparent when letting your team members know of their expectations. The amount of increase in the overall revenue should be evenly distributed across your team so everyone is aware of their share.
The best possible way to achieve this goal is to increase the number of customers and also, increase the size of each sale to a customer to achieve the same results.
#8 Win/Conversion Rate
Conversion rate refers to the percentage of prospects that converted into full-paying customers.
Calculating Win Rate will help will help you predict your average revenue targets, giving you a leeway to manage your budgets and costs in advance.
If you get around 150 leads per month and convert 30 of them, then you have a conversion rate of 20%.
Understanding your monthly conversion rate will also affect your team’s performance directly. If your conversion rate is increasing incrementally per month while closing the same or greater amount of deals, then your sales team is improving.
However, if your monthly rates are dropping, then you can conclude that your current sales strategy needs a revamp.
#9 Customer Acquisition Cost (CAC)
New customer acquisition can cost up to 7 times more than selling to existing customers, while the likelihood of selling to new customers is merely around 5-20%, whereas selling to existing customers is between 60-70%.
When businesses fail to retain an existing customer, it not only means your sales team will have to work harder to fill the gap, but it also speaks about your product as a brand.
Ergo, to cut down sales-related costs, you need to decrease customer acquisition costs and set this as one of your sales objectives.
Although customer retention sounds hard, it isn’t rocket science. Establish timely contact with them, provide excellent customer support, and finally, find ways to keep them happy to reduce overall customer acquisition costs.
#10 Aim for Lower Churn Rates
In simple words, churn rate is defined as the rate at which your existing customers do not retain your service, or stop doing business with you.
High churn rates are expensive to your business in more ways than one. High levels of churn mean continuous struggle and anxiety about pushing new customers into your business.
Satisfied customers are not only guaranteed not to cancel their subscription but, McKinsey also found that happy customers are also willing to upgrade their existing plans.
Providing excellent customer support should be your primary goal. Extending and maintaining a good customer relationship should be beyond closing a deal as well. Help your customers genuinely when they have an issue, and liaise with other departments to provide the best experience to your customers to lower the churn rate.
#11 Understanding the Market Reach
Having a thorough understanding of the market and your competitors should be one of the core sales objectives for your sales teams.
The target market coverage will determine the number of hires, total budget, or time allocated for sales calls.
For instance, if your company’s goal is to increase customer reach by 20%, you either need to upskill your existing tech stack or hire more people to help you achieve the goal.
Onboarding technology that supports your sales and marketing objectives to minimize recurring tasks, and eradicate manual tasks such as CRMs, sales intelligence platforms like Salesken to analyze and track sales funnels, qualify better leads, receive real-time cues, and more.
#12 Focus More on the Product
Focusing more on products helps your sales leader determine the effectiveness of your indirect sales reps in selling products.
Keeping your product as the core of your sales pitch will help you foresee and craft better selling strategies. This not only helps customers visualize the benefits of using your product but also helps your team to sell better.
A product is made especially to suit a client’s pain points that makes clients want to enjoy premium features and get the maximum benefit out of it, as opposed to selling just the features that will not help you because it is perceived as a factor of budget.
Examples of Sales Objectives
Sales objectives vary for every industry. Setting attainable sales objectives for any aspect of sales to help your sales team improve on their game and work toward individual and company-wide goals.
Here are a few examples of sales objectives -
- Spend a minimum of one hour each day hunting to find good leads
- Reduce sales cycle time by switching to an automated email service
- Increase win rates by 15% in Q3
- Bring in an average of 11% of revenue each month
- Limit the number of discounts given to new customers
- Reduce customer churn by 12% next quarter
- Improve customer retention by at least 20% in Q1
- Switch to intelligence sales technology tools like Salesken to improve overall profit margins, upsell, and understand customers better
- Decrease CAC by at least 8% next quarter
Why are Setting Sales Objectives Important?
Setting actionable sales objectives can help your sales team be motivated and perform to the best of their abilities.
Not just that, sales objectives are also used by your company’s management to amplify the vision and goals they have set for the company and your sales team as well.
Sales objectives do not have to be overly complicated. An easy-to-achieve sales objective also acts as a roadmap to achieve your company’s goals. Ensure that each objective comprises specific, actionable, and measurable team-wide goals that can be achieved without much hassle.
The process of creating these sales objectives can be easy by leveraging technology like Salesken and using your existing team member’s skills can help you achieve them.
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