The Crucial Difference Between Sales Quotas & Sales Goals
Understanding the distinction between sales goals and sales quotas is crucial for any sales professional aiming for success. Though often used interchangeably, these terms signify different aspects of sales performance. I’ll dive into these differences and provide practical strategies to help you set and exceed your sales targets.
Understanding Sales Quotas
Sales quotas are targets set by the organization as part of its business plan. These quotas represent the minimum amount of sales necessary to achieve the company’s revenue goals. Essentially, a sales quota is a baseline—a non-negotiable figure that the company depends on for its survival and growth. Meeting these quotas ensures that the organization runs smoothly, but should meeting quotas be the ultimate goal for a sales professional?
Why Quotas Aren’t Enough
While meeting sales quotas is essential, aiming solely to meet them can limit your potential. Quotas are designed to ensure that the business meets its operational needs, but they don’t necessarily reflect your personal potential or ambition. This is where the concept of sales goals comes into play.
Setting Personal Sales Goals
Sales goals should be set by you, the sales professional. These goals represent your personal benchmarks for success and should always exceed the company’s quotas. Setting higher personal goals allows you to stretch your capabilities and achieve more than the minimum required.
For example, if your company sets a quota of selling 10 homes a month, your personal goal might be to sell 15. This approach not only helps you exceed expectations but also fosters a mindset geared toward continuous improvement and higher achievement.
The Power of Stretch Goals
Stretch goals are ambitious targets set above your basic sales goals. They push you to explore your full potential and encourage a growth mindset. However, setting stretch goals isn’t just about picking a higher number; it involves strategic planning and a deep understanding of the behaviors that lead to sales.
Focusing on Sales Behaviors
A sale is the result of specific actions and behaviors. Instead of simply aiming to sell more, focus on the daily activities that drive sales. Ask yourself, “What behaviors do I need to perform consistently to achieve my stretch goals?” These might include:
- Prospecting: Increase your efforts in finding new leads.
- Follow-ups: Enhance the frequency and quality of your follow-ups with potential clients.
- Client Engagement: Invest more time in understanding client needs and building relationships.
By setting behavioral goals, you create a clear path to achieving your sales targets. For instance, if your stretch goal is to sell five additional homes this month, break it down into daily tasks: more prospecting calls, additional client meetings, or enhanced follow-up efforts.
Mindset Matters
Your mindset plays a crucial role in achieving your sales goals. Start each week with a positive and proactive attitude. Visualize success and set a non-negotiable minimum sales expectation for yourself. For many top sales professionals, not making a sale in a week is unacceptable. Cultivate the same level of determination and drive.
Run Your Own Sales Contests
Don’t wait for your company to incentivize you. Create your own sales contests and rewards. For instance, if your monthly quota is four homes, aim for six and reward yourself for hitting that target. The reward could be a fancy dinner, a weekend getaway, or a new gadget. Personal incentives keep you motivated and make the achievement more gratifying.
Taking Control of Your Success
As a sales professional, you are in control of your success. Setting and achieving your own goals empowers you to take ownership of your career. It’s not just about meeting the company’s expectations; it’s about surpassing them and defining your own standards of excellence.
Focus On The Behaviors That Drive Success
Sales quotas and goals, while interconnected, serve different purposes in your professional journey. Quotas ensure that the organization meets its financial targets, but personal sales goals and stretch goals push you to excel beyond the basics. Focus on the behaviors that drive sales, maintain a winning mindset, and create your own incentives to stay motivated. Remember, you are in charge of your success. Set your goals high, and continually strive to surpass them.
