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The 1-Hour Sales Leader – How to Set up Your Industrial Gas Sales Objectives

You want to want to determine what your sales people will do.

Here is the proven 6 step process that will make you set up your sales objectives effectively

Step 1 - Define Sales Responsibilities

Define your sales people's prime responsibilities by check off the list below. For the most important tasks, set priorities e.g. from 1 to 3.

Also see if there is a more efficient way to do some of the non-selling task, such as using collectors to collect money or the sales office to gather competitor intelligence.

Sales Task

Sales Person's
Responsibility (y/n)

Priority

Sell products

Yes

1

Increase Prices

Yes

1

Find Prospects

Yes

2

Collect Payment Due

No

Solve Problems

Yes

1

Deliver Emergency Orders

No

Deliver Invoices

No

Write Quotations

Yes

2

Write Reports

Yes

3

Competitors Intelligence

Yes

2

Others (specify)

Step 2 - Splitting up Your Sales Time

Besides being politically active there is not much you can do about weekends, vacations and public holidays, but the split up of the working days you can actually influence.

Based on your previous analysis on the present situation, fill in how you would like your sales people to utilize their time.​

Activity

Present

Target

Actions

Effective Sales Days

150

200

Training

10

12

Detecting New Opportunities

Internal Meetings

20

15

Use Skype

Administration, Follow Up

46

35

Sales Force Automation System

​Step 3 - Segmenting Your Sales Area

You need to decide how your customer base is split among your sales people.

Are they responsible for a geographical area or for certain customers with similar demands, etc. Each of these segments might require a different approach when setting the objectives since they have different tasks to fulfill.

Decide on the different groups of sales people which will have a unique set of criteria. Mark the appropriate columns as shown in the figure below.​

Sales Role

Manufacturing
Industry

Process
Industry

Health Care

Sales Manager

Key Account Manager

Senior Sales Person

Junior Sales Person

You may need to add the following dimensions in to the table above:

Geographically by region or district

By application, e.g. Food and Metallurgy need different criteria.

This can of course also be used for other employees, such as sales office people and Retail Managers.​

Step 4 - Choosing Sales Goals

It is extremely important that sales goals are in line with and contribute to your company's overall goals as well as what you want your sales people to do.

Select a number (<10) of criteria for each of the about stated segments. You should measure them on:
- Sales Increase for Existing Customers
- New Sales
- Pricing​

Below you'll find an example what it could look like.

Sales Goals

Present Customer Sales % Last Year

New Sales ( % of Budget)

Gas Sales Increase ( % of Last Year)

Number of Credit Days

Number of Visits / Year

Number of Visit Reports (% of Visits)

Database Completition %

Step 5 - Weighing Sales Goals​

Each of the goals usually has a different importance to your company. This can be accounted for if you allocate different weights to the criteria as a percentage of the total.

Weight the criteria according to their importance to the company. Remember that the performance based criteria should not account more than 30% of total. An example is shown below.​

Sales Goals

Weight

Present Customer Sales % Last Year

35

New Sales ( % of Budget)

15

Gas Sales Increase ( % of Last Year)

20

Number of Credit Days

10

Number of Visits / Year

10

Number of Visit Reports (% of Visits)

 4

Database Completition %

 6

TOTAL

100

Step 6 - Setting Objectives

The objectives are the numerical measures that are the target ranges for you sales people. These objectives correspond to a points scale from 0 to 100, where 0 is the minimum objective required and 100 is the maximum which only your top stars will achieve.

At the 50 point level, the objective should be such that the average sales person will be able to achieve. The 50 point level should also be reflecting your budget expactions.

For each of the criteria, define the numerical measures for the different point levels. Start with the 50 point level, continue with the extremes (0 and 100), and then set the 25 and 75 point levels accordingly.

Sales Goals

Weight

Minimum 
0

 Average
50

Maximum
100

Present Customer Sales % Last Year

35

90

100

120

New Sales ( % of Budget)

15

98

100

110

Gas Sales Increase ( % of Last Year)

20

100

105

 115

Number of Credit Days

10

65

60

50

Number of Visits / Year

10

500

600

700

Number of Visit Reports (% of Visits)

 4

80

85

100

Database Completition %

 6

80

90

100

TOTAL

100

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