Achieving Success Through Strategic Goal SettingLESSON #2: Crafting Effective Goals
In the realm of self-improvement literature, motivational seminars, and sales training workshops, the importance of goal-setting is a recurring theme. The rationale behind this emphasis is clear: setting well-defined goals can exponentially amplify the impact of your endeavors. Nevertheless, our objective here isn't to convince you of the merits of setting goals; we assume you already recognize their value. Instead, the focus of this article will be on the art of crafting the most suitable sales goals to efficiently manage your sales pipeline, ultimately leading to the attainment and even surpassing of your desired outcomes.
Distinguishing Between Effective and Ineffective Goals
This article is not just about setting any goals; it's about setting the right ones. Surprisingly, over 80% of companies tend to establish inappropriate goals for their sales teams – goals that are often unattainable. Recent research has illuminated the fact that striving solely for results-oriented goals can make achieving these targets nearly insurmountable.
Consider this: if it were feasible for a sales manager to directly control revenue, every salesperson on the planet would be luxuriating in wealth beyond imagination. However, this is far from reality. The truth is that we cannot directly manipulate outcomes; our influence extends only to the management of our actions.
The Bright Side: Attain Stellar Sales Outcomes with Activity Goals
The silver lining in this scenario is that you can achieve remarkable sales outcomes by setting activity-oriented goals. In fact, meticulously planned and executed activities can yield results far exceeding what traditional results-oriented goals may have promised in the past.
By focusing on the right kind of goals, you'll not only harness the power of goal-setting but also ensure that your efforts align with manageable and effective objectives, enhancing your ability to steer your sales journey towards unprecedented success.
Consider the case of a bookseller who aspires to achieve daily book sales of $1,000. Now, imagine a scenario where, after engaging with 17 potential customers, not a single sale is made, and the 17th interaction ends in a discouraging rejection. Such an outcome can be demoralizing and make it challenging to persevere. It's a situation we, the founders of Pipedrive, can relate to because we began our journey in sales facing similar challenges.
Now, let's contemplate an alternative approach. Suppose the same bookseller sets an activity goal of conversing with 20 prospects each day. In this scenario, even if 17 prospects decline, it becomes inconsequential. Only three prospects remain to be engaged with.
Interestingly, when your focus shifts from obsessing over results to concentrating on activities, a positive transformation occurs. You start feeling more motivated and, paradoxically, become more effective. Take Michael Phelps, the Olympic swimmer, as an example. When he plunges into the Olympic pool, his mind isn't fixated on the gold medal. Instead, he concentrates on executing each move flawlessly—just as he has practiced countless times during training. It's only when he executes every move correctly that the gold becomes attainable, and he understands this well.
As emphasized in Article 1, not everyone you engage in a sales conversation will become a customer. The key lies in populating the front end of your sales pipeline with an appropriate number of conversations and skillfully managing them through to ensure a desired number of closed deals at the far end. This doesn't imply neglecting your desired outcomes; it simply means not allowing them to monopolize your attention.
If you followed the exercises outlined in the preceding article, you should have a good grasp of your sales cycle's duration and the critical metrics that drive success.
Rather than fixating on specific results, establish activity-based goals. For instance, aim to initiate 10 new conversations and conduct four product demonstrations daily. You won't know which of the 50 individuals in your sales pipeline will eventually convert into a sale. The objective is to concentrate on delivering compelling and effective presentations to each prospect, without fretting over the uncertainty of conversions.
Crafting concrete activity goals will boost your confidence and lessen the impact of rejection. Shifting your focus from the unknown outcomes to the actionable tasks at hand will lead you to surpass any expectations you may have had regarding results.
Calculate the average number of key activities you engage in, such as meetings, emails,
follow-upcalls, and new conversations initiated, per week or per day.
Establish daily and weekly activity goals based on your performance relative to your current business and revenue results. Utilize tools like the Sales Pipeline Calculator to assist in this process.
Next, we are waiting for you in the third lesson.