Your team missed target again. You've had the chat. You've tried a new incentive. The numbers haven't moved.
When a sales team keeps missing, owners usually look at the people first. In my experience, the people are only part of the picture.
Here's where I start.
1. Check the target itself
Where did the number come from? A lot of targets are last year plus x % of growth the owner wants to achieve. That doesn't give you a realistic growth target. So how do you set targets?
A good target is built from the bottom up. How many quality leads come in. How many turn into quotes. How many quotes you win. Your average deal size. The cost of the salesperson & your business costs.
If the maths doesn't add up, the team was never going to hit it.
2. Look at the pipeline, not just the result
Missing target is the end of the story. The pipeline tells you why.
Not enough leads coming in?
Plenty of leads, but they stall after the first meeting? Better yet, what stage are they stalling at?
Quotes going out, but not getting won?
Each one has a different answer. More activity won't help if deals are dying at the quote. A good pipeline should tell you where your sales die & as a result give you a really clear understanding of where you should focus your efforts. Maybe it's product training or if you're in a highly technical environment with multi-disciplinary teams coming together to support deals, like IT or manufacturing, it could be falling apart where the sales team need support from other business units. Point is, the pipeline should tell you!
3. Make sure everyone knows what good looks like
Get your team to run through this every week in a sales meeting.
What's your target?
Where are you at against your target?
What happens next with your top 3 deals?
What help do you need from the business to close those deals?
What currently gets in the way or causes friction when you're taking a client through the buying journey? Are the systems a pain to deal with? Do things slow them down? Do they not have the knowledge they need to do their job? Do they struggle to get the technical support they need to do their job?
What activity have you been doing to generate additional pipeline or cover the target gap? (If there's a gap).
A good salesperson will advocate for your business with their clients, but they will also advocate for their clients back into the business. They should be asking for what they need to get the thing done. Train them to do that!
If you get vague answers, then their sales process is wishful thinking.
4. Check the rhythm
How often do you sit down with the team & look at the numbers together? If it's only at the end of the month, it's too late to change the result.
A short weekly pipeline meeting changes a lot. It doesn't need to be long. It needs to happen every week.
Don't let it become a talk fest. To the point, black & white numbers & the help you need. Really clear call to action at the end of each meeting.
There's plenty of time for conversations about other things. If you need to, leave time at the end of each meeting. No one likes a meeting for the sake of having a meeting. Make it count & make it productive for everyone involved. I have never been a fan of a sales meeting that only serves sales managers. That's not helpful to anyone & it sets your team up to lose their critical thinking skills. You want them to be as empowered & autonomous as they can be! Turning it into a session that asks them to present to you with relevant conversation around their pipeline is what will do that.
5. Then look at the people
Once the target, pipeline, process & rhythm are right, you can see who's performing & who needs help. Some need coaching. Some are in the wrong role. Some just needed someone leading them.
Often the best salesperson was promoted to run the team. Selling & leading are different skills. That's not their fault.
The question to ask yourself
Is your team failing? Or are they missing the setup they need to win?
I'm a fractional sales leader. I come in, work through these steps with you & your team, then lead them until it runs. If your team keeps missing & you're not sure why, call me on 0434 522 983 or send an enquiry. I would love to chat about how I can help.