Around a third of salespeople don’t believe in the way their objectives are set, and think that the processes used lack transparency. [1]
Is this enough to explain why, in both Europe and the USA, around 40% of sales people fail to achieve their targets?
Certainly not! But setting SMART(E) objectives could well change all that…
A quick reminder of the SMART method
The SMART method, created by George T. Doran in an article entitled There’s a S.M.A.R.T. way to write management’s goals and objectives, enables you to define appropriate objectives, measure them and optimize the success of a project:
S is for Specific
M as in Measurable
A as in Attainable
R as in Achievable
T for Temporally defined
The aim is to define objectives that are clear and easy to understand for all concerned. This greatly enhances project success and management.
You’ll find plenty of articles on the web if you’d like to find out more, but what we’re interested in here is the “E”…
SMART as intelligent… E as efficient
The problem with the SMART method for a traveling sales force is that you don’t know whether the objective you’ve set yourself is achievable or not. We can assume it, but not affirm it.
Let’s take a concrete example from the retail sector.
I’d like to increase/decrease my DN or DV by so many points of sale or by so many percent. How do I know if this is realistic with the current sales force? How do I know that current targets aren’t already unattainable?
You don’t have to be a sales or marketing manager to know that the more time you spend with your customers and prospects, the more likely you are to do business. That’s what business is all about.
If we can measure the time it takes to visit all the points of sale in a sector, then we’re in a position to assess part of our sales efficiency and improve it.
Efficiency then focuses on my area managers’ ability to achieve objectives in the time they have available. We can also talk about efficiency in the case of under-loaded sectors, i.e. those that don’t make the most of the time available to sales reps in the field.
“The precision provided by Datakiss’ dynamic sales sectorization enables precise, individualized workload measurement.
All factors are now taken into account to measure how much time a sales rep will spend on the road visiting all his customers.”
Laurent Ngin, co-founder Datakiss
SMART as intelligent… E as equitable
Setting targets still means distributing a portfolio of customers of equal weight. Each of my field sales reps works with 100 customers, or each of my sales reps has a customer portfolio worth x K€.
In principle, the distribution is fair and easy to communicate. But in reality, are we sure that everyone has the same chances of success?
Assuming that my sales reps have an equivalent distribution of customers (Gold, Silver, Bronze, …) and that the time they spend with them is equivalent (frequency and time of visits), they still have to travel to visit them. And that’s when things get complicated and unfair.
Having 100 customers in Paris, in an urban area or in a rural setting, is not the same thing in terms of travel time.
Allocating targets on a time basis is therefore the key to achieving them and making them fair.
Numerical targets, in terms of sales and number of customers, continue to exist and to be important. They feed the SMART side of objectives. But fairness makes them fair and, above all, reinforces the realistic aspect, because sales people have the time they need to achieve them.
SMARTE objectives, but how?
As you can see, time measurement is the factor that will make your objectives SMART.
Basically, it’s a question of determining the perfect match between the objectives you set yourself and the size of your sales force. And this is now possible thanks to the sales force workload calculation.
Objectives are represented by figures, sales potential, DN or DV. They are then translated into sales pressure by determining visit frequencies and times by customer type. In this case, we’re talking about Face to Face, i.e. the time area managers will spend with customers.
Until now, the most advanced systems have relied on non-exhaustive in-house surveys to take into account the time spent visiting customers. But these systems exclude all geographical particularities of sectors, road networks or even salespeople’s homes.
The precision provided by Datakiss’ dynamic sales sectorization enables precise, individualized workload measurement. All factors are now taken into account to measure the amount of time a sales rep will spend on the road to visit all his customers.
Salespeople’s working time is well used, while still being respected, and targets in terms of visits are ambitious but achievable.
The workload therefore acts as a real justice of the peace when it comes to setting objectives, while at the same time giving a sense of fairness and equality between employees in achieving them.
Conclusion
Of course, even with a SMART(E) method for setting objectives and managing the traveling sales force, we’ll still have a proportion of sales reps who don’t reach their targets. There’s no magic bullet!
But if we can ensure that the objectives we set are achievable and make the most of the given time pool in relation to the visits to be carried out, the team’s performance is bound to improve. And we see this on a daily basis.
And then there’s what technology can’t measure. A clear, transparent, fair and equitable method of setting objectives will promote team cohesion and motivation in the face of challenges. In sport, this is how teams reach new heights.
[1] Studies conducted by the Sales Management Association and CSO Insights