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Many frustrated people have looked for the Target tab in salesforce.
Don’t waste your time. It does not exist.
Yet measuring performance against sales target is a critical activity in running a sales team. Isn’t it?
Fortunately there ARE ways to measure performance against sales target in salesforce.
In fact, it goes deeper than that.
We need to know how the company, sales teams and individual reps performed historically against their sales targets. But we also need to know whether there’s enough pipeline to meet the target this month or next month or next quarter.
Without this information, you are flying blind.
That is an uncomfortable position. As the pilot, it means you cannot adjust the controls and take action to make sure the sales target will be hit.
For example, if you know there is enough pipeline to meet next month’s sales target then focus the team, first and foremost, on closing existing deals.
On the other hand, if there is insufficient pipeline you have a different challenge. You need to close the deals that do exist. But the sales team also need to find new pipeline simply to have enough to go at.
So measuring performance against both historic and future sales targets is essential. Here are the options for doing this in salesforce.
There are three ways to measure performance versus sales target in salesforce. We explain how each one works, its pros and cons and when its the best solution.
By the way, if you like Option 3 then get in touch. We have a package that is easy to implement for this.
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Options for measuring sales targets in salesforce
Here are the three options. They provide salespeople and managers with different levels of information. We’ve described the options and given pointers to indicate the situation in which each is appropriate.
Option 1 – Dashboard Gauge
The arrow indicator shows the current sales performance. Use the red, amber and green segments to set relevant break-points. For example, amber to represent 80% target achievement, green for 100% sales target achievement.
Feed the gauge using an underlying matrix or summary report. The report simply needs to summarize the value of deals won over the relevant period of time.
Pros of the gauge approach
- The report and gauge are simple and easy to set up.
- The gauge is easy on the eye.
- It’s a quick and powerful summary of sales performance against target.
Cons of the gauge approach
- It is a blunt instrument. For example, if the gauge is at the company level, there’s no visibility of individual rep or sales team performance against sales target.
- The breakpoint values must be manually re-calibrated for each target period. If the target next month is different to this month, the breakpoints need to be modified.
- Pipeline deals are not shown. This means we don’t know if there’s enough funnel to meet the sales target for next month. There’s nothing to tell us, for example, if 30% of pipeline deals are won whether the target will be hit.
It’s the right choice if
- You need to set something up quickly.
- You need a Board-level chart to summarize performance.
- You only need to measure top level performance against sales target. Alternatively if you are prepared to invest the time you can set up similar gauges for individual salespeople and teams.
- Sales targets are the same for each time period. Breakpoints don’t need to be modified each month or quarter. (Or remembering to re-set the red, amber and green breakpoint values on a monthly basis isn’t going to be a problem).
The dashboard gauge is a viable option for relatively straightforward target measurement. It’s a simplistic solution. On the other hand, if you need to set up a sales target reporting mechanism in the next 5 minutes then this is the option to go for.
Remember, use the gauge in conjunction with other dashboard charts and reports to gain full visibility of the sales performance and pipeline.
Option 2 – Salesforce Forecasts Tab
The Forecasts tab is a sophisticated and advanced way of tracking performance versus sales target.
View Closed Won opportunities that contribute to sales target achievement in the Forecasts tab.
Pipeline deals are also included. These opportunities are categorized to indicate how likely they are to close successfully. Managers have important information on the strength of the funnel and the extent to which sales targets will be hit.
Managers can also override the forecasts made by their direct reports. This means they can adjust the overall forecast to balance excessive optimism or pessimism of salespeople.
There is a downside. The Forecasts tab is a relatively complex piece of functionality. Training and coaching is needed to help both salespeople and managers use it to full advantage.
Pros of the Forecasts Tab
- Set targets at individual, team, company and product family level.
- Track performance against sales target based on opportunity category including won, committed, pipeline and best-case deals.
- Allow managers to override forecasts submitted by their direct reports and modify the projected performance against target for their team.
- Review forecast history to learn from forecasts submitted in the past.
- Drill down from the top level forecast to examine performance against sales target at individual rep and team level.
Cons of the Forecasts Tab
- The Forecasts tab is relatively complex to set up and use.
- It requires detailed training for sales reps and their managers.
- Salespeople must update their individual forecasts in order for the overall forecast to have meaning. This means a high level of commitment is required across the team to get the full benefits.
It’s the right choice if
- You have sophisticated target measurement requirements.
- Managers must be able to override the forecasts submitted by their salespeople.
- The sales team is mature and already has a good level of salesforce user adoption.
- The business is prepared to commit to appropriate training for salespeople and managers.
The salesforce Forecasts Tab provides robust target tracking and forecasting capabilities. However, bear in mind that successful roll-out means appropriate planning and configuration effort.
Option 3 – GSP Target Tracker
Many of our customers use the GSP Target Tracker to measure performance against sales target. We have created it as a managed package that can be easily implemented to any salesforce environment.
Much less training is needed for salespeople and managers to use the Tracker compared to the Forecasts Tab. The solution also takes away the need to manually create forecasts.
Closed won and pipeline deals are automatically linked to the relevant sales target. Targets can be measured against secured business and the anticipated revenue from funnel opportunities.
The sales targets are entered into a custom object for each sales person for each month. In the example above, we’re looking at the sales target for Michael Watson in April.
The lower portion of the screen shows the Opportunities that have been automatically linked to this target record. The Target Tracker does this by looking at the Close Date of the Opportunity and the Opportunity Owner. The Opportunity is then linked to the relevant target – in this case, Michael Watson’s target for April.
If the Close Date or the Opportunity Owner change the Opportunity is automatically unhooked and linked to the newly relevant target record.
The embedded chart on the left hand side of the page shows Michael’s target in blue, his Closed Won deals in green and the Expected Revenue of his April pipeline deals in orange. The purple bar shows that based on these numbers, Michael has a shortfall against his target.
The doughnut chart to right provides analysis of Michael’s April pipeline by Opportunity Stage. This means both Michael and his manager have clarity on the likelihood that his target will be achieved based on the pipeline deals.
Dashboard charts summarize company and team level information.
The dashboard chart shows over / under performance against monthly sales target at the company or team level.
Drill down to the underlying report to view the sales rep target. This compares the sales target with the value of Closed Won deals, Expected Revenue from the pipeline.
Pros of the GSP Target Tracker
- It’s easy for sales reps use. Opportunities are automatically linked to relevant targets.
- Highly visual information on performance against target is provided.
- Extensive drill down capability from company level performance to sales team and individual rep.
- Assess the quality of the pipeline and its potential contribution to target achievement.
- Easy to set up (implemented through a managed package).
Cons of the GSP Target Tracker
- A (very reasonable!) license fee is payable.
It’s the right choice if
- You need a powerful solution that is easier to use than the Forecasts tab.
Download a Powerpoint version of this blog post by viewing the accompanying SlideShare, How To Manage Sales Targets in Salesforce.
We have implemented each of the options described in this blog post for customers. Contact Us to find out more about applying each approach in your business.
Track Sales Performance And Pipeline Versus Target
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Recorded Webinar on sales targets in salesforce
Watch Gary Smith and Nick Ambrose demonstrate the three solutions in action.