Many frustrated people search in vain for the Sales Targets tab in salesforce.
However, don’t waste your time.
It does not exist.
Nevertheless, measuring performance against sales targets is a critical activity in running a sales team.
Fortunately, there ARE ways to measure performance against sales targets in salesforce.
However, it goes deeper than that.
Sales managers must know two things:
- First, how does historic performance stack up against sales targets? They need to know this by company, sales team, individual rep and other dimensions.
- Second, executives must understand whether there is enough pipeline. Is the funnel big enough to meet the target this month, next month or next quarter?
Without this information, you are flying blind.
That is an uncomfortable position.
It means that it’s difficult to know which controls to adjust to be sure of hitting sales targets.
For example, if you know there is enough pipeline to meet next month’s sales target then focus the team primarily on closing existing deals.
Alternatively, if there is insufficient pipeline you have a different challenge. You must close the deals that do exist. However, the sales team must also find new opportunities simply to have a chance of hitting sales targets.
This means measuring performance against both historic and future sales targets is essential.
To do this, there are three options for tracking performance against sales targets in salesforce.
- Dashboard gauge.
- The Forecasts tab.
- Custom solution.
We explain how each one works, its pros and cons and when each is the best option.
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Options for measuring sales targets in salesforce
Here are the three options.
Collectively, they provide salespeople and managers with different levels of information and target tracking experience.
We describe the options and give pointers to indicate the situation when each is appropriate.
Option 1 – Dashboard Gauge
Use a salesforce dashboard gauge to indicate overall achievement against sales target.
The arrow indicator shows the current sales performance. Use the red, amber and green segments to set relevant breakpoints. For example, amber to represent 80% sales 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 time period.
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 measures performance at the company level, there’s no visibility of individual rep or sales team performance against sales targets.
- Manual re-calibration of breakpoint values is required for each target period. In other words, if the target next month is different to this month, the breakpoints need to be modified.
- Pipeline deals are not shown. Unfortunately, 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 winning 30% of pipeline deals means beating target.
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, set up similar gauges for individual salespeople and teams.
- Sales targets are the same for each period. In other words, it is not necessary to modify breakpoints each month.
The dashboard gauge is a viable option for relatively straightforward measurement of sales targets.
It’s a simple solution.
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. This will give full visibility of sales performance and pipeline.
Option 2 – Salesforce Forecasts Tab
The Forecasts tab is a sophisticated and advanced way of tracking performance versus sales targets.
You can view Closed Won opportunities that contribute to sales targets in the Forecasts tab.
Pipeline deals are also included. Categorize opportunities to indicate the chances of a successful close. This gives managers important information on the strength of the funnel and the likelihood of hitting target.
Managers can override the forecasts made by their direct reports. For example, they can adjust the overall forecast to balance excessive optimism or pessimism of salespeople.
However, there is a downside.
The Forecasts tab is complex.
It’s the most difficult functionality sales people are likely to use.
Significant training and coaching is needed to use the Forecasts tab successfully in tracking performance against sales targets.
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 implies 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.
Contact us if you’re interested in exploring this option, we can help!
Option 3 – GSP Target Tracker
Many of our customers use the GSP Target Tracker to measure performance against sales target.
Click play to see how the GSP Target Tracker measures sales performance against sales targets in salesforce.
As a managed package, the Target Tracker is easy to implement into any salesforce environment.
Minimal training is needed for salespeople and managers to use the Tracker compared to the Forecasts Tab. Fortunately, the Tracker also takes away the need to create forecasts manually.
Closed won and pipeline deals automatically link to relevant sales targets. This means targets are measured against secured business plus 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 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 links to the relevant target; in this case, Michael Watson’s sales 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 analyses Michael’s April pipeline by Opportunity Stage. This means both Michael and his manager have clarity on the likelihood of hitting target based on the pipeline deals.
Dashboard charts summarize company and team level information.
The dashboard shows over / under performance against monthly sales target at the company, team and individual 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.
Track Sales Performance And Pipeline Versus Target
Get more details about the GSP Sales Target Tracker
Pros of the GSP Target Tracker
- It’s easy for sales reps use. Opportunities automatically link to relevant targets.
- Highly visual information on performance against target.
- 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.
It’s the right choice if
- You need a powerful solution that is easier to use than the Forecasts tab.
Recorded Webinar on sales targets in salesforce
Watch Gary Smith and Nick Ambrose demonstrate the three solutions in action.
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.