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4 Ways To Measure Revenue Against Sales Targets In Salesforce

4 Ways To Measure Revenue Against Sales Targets In Salesforce

Many executives get very frustrated, trying to measure sales versus target in Salesforce.

Perhaps you’re one of them.

Like others, you may even have searched in vain for the Targets tab. (If you’re still looking, stop now; it doesn’t exist).

Fortunately, if you want to know how to measure sales versus target in Salesforce, then you’re in precisely the right place.

That’s because I’ll show you how to answer two essential questions when it comes to quota management in Salesforce:

  • First, how do historical sales performance stack up against target? You likely need to know this for individual reps, by teams and for the overall company.
  • Second, is the funnel big enough to meet the target this month, next month, or next quarter? In other words, is there enough pipeline coverage?

Quite simply, without this information, you’re flying blind. In that case, it’s challenging to know which controls need adjusting to be sure of hitting your quota.

By the way, do you prefer to watch a video rather than read? If so, take a look at this recent webinar. I cover all the essential points and demo the GSP Target Tracker.

If not, skip the webinar recording, and jump to the next section.

What do we mean by Sales Target?

I mainly use the word ‘target’ in this article.

In your business, perhaps you prefer ‘quota.’ Or, maybe everyone refers to the ‘budget.’

Possibly, you talk about ‘hitting the number.’

Here, I assume they are all the same thing. A sales target is a dollar revenue goal over a period.

It doesn’t need to be dollars, of course.

The target may be in Sterling, Euros or any other currency. You may even have sales goals in multiple different currencies in your business.

You get the idea.

Three Types of Sales Target

We usually want to measure sales versus target at salesperson, team, territory or company.

However, in most businesses, we want to measure sales against three types of targets.

1. Historic sales targets

Historical sales targets are in the past. For example, last month, last quarter, last year.

We only need to know one thing about historic sales targets. Was the sales revenue higher or lower than the target?

Historic sales targets are in the past

Next, we need to know about current-period targets.

2. Current sales targets

These are the targets we are working to achieve right now. For example, this month, this quarter, this year.

However, we need to compare the target with two metrics.

These are the targets we are working to achieve right now

Firstly, the sales revenue already won.

Second, the size of the pipeline due to complete in the period.

In other words, pipeline coverage is an essential factor in calculating whether we will achieve quota for targets in the current period.

3. Future sales targets

These targets are in the future. For example, next month, next quarter, next year.

With these targets, there’s no won revenue because a deal can’t close successfully in the future.

These targets are in the future

In other words, pipeline coverage is king. We need to know whether the pipeline is big enough for us to meet future targets.

With that in mind, let’s look at the four ways to measure sales versus target in Salesforce.

How To Measure Sales Targets In Salesforce

There are four options for tracking performance against sales targets in Salesforce.

  1. Dashboard gauge.
  2. Forecasts tab.
  3. Lightning Home Page Performance Chart.
  4. GSP Target Tracker.

Collectively, the options provide salespeople and managers with different levels of information and target tracking experience.

We explain how each one works, its pros and cons, and when each is the best quota management option.

Bottom line:

If you want to cut to the chase, we believe the GSP Target Tracker is, by far, the best way to measure sales versus target in Salesforce.

Option 1 – Dashboard Gauge

This option uses a Salesforce dashboard gauge to display overall sales against the target.

Gauge displays overall sales against the target

The arrow indicator shows sales won. In the gauge, use the red, amber and green segments to define relevant breakpoints. For example, use amber to represent 80% sales target achievement and green for 100% sales target achievement.

The gauge relies upon an underlying sales report. The report summarizes the value of deals won over the relevant period.

Pros of the dashboard gauge

  • The report and dashboard gauge are simple and straightforward to set up.
  • The gauge is an easy way to understand quota performance visually.
  • It’s a quick and simple high-level summary of sales performance against target.

Cons of the gauge approach

  • The gauge is a simplistic target metric. For example, when measuring performance at the company level, there’s no visibility of individual rep or sales team sales versus target.
  • Breakpoint values need to be manually re-set for each target period. For example, if month-on-month targets are different, the breakpoints need to be changed each time.
  • There’s no visibility of pipeline deals. Unfortunately, this means we don’t know if there’s enough pipeline coverage to meet the sales target for next month. There’s nothing to tell us, for example, if winning 30% of pipeline deals means we’ll exceed the budget.

It’s the right choice if

  • You need to set up a target metric very quickly. If you need a target-tracking solution in the next five minutes, use this option.
  • You only need to measure top-level performance against sales targets. Alternatively, it’s an acceptable choice if you are prepared to invest the time to set up and maintain similar gauges for individual salespeople and each team.
  • Sales targets are the same for each period. In other words, it is not necessary to modify breakpoints each month.

A dashboard gauge is a viable option for a simple, straightforward measurement of sales targets.

Remember, use the gauge in conjunction with other dashboard charts and reports to get full visibility of sales performance and pipeline. Incidentally, the free GSP Sales Dashboard includes the target gauge and report. You can download the dashboard from the AppExchange here.

Option 2 – Salesforce Forecasts Tab

The Forecasts tab is the standard function in Salesforce for target measurement.

It’s an advanced method of comparing sales versus quota.

Forecasts tab is an advanced method of comparing sales versus quota

You can view Closed Won opportunities that contribute to sales targets in the Forecasts tab.

Pipeline deals also show up. Consequently, managers have valuable information on the strength of the funnel and the likelihood of achieving sales goals.

Managers can override the forecasts made by their direct reports. For example, they can change the overall estimate to balance excessive optimism or pessimism of salespeople.

However, there is a downside.

Many salespeople and managers find the Forecasts tab highly involved. The functionality is challenging to use.

As such, significant training and coaching is needed to use the Forecasts tab successfully for tracking performance against sales targets.

Pros of the Forecasts Tab

  • Set sales targets at individual, team, company and product family level.
  • Tracks performance against quota based on the opportunity forecast category (won, committed, pipeline and best-case).
  • Managers can override forecasts submitted by their direct reports. Doing this modifies the expected performance against current and future team targets.
  • Reviewable history to learn from the accuracy of forecasts submitted in the past.

Cons of the Forecasts Tab

  • The Forecasts tab is hard to maintain and use compared to other areas of Salesforce functionality.
  • As such, it needs detailed training for sales reps and their managers.
  • Salespeople manually update their forecasts to make the overall sales projection more reliable. That means a high level of commitment across the team is essential to get the full benefits from the Forecasts tab.

It’s the right choice if

  • You have complex target measurement requirements.
  • In your business, managers often override the forecasts submitted by their salespeople.
  • The sales team is mature and the company has a high level of Salesforce user adoption.
  • Appropriate training for salespeople and managers is available.

The Salesforce Forecasts Tab provides robust target tracking and forecasting capabilities. However, successful roll-out and ongoing adoption need proper planning and preparation.

Option 3 – Lightning Home Page Quarterly Performance Chart

You’ve probably seen the quarterly performance chart on the Salesforce Lightning Home page.

Here’s an example.

Lightning Home Page Quarterly Performance Chart

The green line is the sales goal. The orange line shows the value of closed-won opportunities. 

The blue line shows Closed-won and opportunities over 70% probability.

However, it’s far from my favorite method of tracking sales versus target. 

Pros of the Lightning Quarterly Performance Chart

  • It’s free to use as a standard Salesforce Lightning feature. 

Cons of the Lightning Quarterly Performance Chart

  • Only the quarterly sales goal appears. There’s no monthly breakdown.
  • No drill-down to see the underlying opportunities.
  • Sales managers cannot see the Lightning Quarterly Performance Chart of their team members.
  • There’s no way to adjust the 70% setting. For example, it’s not possible to include opportunities of over 50%.

It’s the right choice if

  • You don’t like any of the other four options.

For these reasons, I don’t believe many companies use the quarterly performance goal as their main method of measuring sales quotas.

Option 4 – GSP Target Tracker

Many of our customers use the GSP Target Tracker to measure performance against sales targets.

Keep reading or click play to see how the GSP Target Tracker measures sales performance against sales targets in Salesforce.

The Target Tracker is a managed package. As such, it is plug-and-play with any Salesforce environment.

Salespeople and managers need little training to use the Target Tracker app. The Tracker also takes away the need to adjust forecasts manually.

Closed won and pipeline deals automatically link to relevant sales targets. Consequently, it’s easy to compare sales goals with a combination of won deals and an outstanding pipeline.

In other words, everyone has full visibility of pipeline coverage.

Look at the example below. It’s the sales target for Dave Apthorp, for a single month.

We can quickly see Dave’s sales performance this month versus target:

The target tracker allows you to easily see sales performance this month versus target

The first on-page chart on the right shows Dave’s target in blue; his Closed Won deals in green and the Expected Revenue of his pipeline deals due to close this month are in orange. In other words, we can see the pipeline coverage versus target.

The purple bar shows that, based on these numbers, Dave has a shortfall against his target.

The second chart analyses the pipeline for the month. Consequently, both Dave and his manager are clear on the likelihood of hitting the target based on the pipeline deals. (Are we sure those deals in Qualification will be complete by the end of the month?).

The lower section 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.

easily view opportunities that are linked to target records

However, if the Close Date or the Opportunity Owner change, the Opportunity is automatically unhooked and linked to the newly relevant target record.

Target Tracker Dashboard

Dashboard charts within the GSP Target Tracker summarize company and team information.

target tracker dashboard summarizes all company and team information

The dashboard shows over / under-performance against sales targets at the company, team and individual level.

Drill down to the underlying report to view the sales rep target. These reports compare 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 to use. Opportunities automatically link to relevant targets.
  • There’s highly visual information on performance against target.
  • Powerful reports and dashboard charts provide information on sales goal performance at company, team and individual rep levels.
  • The quality of the pipeline and and pipeline coverage are very clear.
  • Very easy to set up. Install direct from the AppExchange.
  • Company-specific customizations are also available.

Cons of the GSP Target Tracker Tab

  • A license fee of $250 per company per month (unlimited users).

It’s the right choice if

  • Your need is for a straightforward solution that gives powerful insight into target attainment and pipeline coverage.

So, that’s our detailed explanation of the four ways to measure sales versus target or quota in Salesforce.

Of course, get in touch to talk about how to use them in your business. Or, follow the link below and test drive the GSP Target Tracker today.

Measure Sales Performance Versus Target

Download the App from the AppExchange today

Recorded webinar on Sales Targets in Salesforce

Watch Gary Smith and Nick Ambrose demonstrate the three solutions in action.

Got a question? Contact Us to find out more about tracking sales versus target in Salesforce in your business.

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4 Ways To Measure Revenue Against Sales Targets In Salesforce

4 Ways To Measure Revenue Against Sales Targets In Salesforce

Many executives get very frustrated, trying to measure sales versus target in Salesforce. Perhaps you're one of them. Like others, you may even have searched in vain for the Targets tab. (If you're still looking, stop now; it doesn't exist). Fortunately, if you want...

How To Measure Sales Versus Target In Salesforce (2020)

How To Measure Sales Versus Target In Salesforce (2020)

If you want to track sales versus target in Salesforce, there's a superb app that empowers you to do it. It's called the GSP Target Tracker. Here's a summary of the essential things the Target Tracker helps you do in Salesforce: Compare rep, team, and company sales...

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GSP Target Tracker

Track targets in Salesforce including won and pipeline deals

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Download The 12 Must-Have Dashboard Charts

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How To Measure Sales Versus Target In Salesforce (2020)

How To Measure Sales Versus Target In Salesforce (2020)

If you want to track sales versus target in Salesforce, there’s a superb app that empowers you to do it.

It’s called the GSP Target Tracker.

Here’s a summary of the essential things the Target Tracker helps you do in Salesforce:

  • Compare rep, team, and company sales versus target.
  • Measure the pipeline coverage ratio. Expressly, understand whether you have enough funnel to meet your sales quota.
  • Conduct meaningful pipeline reviews and salesperson 1.1s.

Furthermore, the app delivers target performance metrics and pipeline visibility that you are unlikely to get elsewhere in Salesforce.

The Target Tracker app is straightforward to use for both salespeople and managers. You can customize the app within Salesforce to meet the specific needs of your company.

And here’s the best thing of all. The Target Tracker costs $250 per month per company, and there’s no user-based fee. We think that’s an excellent price.

Measure Sales Versus Target In Salesforce with the GSP Target Tracker

Here’s what we cover in this article:

  • How the Target Tracker works in Salesforce.
  • The Salesforce Target Tracker dashboard.
  • Ways you can customize the Target Tracker.
  • How to trial and buy the Target Tracker app.
  • Best practice for conducting pipeline views using the Target Tracker.

Let’s start.

Section 1

How the Target Tracker works in Salesforce

Sales rep targets in Salesforce

Here’s an example of a target record for a sales rep in Salesforce.

It’s the quota record for Dave Apthorp, for March 2020.

Dave’s quota for the month is $50,000. So far, he’s won $30,000. Consequently, he’s achieved 60% of his target.

Now let’s look at this pipeline coverage. We can also see that Dave’s pipeline for the month is $48,000. However, the weighted value of his funnel is $14,200. (Weighted pipeline is the Probability of each Opportunity multiplied by the Amount).

As a result, Dave’s Total Expected Revenue for the month is $44,200. That figure is the sum of Closed Won and Weighted Pipeline.

The result?

That means Dave’s pipeline coverage ratio is not high enough. Consequently, his Expected Variance against the target for the month is negative, to the tune of $5,800.

On the right-hand side, those numbers are all shown as percentages of Dave’s sales goal for March.

For example, Dave has achieved 60% of his target; his total pipeline is 96% of the target, and his Weighted Pipeline is 28% of his sales goal.

The chart further to the right shows Dave’s target performance.

As we can see, Dave has a shortfall against his quota.

Beneath this graph, the doughnut chart analyses Dave’s funnel for March.

As Dave’s manager, I should be concerned. That’s because more than half of Dave’s funnel for the month is still in the Qualification opportunity stage. A further quarter is still in Needs Analysis.

We need to ask:

Is it realistic these deals will close this month?

If not, then Dave’s sales performance versus target for the month is potentially worse.

 

Opportunity Conversion Rate Metrics

The Target Tracker provides valuable opportunity conversion rate metrics in Salesforce.

Conversion rates calculate by comparing the ratio of deals won to opportunities lost in the period. Here’s an example:

In this case, we can see that Dave has won three opportunities in March and lost seven.

That means his opportunity conversion rate in Salesforce is 25% by record count.

However, we also calculate the opportunity conversion rate by the value of opportunities.

For example, we can see that Dave has won $30,000. He’s lost $120,000. As a result, Dave’s opportunity conversion rate by value is 25%.

The conclusion?

Dave is successfully winning a higher proportion of large-value deals. We know this because his win rate by value is higher than his win rate by record count.

 

How Opportunities Link To Quota In Salesforce

Further down the page, we can see the Salesforce opportunities linked to Dave’s March Target.

These opportunities link automatically to the target. Consequently, everything is straightforward for the sales rep, with no additional work necessary.

If the Close Date moves, the opportunity automatically re-links to the relevant sales target. Again, no additional work for the salesperson.

Also, the Target Tracker makes it easy to see the essential, large deals that Dave must focus on to achieve his sales goal for the month.

In Section Three, we explain some of the customizations you can make to the Target Tracker. For example, you can use quarterly or annual targets. You can also use fields other than the Amount to compare opportunity revenue with quotas.

However, before that, let’s look at the Salesforce target dashboard included in the app.

Section 2

Sales Target Dashboard in Salesforce

The Target Tracker comes with a pre-built Salesforce dashboard containing twelve charts and reports.

You can modify any of these charts and reports to suit the structure of your own sales team.

Let’s look at several examples from the target dashboard.

 

Sales Rep Versus Target

You’ll recognize the first. It’s similar to the chart for Dave, showing his sales versus target for this month.

The dashboard chart compares the sales of all reps versus the target for the month.

In other words, the chart combines the quota, pipeline, and variance for all reps.

It’s straightforward to modify the report and create dashboard graphs based on territory, region, or another grouping.

In this example, we see a positive variance for two reps; and a shortfall in target performance for the two others.

 

This Month, Pipeline Analysis

This chart shows the pipeline due to close this month for all salespeople. As with the example for Dave, we can start to gauge whether the funnel is robust, and if our sales forecast is reliable.

Drilling down to the detail, we can identify opportunities that might let our sales forecast down.

Now, we can start to question these deals and potentially move them to a later month.

 

Sales versus Target This Year

This dashboard chart shows the month-on-month performance for the whole year.

It’s an effective way to know whether there is enough pipeline coverage for the upcoming months. The chart also shows clearly how your team has performed against its month-on-month sales goals.

Like all the charts and reports, you can easily fine-tune it to show information based on the individual sales rep, team, or territory.

For more information on exceeding Year-End targets, here’s an article we produced specifically on Q4 Sales Strategies

 

Sales Rep Conversion Rates

The Target Tracker captures the opportunity conversion rate for each salesperson.

The conversion rate dashboard chart shows the win-rate by value and number of opportunities. These metrics are highly-valuable for identifying training and development opportunities.

Measure Sales Performance Versus Target

Interested in this app? Get in touch with us today

Section 3

Tailor the Target Tracker to your business

Here are some of the ways to can adapt the GSP Target Tracker to the specific needs of your business.

  • Monthly, quarterly, or annual sales targets.
  • Use a custom field instead of the Amount.
  • Exclude certain types of opportunities from the target roll-up.
  • Modify the reports and dashboards based on your sales structure.

We explain each one below.

Incidentally, if you have a business need that we haven’t listed here, then what you should do is very simple: get in touch to talk to us about it.

 

Monthly, Quarterly or Annual Sales Targets

By default, the Target Tracker uses monthly sales quotas. Remember, reports and dashboard charts can summarize monthly targets for each quarter and year.

However, you can instead set the Target Tracker to use quarterly, or even annual quotas, if that’s how sales performance measures work in your business.

It’s a simple process to make this change. We explain the steps very clearly in our setup guide.

 

Use A Custom Field Rather than Amount

Not all companies use the Amount field on the opportunity to measure the size of a deal.

For example, Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR), and Margin are all examples of fields that represent the value of a deal.

In these cases, it’s the value in the custom field that must be compared with the sales target.

The Target Tracker can do this.

We need to adjust some settings within the app and modify the reports and dashboards. We offer a free service to make these changes for you. Simply get in touch, and we’ll identify what you need.

 

Exclude Certain Types of Opportunity

Sometimes, not all opportunities should count against the sales target.

For example, perhaps renewal opportunities are not included in measuring sales versus target.

You can do this quickly in the Target Tracker. All you need to be able to do is set up a workflow rule in Salesforce. Again, we explain step-by-step how to do this in the setup guide.

 

Modify the Salesforce Target Dashboard

Many sales teams organize by territory, region, or another segment.

However, the pre-built reports and dashboard charts measure sales versus target for all salespeople. In other words, the charts are at the company level.

That’s because we can’t predict or foresee how each sales team is setup.

Fortunately, that’s no problem. You can easily modify the standard reports and dashboards to reflect your sales team structure. Simply create a copy of the report (using the Save As function) and adjust it based on the sales team organization in your business.

Section 4

How to buy the GSP Target Tracker for Salesforce

Here’s how to take a free 14-day trial of the Target Tracker. You can try it for yourself to see the sales management benefits your business.

All you need to do is visit the AppExchange Listing for the Target Tracker.

Click the Get It Now Button and follow the instructions. 

From the Listing you can also:

  • See what other people think about the app.
  • What a video showing how the app works. 
  • Set more screenshots showing the Target Tracker in action.
  • Read the setup guide.

Don’t delay, take a trial today!

 Any other questions about the GSP Target Tracker?

Get In Touch Below

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4 Ways To Measure Revenue Against Sales Targets In Salesforce

4 Ways To Measure Revenue Against Sales Targets In Salesforce

Many executives get very frustrated, trying to measure sales versus target in Salesforce. Perhaps you're one of them. Like others, you may even have searched in vain for the Targets tab. (If you're still looking, stop now; it doesn't exist). Fortunately, if you want...

How To Measure Sales Versus Target In Salesforce (2020)

How To Measure Sales Versus Target In Salesforce (2020)

If you want to track sales versus target in Salesforce, there's a superb app that empowers you to do it. It's called the GSP Target Tracker. Here's a summary of the essential things the Target Tracker helps you do in Salesforce: Compare rep, team, and company sales...

Popular Apps

GSP Target Tracker

Track targets in Salesforce including won and pipeline deals

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How to Outperform Your Sales Targets Using Commission Tracking

How to Outperform Your Sales Targets Using Commission Tracking

Motivate your sales people to exceed targets by using commission tracking in salesforce.

Commission tracking drives sales people to close deals.

It motivates them to create new pipeline. It propels them to go the extra mile to win a piece of business.

But it’s not just about the money.

Sales people are highly motivated. Commission tracking is a way of keeping the score. It’s a way of comparing sales performance with the previous month or quarter. It’s how sales people measure this quarter with their personal best. It’s how they know they are winning.

So the greater the visibility of commission earnings, both actual and potential, the greater the motivation for sales people to increase revenue.

So commission tracking is important to you (sales manager) to drive business performance – but it is paramount to the sales person.

But unfortunately there’s no out-of-the-box module for commission tracking in salesforce.

So at GSP we created one.

Here’s how it works.

 

Commission levels

Managers set up records in salesforce that define how much commission each person should receive for each level of sales revenue.

Set percentages for each commission level in salesforce.

For example, the screen shot above shows the commission levels for Dave Apthorp for February 2016.

Dave will earn 2% commission on £1 to 50,000 and 4% on all sales between £50,0001 and £75,000.

If he has a particularly good month, Dave will earn 6% on all revenue over £75,000 with no upper limit.

Defining the parameters at this granular level (i.e. by person, month and sales level) gives major flexibility. It means that a commission structure that will best motivate the sales team can be created.

It also means there’s the opportunity to introduce kickers for individual months by increasing the percentages for that month. In this case, for example, we might raise the commission percentages for March to make sure we end the quarter with a bang and outperform the sales target.

There’s also the option to create commission levels related to product families. This means percentages can be varied based on margin or the gross profit associated with each type of product.

 

Measure Sales Performance Versus Target

Interested in this app? Get in touch with us today

Commission tracking in salesforce

The screenshot below shows Dave’s commission tracking record in salesforce for February.

Commission tracking in salesforce.

The highlighted box shows his:

  • Commission Earned. This is based on the opportunities he has closed this month.
  • Pipeline Commission. The total amount Dave would earn if he closed all the deals in his February pipeline.
  • Total Potential Commission. The sum of Earned and Pipeline Commission.

Dave’s opportunities that are due to close for this month are automatically linked to this commission record. We can see these at the foot of the screenshot.

This linkage between the opportunity and the commission record is done by a trigger that runs every time an opportunity is updated. If Dave edits an opportunity, for example by moving the Close Date on a pipeline opportunity to the following month, then the relevant commission records will be updated.

The in-line chart on the left of the page shows how much Dave has earned for the month on won deals (blue bar). It also shows his potential commission (green bar) and his total potential earnings (orange bar).

The chart on the right provides more analysis of Dave’s pipeline deals. He can immediately see which of his open opportunities will yield the most commission.

For most sales people, this commission tracking in salesforce is a proven way of focussing attention. Align the commission structure with your corporate sales objectives and you’ve a built-in way of driving sales performance.

 

Commission reporting in salesforce

This approach means commission tracking reports can be created in salesforce for managers.

Sales managers in many of our customers use these reports to motivate and encourage individual sales reps. The automated commission tracking visibility also saves (probably you) countless hours updating and sharing spreadsheets across the team!

Commission tracking isn’t just about the money. It’s a way to keep the score. And now you can keep that score in salesforce.

If you have a question, or you’d like our help in implementing a commission tracking solution in salesforce in your business, simply get in touch.

 

Awesome Pipeline and Sales Performance Visibility

Download the FREE Dashboard from the AppExchange today

Don’t miss out on our most popular Salesforce App to date…

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4 Ways To Measure Revenue Against Sales Targets In Salesforce

4 Ways To Measure Revenue Against Sales Targets In Salesforce

Many executives get very frustrated, trying to measure sales versus target in Salesforce. Perhaps you're one of them. Like others, you may even have searched in vain for the Targets tab. (If you're still looking, stop now; it doesn't exist). Fortunately, if you want...

How To Measure Sales Versus Target In Salesforce (2020)

How To Measure Sales Versus Target In Salesforce (2020)

If you want to track sales versus target in Salesforce, there's a superb app that empowers you to do it. It's called the GSP Target Tracker. Here's a summary of the essential things the Target Tracker helps you do in Salesforce: Compare rep, team, and company sales...

Popular Apps

GSP Target Tracker

Track targets in Salesforce including won and pipeline deals

Popular eBook

Download The 12 Must-Have Dashboard Charts

This fully-illustrated 27 page ebook shows you the 12 Killer Sales Charts for your Dashboard and explains How to Read Them and When to Use Them.

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How To Compare Your Sales Funnel With Quota In Salesforce

How To Compare Your Sales Funnel With Quota In Salesforce

Many managers that use salesforce are still not gaining the sales funnel insight they expected.

In particular, they want to know much more about how the sales funnel compares with their quota.

Sure, they’ve got salesforce dashboards set up. These give visibility of the sales funnel and sales performance. But its still a challenge to create a robust sales forecast.

That means they can’t use salesforce to get a definitive answer to that most fundamental of questions.

Is my sales funnel big enough to make my quota?

But it’s worse than that:

Knowing you’ve enough sales funnel to make your quota for this month is one thing.

However, what if the sales funnel only contains early-stage Opportunities? Deals that may take two or three months to close. How confident can you be then of achieving this months’ quota?

Fortunately there’s a sure-fire way to use salesforce.com to know whether you’ve enough sales funnel – of the right type – to meet your sales quota.

Not just the quota for this month.

The quarter’s sales quota too. Indeed, businesses that track the sales funnel in salesforce in the way we describe here, get a clear picture of how likely they are to achieve annual, quarterly and monthly revenue targets.

Here’s how it works. And when you’re done watch the accompanying video.

Monthly Sales Quota

First you need a new custom object and a new tab. Let’s call it Monthly Sales Target, although it doesn’t really matter how it’s named. If Monthly Sales Quota, Revenue Objective or Monthly Sales Forecast make more sense in your business, that’s fine.

The Monthly Sales Target stores the sales quota for each sales person for each month. There’s a record in salesforce for each sales person for every month of the year. If you track performance against quota on a quarterly, rather than monthly basis, that’s fine. There’s simply going to be four records per sales person per year, rather than 12.

The ‘Month’ and ‘Year’ fields on the Monthly Sales Target tell us the time period to which the quota relates.

Here’s the most important field, Sales Target. This is the target or quota for the sales person for that month. Every month may have the same Sales Target figure, or they can vary to reflect seasonal trends. It’s up to you.

Compare Sales Funnel to Monthly Sales Quota

Here’s how you know whether there’s enough sales funnel to meet the Sales Target figure.

You need some code that automatically links each Opportunity to the relevant Monthly Sales Target. You can either build the code yourself or you can purchase our pre-built target tracker app.

Here’s what the code does.

It looks at the Opportunity Owner and the Opportunity Close Date. Then it links the Opportunity to the Monthly Sales Target that matches the Owner and the From / To dates.

Link the sales funnel Opportunity to the Monthly Sales Target to compare with quota.

If the Close Date subsequently changes, then the code ‘unhooks’ the Opportunity from that particular Monthly Sales Target and links it to a new one.

Measure Sales Performance Versus Target

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Sales Funnel Metrics

Next, the code ‘rolls-up’ the value of all Opportunities to the Monthly Sales Target.

These metrics indicate whether the sales funnel is big enough to meet quota in salesforce.

Critical metrics on the Monthly Sales Target help you understand whether you’ve enough sales funnel to meet your revenue quota. These include:

  • Won Amount. The value of all Opportunities that have an Opportunity Stage of Closed Won.
  • Funnel Amount. The value of all Opportunities in the sales funnel.
  • Weighted Sales Funnel. The value of all Opportunities in the sales funnel, based on the Expected Amount (the Opportunity Amount multiplied by the Probability).
  • Expected Revenue. The value of Closed Won Opportunities plus the Weighted Sales Funnel.

In many businesses, this last one is a killer metric.

Expected Revenue

The Expected (or Weighted) Revenue figure shows whether this sales person has enough sales funnel, combined with the business they’ve already closed, to meet their sales quota.

In our example above, the month target is £30,000, but the Expected Revenue is just under £25,000. We don’t have enough! This is emphasized in the percentage figures on the right. The embedded chart also shows a shortfall in the sales funnel compared to quota.

But there’s more to it than that.

Sales Funnel Shape

Look at the chart to the right of the salesforce page. It provides more detail on the sales funnel Opportunities associated with this Monthly Sales Target record.

Look at the Monthly Sales Target for the current month. Let’s say your deals typically run through a 90-day sales cycle. That means you don’t want to see many deals forecast to close this month, in the Prospecting Stage. It’s likely these deals aren’t going to close in the current month.

On the other hand, if it’s the Monthly Sales Target for three months’ time, then look at the sales funnel shape. Lots of early-stage funnel Opportunities due to close in three months is probably a good thing.

Sales Funnel Dashboard

However, what about the company or team-level sales target?

Here’s how we find out if the sales funnel is big enough to meet these revenue targets.

The dashboard chart and underlying report give us that information. And using Expected Revenue, the reports give us a robust sales forecast. One that will stand up to detailed scrutiny.

Sales funnel compared to quota using a salesforce dashboard.

Of course, none of this replaces the need for proper sales funnel management.

The Opportunity Probability still needs to be reliable on each deal. However, it does give the sales manager the tools necessary for effective sales funnel management.

This is especially the case if the Monthly Sales Target reports are used in conjunction with other salesforce dashboards and reports that identify the poor quality deals. These are the deals that over-inflate your sales funnel. Weed out the lame ducks that give a false sense of future revenue.

And finally, get in touch today if you’d like to test drive our target tracker app for yourself.

Watch me demonstrate the salesforce funnel management solution described in this blog in this video.

12 Must-Have Charts For Your Salesforce Dashboard

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