Sales & Revenue Targeting
Monthly Sales Revenue VS Targets
Overview
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Historical Sales Performance
Historically, sales have been spikey and sales goal attainment has been inconsistent. Over the last three years, sales and growth has been somewhat flat. Contributing reasons include the pandemic’s impact on retail, the substantial penetration in Verizon, and the unaddressed need to expand into both broader wireless and other segments. That said, closing rates, retention rates, and client support levels have been very high.
Expected Performance From New Approach
The new approach is expected to increase pipeline volume and diversify in our client base. With that breadth, it is expected that conversion ratios from demo to trial to closing will trend down towards industry averages. A wider package offering and lower entry prices are expected to shorten sales cycles and increase the referral rates within newly established hunting grounds. The expectations are as follows: sales cycles should decrease from 6-12+ months to approximately 3-4 months; Demo-to-trial conversion rates should increase from 25% to 40%; Trial-to-close ratios should decrease from 90% to 60%.
Revenue By Product
Our core product will remain the primary focus and source of growth with a projected 74% of sales, predominantly through new logos. Expansion sales in the installed client base is targeted at 36%, split evenly between ReBiz SMS Outreach (18%) and penetration of undeployed locations (18%).
Revenue By Channel
Until the transition is made to a hybrid online and direct sales approach, all sales will be through the direct selling channel. Lead sources are being diversified and will include: referral programs, event attendance, direct outreach campaigns, regular webinars, partner promotions, LinkedIn networking and posting, and inbound marketing. Initiatives to expand sales channels include portal updates to promote undeployed products, a website relaunch and product-led growth offerings. By 2026, we are targeting a mix of 50/50 (online/direct-sales) for both first product purchase and addon product purchases.
Revenue By Rep
Annual quota of newly added MRR per rep is 83.3k ($1M). As the sales team is expanded, the revenue by rep will socialize over a team of 4-7 reps with revenue per rep dropping to under 25% each. Territories will be additionally defined to focus reps on key expansion segments and deal types.
Revenue By Source
During phase one of expansion, the primary revenue sources will be: referrals and relationships, partnerships, event attendance, and outbound campaigns. Phase two of expansion will leverage these as well as ABM (account based marketing) and brand awareness building. Phase three will introduce inbound and lead funnels for online sales conversions and promotion to sales engagement.
Sales Goals and Objectives
The “Sales Goals and Objectives” section is crucial as it sets the specific targets the sales team needs to achieve. This section should be detailed and clear to provide direction and focus. Here’s a breakdown of what this section should include:
1. Annual Sales Targets
- Overall Revenue Goal: The total revenue the company aims to generate by the end of the year.
- Growth Percentage: The expected percentage increase in sales compared to the previous year.
- Profit Margin Targets: Specific goals for maintaining or improving profit margins.
2. Quarterly/Milestone Goals
- Quarterly Revenue Targets: Revenue goals broken down by each quarter to track progress throughout the year.
- Monthly or Milestone Goals: Smaller, incremental goals to keep the team focused and motivated.
3. Product/Service Targets
- Individual Product Goals: Sales targets for each specific product or service offered by the company.
- New Product Launches: Targets for new products being introduced within the year, including expected sales volumes and revenue.
4. Geographical Targets
- Regional Goals: Sales targets for different geographical regions or markets.
- Market Expansion Goals: Targets for entering new markets or regions and expected contributions from these areas.
5. Customer Segment Targets
- Customer Acquisition: Goals for acquiring new customers, including specific numbers or percentages.
- Customer Retention: Targets for retaining existing customers, often measured by churn rate reduction or customer lifetime value.
- Customer Segmentation: Specific goals for different customer segments (e.g., small businesses, enterprises).
6. Channel-Specific Targets
- Direct Sales: Revenue goals for sales made directly by the company’s sales team.
- Partner/Reseller Sales: Targets for sales made through partners or resellers.
- Online Sales: Goals for sales generated through the company’s website or other online platforms.
7. Key Performance Indicators (KPIs)
- Sales Growth: Monthly or quarterly sales growth percentages.
- Conversion Rates: Targets for improving lead-to-customer conversion rates.
- Average Deal Size: Goals for increasing the average value of each sale.
- Sales Cycle Length: Targets for reducing the time it takes to close a sale.
- Customer Satisfaction: Metrics such as Net Promoter Score (NPS) or customer satisfaction ratings.
8. Strategic Initiatives
- Market Penetration: Goals for increasing market share in existing markets.
- Product Development: Sales targets related to new product development or enhancements.
- Strategic Partnerships: Objectives for forming partnerships that can drive sales growth.
9. Resource Allocation
- Sales Team Targets: Specific targets assigned to individual sales team members or teams.
- Budget Allocation: Outline of budget distribution to support achieving sales goals, including marketing spend, sales tools, and training.
10. Review and Adjustment Plan
- Regular Review Schedule: Planned dates for reviewing progress against sales goals.
- Adjustment Mechanisms: Processes for adjusting targets and strategies based on performance data and market changes.
By including these detailed elements, the “Sales Goals and Objectives” section provides a clear roadmap for the sales team, aligning their efforts with the company’s strategic goals and enabling precise tracking of progress and success.