Territory sales targets are often used for reward and recognition of sales people. It is no wonder then, that one of the biggest issues in setting territory sales targets is actually achieving salesforce buy-in to the methodology and fairness of setting their cash sales target. Indeed there are numerous ways that have been used in the past to try and encourage this buy-in, all of which may or may not have been appropriate at the time.

 

We do believe that setting sales targets is not a complete science and is still an art. However, we have now developed a more scientific methodology that sets sales targets based upon the territory potential and current growth. It uses tried and tested methods, is seen as being fair and is accepted by the salesforce.

 

It is based on the premise that “territories should not be penalised for having previously performed well”. A territory who, historically, has an above average market share and/or below average market growth should not be expected to grow in the future as fast as a territory with below average market share and/or above average market growth.

 

Using Excel™ we have developed a set of spreadsheet algorithms and graphics which will facilitate accurate target setting, allow for management adjustment, and buy-in from the salesforce.

 

Territory Sales Targeting:

• Analyses historical sales results based upon market potential and market growth

• Applies mathematical algorithm to calculate territory sales targets based on computer generated growth factors

• Identifies gaps between sales forecast and sales target

• Graphically represents the historical sales, forecast sales and target sales

• Allows for manual change due to local knowledge

• Prints out targets in required format

• Ensures uniformity and consistency of sales targeting methodology across products

 

Contents·

• Computer program in Excel™ based on initial client brief

• Production of phased sales targets

• Identification of anomalous territories

• Manual target amendments based on local knowledge

• Graphical representation of historical sales, linear regression forecasts and sales targets

• Consolidated printout of territory, phased sales targets

 

Logistics

Following a briefing from the Client Company, we build a customised Excel™ workbook to calculate the territory targets, including graphics, appropriate algorithms, variance analysis and print files.

We then input the historical sales and market data, input the nationa

This process can take anywhere from one week to one month depending upon the level of project complexity and number of client manual amendments required.