Sales Target
What is a sales target?
It is essentially a sales goal. It is most often defined by the revenue amount that we want to achieve within a specific time period. By design, the target is meant to focus the team on achieving the goal and help in planning activities for the near future (the period for which the target is set).
What risks can setting a sales target carry?
- Dishonesty, or “selling on paper.” Have you heard of corrective invoices? A customer persuaded by a salesperson may accept an invoice for a larger quantity of goods than they actually receive. All so that the “numbers add up.”
-
Mass selling with huge discounts. When there is a significant shortfall at the end of the billing period, the salesperson decides to sell at any cost. They offer very large discounts just to close the sale. But can your company afford such large discounts?
-
Decline in sales department efficiency. How can you focus on work and operate efficiently when you constantly have looming deadlines and missing numbers at the back of your mind? The stress caused by the pressure to meet the target can negatively affect the salesperson's work efficiency and cause negative psychological effects.
Read also:
Useful links:
https://harbingers.io/definicje/target
https://www.wiadomoscihandlowe.pl/artykul/ciemna-strona-targetow