Sales target setting in B2B

We recently created 2 interfaces to better handle your sales.

They look the same but are actually different.

One helps in monthly sales target setting for sales executives – split by product categories (lines).

Sales Target Setting in Saleswah CRM


The other helps in forecasting the potential business from every “Account”- client organization that you are selling to.

From the questions we get, I guess folks easily get the 1st one- it is the second one that takes time getting used to.

Conceptually, we need to differentiate between target and potential.

Target is what a salesperson lives by. He is measured on target. Month on month, quarter on quarter. Set a target and achieve it.

Potential is different- some call it total addressable business, in the B2B scenario.

As an aside, what is Total addressable business? All know of Total Addressable Market- which is basically the value of all the potential business you can generate from your product from its target market. This is assuming there was no competition and the entire pie was for you to grab.

The total addressable business- potential- is the revenue potential for your product / service in a particular client account assuming there was no competitor.

Why have this? Two reasons I say:

  • sales target setting should not happen in a vacuum. It should be done with careful planning, and some hard numbers backing up hunches and gut feel. Carefully listing your potential in the market you are going after, comprising accounts – will help you set realistic goals.
  • resources, that is sales executives can then be better aligned to markets with more potential – and of course they can be supported better too with marketing.
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