Meeting your sales goals isn’t just important for making your reports to corporate. It’s a key strategy for motivating and empowering your team. But it also isn’t easy. And it shouldn’t be. We’ve put together a few tips on how to meet sales goals in retail, and why it’s important to plan your goals well.
Everyone loves to see a strong sales month, but goal setting is not just about your bottom line. In 1990, researchers Edward Locke and Gary Latham published their findings that goals positively affect behavior, job performance, and daily energy levels. Your team will be more motivated throughout the day if you work with them to set real, concrete goals.
So how do you set and meet sales goals for your store? Here are a few ideas.
Kevin Graff of Graff Retail gives us an idea of where to set this sliding goal scale. “Goals should be achieved at least 70% of the time. If not, they’re too high and risk de-motivating your staff. By the same token, if goals are achieved 90% or more of the time they’re too low and aren’t pushing your staff.”
This doesn’t mean that you can’t set long-term, lofty goals like becoming the #1 store. But you can balance them with smaller monthly, weekly, or even daily goals. Your staff should always be feeling the motivation of achieving their goals and pushing toward the next.
Keep it simple: Simple sales compensation plans are cheaper, easier to administer, and yield better results than complex plans.
Restaurant industry consultant Jim Sullivan has found that suggestive selling works 58-72% of the time. Granted, in the restaurant business, it’s easy to say, “Would you like to supersize that?” But the tactic can be easily transferred over to any retail operation.
Did you know that some HDMI cables are better suited to 8K? Or that a certain grade of cable is required if you’re planning to run that cable through a wall? If a customer drops $1800 on a TV, the obvious suggestive sale is, “Do you have all the cables you need?” But sales reps with solid and constant product training will know which products to suggest. Then you’ve got yourself a slightly higher margin for each sale you make.
We don’t mean metaphorically. You should have a way to visually display your short-term sales goals so your team can constantly keep an eye on them throughout the day. Each uptick creates a satisfaction stimulus. When a sales rep sees her own sale kick the daily meter up towards its goal, she’ll be more motivated to do it again or use suggestive selling to pump those numbers up.
This doesn’t just work for individuals. It builds team synergy, as well. Seeing your impact on the team’s goals comes with its own motivation. Psychologist Adam Grant has dubbed this phenomenon prosocial motivation, an element of a worker’s engagement when he can see the positive effects of his work on the lives of his peers, which motivates him to work harder.
Setting and hitting sales goals are essential strategies to retail success. Whether you’re broadcasting your goals to the whole team, boosting your product training toward better suggestive sales, or posting online goal tickers, Arcade can help you with that. Check out our infographic on upselling in wireless retail, and schedule a time to talk with us about optimizing your goal orientation.