The principles of sales goals and how to manage employees

This text file is taken from the words of Mr. Ziarkolai, which is included in the educational podcast of Arad Branding.

You can follow more tutorials by visiting the educational podcast page.

Greetings to all economic activists.

I hope that wherever you are in Iran, you are doing well.

Today we want to talk about target sales.

What is the target and how all organizations try to increase their sales.

What should be done?

Be careful, dear ones.

All organizations that have a sales department and it consists of one person to several people have a factor or a performance evaluation index that has specific targets.

What does target mean?

It means setting goals, it means that we determine exactly how much we should sell this month, the next month, the coming months, even this year.

What is our plan for the next year? All of this is targeted. Ther are organizations that are working without a plan, and you can see exactly their businesses fail. They do not have any goals at all and they have not planned how much to sell.

He says as much as God wants.

God wants ok, but how much have you specified?

When a person does not specify, it means that he does not have a plan and fails in business.

Ask all those who failed in their business if they are at all familiar with the concept of sales targets and what targets they defined for themselves.

You can see that not only have they not heard or do not know this concept, but nothing has been done about it at all.

If you want to be among the winners and you are among the people who win in business, then take this matter seriously.

The sales target is a number that you specify, and for example, how much are you going to sell this month?

For example, you say that I am going to sell two hundred million tomans.

I will sell five hundred million tomans and I will sell one billion tomans.

So we specify a number.

Based on your own records, this number should not be a low number that you get the target for a few days and then say, wow, the target is over, now I will go to continue my fun.

If you remember, many of you, like me, when you were in school, we had a Nowruz homework during holiday that was delivered to us before holiday, and this was our target and we had to finish it.

Unfortunately or fortunately, it would not end.

It means that you were working on it till the end of holiday.

A target was actually set for us so that we would not be blown away by the fact that we are off for these fifteen days and unfortunately we did not have such homework often during the three months of the holiday.

It means that as students, after 3 month holiday in summer we were studying for nine months, we were always shocked when we went to school in the beginning of the year.

It was very difficult for us because that initial and intimate connection we had with school was gone.

It is exactly the same in business.

It means that you go around the world and you see that many advanced countries do not have a three-month holiday at all and it makes no sense.

Be careful, you must define a target for yourself in the business you have.

A target is something that is higher than your limit and you should try to reach it.

For our team in Aradbranding, which has more than two hundred people in different units both in the internal market and in the export market, and each member has specific targets.

For example, one has a target of one billion, one has a target of two billion, one has a target of five hundred million, one has a target of two hundred million, each one's target is based on his abilities, his work history and what numbers he has been able to sell in the past, which is all important and you should know that all companies have a successful target.

So you should define such a target for yourself and for your team members, but what is the formula and if we do not reach these goals, where does the problem come from?

Friends, write down the formula.

Sales of the current period, that is, what you are going to sell this month, divided by the sales goals, that is, how much have you sold in the current period, for example eight hundred million?

Eight hundred million is accepted, now specify the goals, for example, you have set a target to sell two billion, and so far you have sold, for example, eight hundred million, multiply by one hundred, because we want to get the percentage, so it is clear that a certain person should have a to sell a billion, one must sell two hundred million, we have defined our goals.

We have set a target for him, and the target is the number that I said and I emphasize that all business owners should remember this part.

You should not put a number that takes three days, one week, or two weeks to reach that target, that is, if you feel that a certain person will skip the number in one week, he will touch the target and reach it.

I will say some synonyms for you to understand and when that person can reach that one week, we should consider four times for him.

We should consider five times this number, even for him, it is not a strange number, like what his sales were in the last year.

He could never sell 600 million tomans, then you set a target of 3 billion tomans for him.

He can never touch it at all, he has no hope for it at all, and he says that it's completely unattainable and I won't reach it, and the question is what will happen if I reach it?

That means you should also consider prizes or incentives for the targets.

Now what if you don't get the target?

You should also consider punishment and these two things are together, dear ones, don't think that we only have punishment and no encouragement.

I see some companies only punish or some companies only have an incentive that if you succeed, you will get so much.

What if I don't achieve?

Nothing, you set a lower target, there is no problem, you will get a lower target salary.

There must be a punishment that gives me strength, that I am eager and that gives me a movement at all.

It will motivate me and actually be able to try to reach the number and benefit from the encouragement.

So each of you, if you were our subordinate in Aradbranding, we would set a target for your sales and business, but many of you want to be independent.

In fact, you want to have your own business and be the manager yourself in the future.

Some of you have power now or some of you want to get power in the future, so you should also learn the principles of management and know what to do in bussiness.

So, have you understood the formula of what the story is?

Now the question is, if we set a target and people did not arrive, or for example, he says, 20% of people got the target or 20% did not get, these are situations that you, as a manager, should be able to analyze.

For example, I set a target and see that only twenty percent could not pass this target, and the rest of the people get their target.

They set targets, for example, if it was the first month of work, it has a number, for example, it says to sell this product for 50 million tomans.

If I see that, for example, I set a target in the second month, you have to sell, for example, one hundred and ten million tomans, which means that it is not double.

If it is double, you should sell more than the previous month.

For example, if it is the third month, what is the number like?

You have to sit and plan these carefully and reach a target number right in your business.

Sometimes he says that for example he is in the business of selling mobile phones.

A mobile phone sold has hit fifty million sales.

I say, well done, then determine how many mobile phones it should sell per month, and if it sells that much, how much will it be?

So what is his target?

Now consider the incentives for him and consider his salary, is it worth it for him to stay?

In the following months, have you planned for him to grow or not?

Specify these.

If today you are your own power, that means you are working alone and you should give yourself encouragement and what could this encouragement be?

I don't know if there are companies that, for example, give cinema tickets, swimming pool tickets, sports halls, and send domestic or foreign leisure trips based on their brand.

See how much money you have and can spend on yourself.

These things I said were not just for you, because I am myself, I spend so much on myself.

Do you really think that if there was an employee, you would be willing to do this work for him?

Don't do just for yourself and not for someone else!

For example, I give my emploee just an ice cream but, I spend more for myself. Do not be like this and put yourself instead of your own employee.

Now, if I sell, it is the same for me, that the encouragement can sometimes be cash, that money is often attractive to people, but it does not create a loyalty to you.

That means, for example, you buy pool tickets if 10 people go, or you buy cinema tickets if 50 people go.

In fact, a good mood also happens to the whole team, you convey this good mood to them, and in fact, their mood improves.

These should be considered while for other businesses you have actually been profitable.

The people that goes to the cinema, the owner of the cinema will also benefit and a better situation will be established in the whole country, so be aware of all these things.

So I understood that if 20% or even 30% couldn't get the target, here I say the problem is with the same people who couldn't because 70% of the team, 80% of the team get the target, so I have set the target structure correctly.

The 20% that didn't get the target or the 30% that didn't get is a weakness in the sales employees.

Weakness is in the negotiating employees, they should be corrected.

Sometimes you see that you have set the target with high numbers and only ten percent reached it and ninety percent could not reach that number at all.

Here you should review a little that those people you said sell but didn't, you should not have accounted on them and you thought they had high capabilities and today they themselves proved that they don't.

Like these people who are athletes or world champions, they can lift a hundred kilos or more.

He has been in this profession for a month and you give him a weight of 200 kilos, then you tell him to lift it, even though this is not his weight at all.

He cannot do such a thing at all.

Therefore, in management, you become empowered and you understand that a person who does not have expertise and does not have skills.

I should not count him in, for example, can I open an account on people who are this type and are this model, who love business?

Learn these in business school, God willing.

Dear Engineer Ghorbani, they taught a lot of management discussions, and you should definitely follow and see, and God willing, you will move things forward properly.

But the issue that is still important is related to the monitoring of sales performance.

Now, should I wait and see at the end of the month if the targets have been gotten, or should I check every day?

Look, when you decide whether for yourself or for your personnel, you should have performance statistics every day and not say that I should wait until the end of the month to give him a chance, and not have anything to do with him for another month if he get the target or not?

If he gets, then he will be blessed, and if he doesn't get, then I want to punish him now?

No my dear, that's not how management is at all, you have to do like a football coach.

You should do like a sports coach.

what does it mean?

It means that the coach should come and sit in a corner and then say, well, now we have ninety minutes.

Football is 90 minutes, and for example, let me sit down. Now that the 90 minutes are over, we won.

We didn't won, I want to fight with my team and change the strategy?

no.

He is observing moment by moment, that is, the coach stands and sits on the side with the players and checks for a moment, and the CEO of the club should be in the same way.

I mean, it's not like I have 90 minutes, now, in the name of God, start.

No, they are also watching for a moment, they can't wait for a year to end and then say, well, now it's the end of the year, did we become champions or not?

No, they monitor month by month what have you done this month?

I mean, they can't wait to see what the end of the season will be?

No, he wants a report every month and a performance report, what did you do?

I said that when you say to be my teacher, whatever you say, I will tell you that it needs a plan.

Sometimes you say no, just teach me.

He doesn't want you to be a coach. I am my own coach.

I am a self-made person who can manage my own affairs without anyone being on top of me.

This is on your own.

All of you have experience, and in the past, what was the result of the things you did with a coach, and what was the result of the things you did without a coach?

Many people sign up for a English class and go to class for a month and then stop.

You should have signed up for a one-year class.

What happened that you let go?

He sign up in different educational courses in the same way, calligraphy class in the same way, art class in the same way, sports class and club.

A month goes by.

It takes two months.

He let it go.

You said that I want to continue for one year.

So check if you want a coach who will push and shake you and improve you or not?

You are a truly self-made person who can stand on your own feet and get things done.

So be aware that performance monitoring has its own structures.

God willing, in the next files, I will also talk about the issue of monitoring sales performance, all companies and people who build systems and have large companies and even sometimes small companies, how to manage their sales units.

But many people ask if there is a software that I can manage my employee?

Yes, I think the training course has three or four sessions in the business school where we explained customer relationship management and CRM software.

Professor, tell us what software to buy?

I explained the Excel software that is available for free.

There are many paid softwares on the internet as much as you want.

There is CRM software from Microsoft itself, which is the largest customer relationship management software, which is high in proportion to its price, and if you have a large company, you can use this program, and there are also Iranian programs.

The program is smaller, stronger, I won't mention the name, I don't want it to be a brand advertisement that you can tell me later, do you have a contract with this company, will the money go into your pocket or not, whatever you want.

Whatever program you feel more comfortable with and think is more useful for you, use that program as a customer relationship management software so that you can actually manage your customers, your employees with it.

But again, they ask a question apart from the discussion of targets regarding customer conversion rate, how many customers should I take money from?

How do I know who is stronger in sales?

Is the criterion just a target?

I say no.

what does it mean?

It means that a customer visits that person's website, clicks on his post, approaches him, and this customer buys a billion items at once, while normally, most customers would buy items from you for a hundred million.

They bought two hundred million, five hundred million.

Now consider he said that my average sales were twenty tomans for each person who bought, and I found one customer who suddenly buys one billion. in this case not only I get your target but also I pass over it.

Your sales emploees understand these issues because they are actually in contact with your customers, then they consult with you that, sir, you have set a target of 500 million for me, what will happen if I sell 1 billion this month?

Why does he say this sentence?

Because he knows someone else to work with.

It is in relation with the customer that the person said, for example, I want to buy a billion.

This force starts to negotiate with you and stay informed. Does this person not say that I want to try harder to hit the target?

I will say when it is accepted that you have made a billion this month and what will happen next month and the months after that?

I will set a target of 1 billion this month, can you sell me 2 billion the next month or not?

You, whose target was 200 tomans, and this month you take a chance at one time, and again in the following months, you want to stand for me on the same 200 tomans?

Professor, am I correct in saying that more effort leads to more fruit?

I say yes in the sales department.

what does it mean?

Where there is a wish, there is a way.

That is, the one whose target was two hundred million can make it double to four hundred million.

This person can.

This talent is in him.

First, he must move his hand and his efforts must be increased, and he must learn to negotiate better, which means that he knows only ten percent of the rules of negotiation, and he gets this target.

This ten percent will reach twenty percent and his target will increase and thirty will become fifty in the same way, that is, the more powerful a person becomes in negotiation, the more his sales will increase.

But the formula of the conversion rate, the number of customers who take five people, ten people, twenty people, how many people can take money from?

Divide by the number of leads, the lead we explained, and by the number of customers assigned to him.

Sir, I gave you fifty customers this month.

How many people did you take money from?

Multiply it by one hundred.

So, the number of customers that are taken money from is divided by the total number, which is our lead, and multiplied by the number of 100, which is the percentage.

Sir, this month, we gave you a hundred customers, and you took money from three of them, which means that only three percent have the ability to take money.

It is functioning very poorly, but it has sold to three people, for example, five hundred million, which is one and a half billion.

Another one sells 200 million, but we gave him 100, and he turned 50 into money.

Which one is better?

Someone who earns fifty is a stronger person, but for example two hundred million or not, should we give him one hundred and convert three to five hundred million into money?

These are very important points.

Who is the most capable teacher?

Who can grow the most?

What should he do to increase his sales?

Will it be more profitable?

What encouragement should we give him?

All of these are management issues in the discussion of sales, which, God willing, we will talk about all of these issues in the next meetings and our loved ones will learn.

I hope this file is useful for you.

I leave your plans to God.

O Ali, have a nice day.