Q: How Can I Establish a Monthly Goal-Setting Process for my Sales Team?
Matthew Holowinski — president, Greenberg Rent A Camper, Clermont, Fla.
A: Establishing a monthly goal-setting process is an important part of a healthy service-based sales culture. The most effective operators use consistent goal settings as a creative way to coach and engage their sales and service staff.
Goal setting is most effective if it takes place among the office’s sales manager and sales representatives. Setting goals for each sales representative will take about 15 to 20 minutes. It is important to have a copy of the company’s incentive plan, the previous year’s sales performance and a report with the sales rep’s last three months of performance.
Next establish a set week in the month for the goal-setting meeting to take place. If the goal setting is completed between the 25th and 30th of each month, it will allow your team members to mentally reset their focus for the next month and bring closure to the month that is wrapping up.
When goal setting is done slightly before the month end, it will accommodate the rentals that are checking in for the new month.
Additionally, consider setting up brief one-on-one follow-up sessions with each team member around the 15th of each month. This can help your sales team stay focused and provide some time to discuss mid-month trends.
During the meeting, review incremental sales yield, individual product conversion, total transactions and walk-ups — most sales representatives have access to these stats and understand how their actions play into their performance. Throughout the review of each performance area, discuss how the sales rep is currently presenting the message versus how he or she should present the message.
Using the performance metric of conversion allows the sales manager to encourage his or her team to obtain additional sales outside their comfort zone — by simply coaching the team to achieve a few more sales out of 100. For example, asking sales reps to increase from a 20% conversion to 25% conversion may seem daunting at first, but it is asking them to sell just five more rentals out of 100.
In a given month with an estimated 400 rentals, it means that they would need an additional 20 new sales per month, or roughly one additional sale per day.
To keep your team focused on the balance between sales and service, balance your team’s sales stats with customer experience goals and their corresponding measurement.
We often speak of three common motivational drivers: money, accountability and ego/recognition — as well as how that person plays a significant role in helping your team set or plan its respective goals. Yet one of the biggest keys is self-efficacy, or the individual’s belief in his or her ability to attain set goals.
When team members have confidence in their abilities, and they are strengthened by your guidance and support, their goals not only become realistic but are often surpassed.
Remember that knowing your audience is the fastest way to knowing your goals. In a sales environment, the most effective sales managers know the members of their team.
By maintaining a consistent line of communication, sales managers can build relationships and identify the strengths and growth opportunities of their sales staff. They teach rather than tell. This way, sales managers are able to exhibit the desired skills and use positive reinforcement to encourage all team members to achieve their goals.
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Ken Stellon is a managing partner with the Frontline Performance Group. He can be reached at KStellon@frontlinepg.com.
Email your car rental operation-related questions to Auto Rental News care of Chris Brown at email@example.com.