As we move into 2025 sales planning cycle it is important to understand Sales planning is more than setting revenue targets. In fact, it can be the most powerful tool you have in supporting your profitability goals while keeping your sales team motivated. The key is the right sales plan. When your sales teams believe in the plan and are thinking the same way as the leaders of the business, they’ll deliver the results. Make sure your plans reflect these best practices to get both: Profitability and sales team engagement.
Quota Setting Based on Data, Not Guesswork
One of the most powerful incentives for sales teams is a clear, achievable goal. A company should leverage historical performance, market trends, and competitive analysis to build realistic quotas. For example, a SaaS company could leverage CRM to gather seasonal buying trends and customer behaviour, and then create realistic, but stretchy, quotas that generate a feeling of motivation and profit.
Balanced Incentive Structures
Incentive plans should be structured such that all levels of performance are rewarded, not just the top 10 per cent. Tiered incentives offer base-level rewards and then offer additional incentives for achieving or exceeding target. One manufacturing company will reward sales reps who hit 90 per cent of their targets, but then offers even more incentives if they bring in business in excess of 110 per cent. This incentivises all reps, but wouldn’t encourage unreasonable aspirations.
Regular Sales Performance Reviews and Adjustments
The sales plan also demands vigilance and constant adjustment. As a telecommunications company, let’s say you monitor your sales progress every quarter and readjust the plan accordingly. From time to time, the sales team will appreciate the leadership team being responsive to changing market realities.
Collaboration Across Departments
For instance, sales planning should be done in collaboration with marketing, finance, and operations – in one healthcare company, we worked to coordinate sales campaigns with the marketing department on the launch of a new product, since the sales team would have a greater chance of success if the launch date was synchronised. It’s a matter of matching up the company’s various pieces, of harnessing synergy, to ensure greater profitability and motivation for everyone.
A sales planning process rooted in these best practices can help organisations manage the volatility that often accompanies forecasting while maintaining a culture that fosters sustainable profitability and keeps sales teams focused on realising their collective potential.
