I hope you are doing well and are safe/healthy.
I have a question for all the sales directors/VP Sales and I hope I have the right channel for this.
I was always curious about how a sales target is calculated, how the increase in the target is set.
Let me explain. Let's say we have 3 scenarios:
Target is to close 1M in 2020
#1 You underachieve for XYZ reason and finish the year at 900k
#2 Bingo, you finish the year at 1M = 100% of your target
#3 Champion, you deliver 1.5M = 150% of your target.
The company you work for has a 20% growth in 2021.
My question to you Executives Sales 🙂
Are you going to apply the 20% :
Scenario #1 - on my 900k since I underperformed, which will give me a 2021 target 1,080,000?
Scenario #2 - on my 1M (which was my 2020 target), so my 2021 target would be 1.2M?
Scenario #3 - On my super achievement 1.5M, so my next target would be 1.8M?
Do you also calculate target based on region/countries?
If the company has a 20% growth target in 2021, do you simply apply the 20% growth to your region/salespeople or EMEA could get a 30% increase because xy reason and APAC could get a 10% only?
Thank you for your help and for making sure I understand how that works 🙂
enjoy your day