How to Use Sales Targeting (With Definition and Tips)

By Indeed Editorial Team

Published May 22, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Sales targeting is an essential aspect of marketing and sales activities for businesses. This strategy may help you get information about the goods and services into the circles and inboxes of customers with the greatest potential to raise your quota and income. Learning more about sales targeting can help you increase sales. In this article, we define what sales targeting is, discuss what the Pareto principle is, list steps on how to implement it, and explore tips for creating a successful strategy at a company.

What is sales targeting?

Sales targeting, which some people refer to as account targeting sales strategy, is a process that entails determining who your prospective customers are, how to contact them, and how to increase awareness of your goods or services. This technique may assist salespeople in meeting their sales goals and adhering to the Pareto Principle. Account targeting sales strategy may take several forms, so examine the ones that are most appropriate for the company's strategy. Some of its benefits include:

  • Better customer experiences

  • Higher closing sales rates

  • Higher customer retention rates

  • More opportunities for up-selling and cross-selling

Related: Relationship and Effect of Customer Service in Sales

What is the Pareto principle?

The Pareto principle argues that 20% of your consumers account for 80% of your sales. This indicates that you're seeking for the top 20% of prospective consumers to concentrate your efforts on and earn the most money in the quickest way possible. Some people also refer to this principle as the 80/20 rule, the law of the vital few, or the factor sparsity principle.

What is a sales target?

A sales target is a set of objectives that an individual salesperson strives to achieve. The target may contain metrics, such as the amount of prospective income or the number of product units that you may sell within a certain timeframe. Account targeting sales strategy enables salespeople to create more effective and realistic objectives by predicting the quantity and type of achievable goals.

How to implement account targeting sales strategy

Use these steps to learn how to implement account targeting sales strategy in a business:

1. Choose your demographic

Determine who your most likely consumers are to profit from the product or service you're offering. Analyze your product from the customer's perspective and determine what features, functionality, or other conveniences add value to it. Consider if your product fits into a niche market and why a buyer may need it. This enables you to devote more time and energy to individual prospects. Additionally, it may enable you to connect your branding and message with the demands of a customer.

2. Choose your territory

After establishing who your clients are, you may determine how to locate them. This may also be a critical phase in developing a marketing plan. Consider where your customers spend the majority of their time, both online and offline. Consider the sources, the timing, and how they get their news. You may observe their social media habits and preferred platforms, and also their preference for print media such as magazines and newspapers, and also their attendance at trade exhibitions and festivals.

Knowing which venues your customers visit may help you choose the ideal target approach, campaigns, and locations to spend money to maximize the visibility of your product or service.

Related: How to Get Into Sales in 5 Steps (With Tips and FAQs)

3. Set your targets

Select your sales targets to help determine the objectives of your strategic initiatives. Consider the profit you can earn from product sales, the number of individuals you can contact before setting up a meeting, the number of meetings you can attend before completing a sale, or the lifetime value of a client. Consider a system for categorizing existing and prospective clients based on their target. For example, you may include a:

  • Category of clients that provide consistent revenue to the company

  • Category of clients who purchase regularly but may provide more business

  • Category of clients or potential leads that need further investigation

Grouping your clients and prospects may assist you in determining which ones have a beneficial lifetime value, such as those who consistently purchase from you. When examining the customer retention sales target, this may reveal who is already loyal and why. Using that information may assist you in determining which strategies are most effective for acquiring new long-term customers. Additional sales objectives may include daily, weekly, or monthly sales units, and also yearly or quarterly sales.

4. Develop your target strategy

Prioritize your aims and clients to identify your top 20% of consumers. Ranking them according to facts and statistics may assist you in making the best educated strategic selections. Consider utilizing a spreadsheet to track and quantify variables such as income creation, potential, and other influences on their purchasing decisions. For instance, you might take a random sample of customers and:

  • Create a spreadsheet tab called Revenue generation and list current, former and potential clients in order from least to greatest.

  • Create a second tab called Revenue potential and list projected revenue for a specific time for each of the same individuals or groups.

  • Create a third tab and list any variables you think may increase or decrease a customer's ability to make a purchase. Rank the variables from one to 10 for each customer, with one being the least likely to affect their purchase and 10 being the most. Add the rankings from all variables to get a total score for each client.

  • Use a formula such as Revenue(.25) + Potential(.25) + Variable Total(.5) to get a ranking for each customer and put them in order from lowest to highest to find your top 20% of customers. The closer they appear to the top of the list, the higher their lifetime value.

5. Make a plan

Determine the method through which you might apply your approach with real current and prospective customers. Choose from a variety of approaches, including sales calls, in-person meetings, and advertising campaigns. Consider why the business, not simply the product or service, benefits the client, why you're prioritizing them, and why they can select you over their existing supplier while developing your sales presentation.

6. Track the data

After a sale, keep track of all accessible data points for each customer to maintain a record of the transaction's success. This may assist you in planning future account targeting sales strategy techniques and in determining the extent to which you affect each customer. It also quantifies how valuable a client is to the business in terms of order volume, frequency, and income. Having this information for each customer enables you to offer real-world examples of sales presentations to potential clients, demonstrating your accomplishments and advantages with accurate facts.

Tips for using account targeting sales strategy

Use these tips when implementing account targeting sales strategy with the company:

Consider background research

Use the information about your existing clients to find the most effective way to target new ones using an account targeting sales strategy. Consult with your customer service agents and support teams to determine the most common feedback. Additionally, you may choose to speak directly with clients through feedback questionnaires or focus groups.

Narrow your target pool

Rather than advertising to everyone, choose a select group to target with your account targeting sales strategy efforts. This enables you to devote more time to developing methods that focus on the group's specific requirements. If you have numerous target groups, consider developing a different account targeting sales strategy plan for each and applying it sequentially, beginning with the most important.

Related: Outside Sales: Definition, Responsibilities, and Differences

Concentrate on your most valuable customers

Consider devoting more time and effort to addressing the demands of a significant organization or customer if you're attempting to secure business with them. Adjust your calendar or reschedule meetings to suit them. This strategy may work if you use it selectively and just for the most profitable customers, rather than for every sale you chase.

Consider using customer relationship management software

Consider investing in a customer relationship management (CRM) package to help you arrange your sales leads more effectively. CRMs may enable you to make more consistent targeting choices, attach variables or qualities to individual prospects, and monitor the stage where customers are in their sales process. You may use the data from this sort of software to compare it to your client profiles and determine which leads are most likely to succeed long-term.

Keep a list of contacts

Try to maintain a database of all your customers and lead contacts, regardless of the outcome of a transaction. You may discover that you can recover a lost sale at a later period due to changes in the business, the client's business, or the market environment. By storing all contact information in a CRM application or spreadsheet, you may retrieve it and try again later.

Personalize your interactions

Consider customizing your interactions with present and prospective consumers. Conduct background research on their history and use representative names and terminology that appear human. This may help enhance your account targeting sales strategy efforts by adding another valuable component.

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