A successful sales planning cycle is one of the most instrumental efforts in driving the overall success of a sales organization. As you start scaling the size of your sales org and going after more aggressive targets, you will need someone to help you with your fiscal year planning efforts and overall alignment of your go-to-market sales strategy.
A well run planning cycle involves the following:
Target Addressable Market (TAM): Establishing and populating TAM accounts into your CRM in a manner that allows for proper territory management and account allocation. This is a critical exercise that flows down and impacts all other facets of FY planning.
Sales Target: Defining the annual sales target and associated hiring requirements for the upcoming FY based on a top-down capacity/productivity model and then counterbalancing it against a bottoms-up review of 'account potential’ to ensure you have an achievable goal for the upcoming year and have the necessary resources to attain this goal.
Sales Model and Coverage Model: Balancing both models so you have an optimized cost stack. In other words, defining the type of field sales model you should have in play (Hunter/Farmer, Hybrid, Inside/Outside etc) and then ensuring that you have the right ratios of infrastructure heads (SEs, CSMs, SMEs, PSMs etc). Getting this part of the equation wrong can be extremely costly to any growing company.
Allocate Territories and Quotas: Once you have the first three bullet points locked down, the final step of the FY Planning process is distributing territories and quotas to to the street level in a fair and equitable manner. This involves defining systems, rules of engagement and overall account structure to do so effectively.
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