The term target agreement refers to a management technique in which a manager and his staff agree to the realization of the organization’s goals.
In order to act precisely and to plan in sales activities, target agreements are defined for individual employees or teams. These can include turnover, number of visits, or initial contacts and are mostly based on the company’s global targets. As a rule, a distinction is made between short, medium and long-term goals as well as between operational and strategic goals.
If the CRM system offers such a possibility, then the defined targets can be stored there and the current intermediate status of the target agreements checked. In case the sales targets are not developing as expected, the employee concerned is timely warned and has the opportunity to counteract, for instance by calling customers, visiting them or launching marketing actions.
The plus and minus lists are another possible function that shows the employees which customers ‘turnovers lie below or above the expectations. Thus, the sales employees recognize at an early stage trend change to which the purchasing behavior of the customer adapts.
