Introduction

No matter what type of business you are running, the destination is clear: increased sales conversion. To achieve that goal, sales planning is important, and you need to get it right from the beginning. Otherwise, the entire business will shake to its core!

Keep scrolling through our guide to unlock all the secrets behind an effective sales plan.

A Quick Overview of Sales Planning

It is a roadmap for your sales team to achieve their goals (Source). 

Definition

In simple terms, sales planning means creating a roadmap for your sales team to achieve their goals. This strategic process usually involves three key stages (which we will return to later): 

• Setting clear sales objectives
• Determining the best approach to reach those objectives
• Allocating resources effectively

What A Sales Plan Should Look Like

Remember that this sales plan serves as the detailed blueprint outlining how your sales team will achieve its goals. Though specific key elements can vary based on the nature of the business, its general structure is usually as follows:

• Executive summary: A concise overview of the entire plan, including key goals, strategies, and expected outcomes.
• Company overview: Briefly describe your business, mission, and target market.
• Market analysis: Discuss the industry, potential customers, competitors, market trends, etc.
• Sales goals or objectives: Clearly defined, measurable, and achievable sales targets for a specific period (e.g., quarterly, annual)
• Sales strategy: Outlines the overall approach to achieve those sales goals (e.g., target market segmentation, value proposition, unique selling points, etc.)
• Sales tactics: Detailed actions and methods to execute the sales strategy, with identifiable metrics to measure sales performance.

If possible or applicable, the plan might include sales revenue prediction based on market trends and historical data. You may also mention plans for ongoing sales team training/development or brief 2 to 3 alternative strategies for potential challenges. 

When to Plan

An annual sales plan (which establishes a comprehensive roadmap for the entire year) is usually recommended. Suppose you're planning for 2024; in that case, your marketing plan should be finalised by December 2023.

Nevertheless, some circumstances might call for more frequent planning adjustments. 

For example, mid-year sales plan reviews play a huge role in evaluating progress against annual goals. Similarly, quarterly sales plan updates offer a more granular, short-term focus to execute rapid responses to changing market dynamics. 

Companies also need a sales plan for unexpected issues or challenges (e.g., economic downturns or market disruptions) to adjust sales strategies and identify new opportunities, if any.

Importance Of Sales Planning: 5 Reasons You Need It

Strong Business Foundation

A well-defined sales plan is tightly linked to the company's overarching goals, ensuring that all sales efforts align closely with the organisation's vision and values. 

Furthermore, when sales professionals clearly communicate how sales contribute to the company's bottom line, the sales plan will serve as a powerful motivation tool to direct the sales team. The end result is a cohesive business culture where all departments work effectively towards the shared destination.

A Clearer Goal

SMART goals leave little room for misunderstanding (Source).

Clear SMART goals (specific, measurable, achievable, relevant, and time-bound) leave zero room for ambiguity. As a result, the sales team can prioritise their efforts more effectively while making good strategic decisions about which opportunities to pursue and which to decline. No more wasted time and certainly no more redundant effort on non-essential sales activities. 

Also, given the quantifiable revenue goals, performance can now be measured more accurately against specific benchmarks. That means it's easier to hold individuals and teams accountable for their jobs or find out what went wrong when the results fall short.

Resource Management

A comprehensive sales plan results from thorough analyses of sales territories, meaning sales managers can accurately determine the optimal number of sales reps required to achieve revenue targets. Hence, it helps prevent overstaffing or understaffing, both of which lead to missed sales opportunities. 

Moreover, sales plans facilitate effective matches between sales talent and specific roles or responsibilities. After identifying the unique skills and experience required for different sales positions, you can assign personnel to tasks that align with their strengths in order to maximise individual performance and, in turn, overall team productivity.

Improved Collaboration

Since sales plans already outline clear objectives and strategies (as discussed above), they pave the way for a shared vision for the entire organisation and align everyone's efforts better to support such objectives.

It would be even better if the sales planning process encouraged collaboration between different departments (e.g., marketing teams and sales departments work together to adjust new offerings to customer needs). That way, everyone can identify potential challenges and develop integrated marketing strategies accordingly, which helps improve the overall quality of decisions at the end of the day.

Better Product Quality

Though the relationship between product quality and sales plans might not be immediately apparent at first, it has been the case for many successful enterprises! 

The reason is simple: sales data collected through the sales process can provide valuable information about product performance (e.g., conversation rates, sales figures, customer feedback, etc.). Your businesses can identify products that resonate with potential buyers and those requiring improvement.

From there, the next step is to allocate resources to products with the highest potential return on investment (refer to the Resource Allocation/Management section above). As a result, the products will be developed properly to meet customer needs and drive sales.

Note: Virtual centres like StringeeX are excellent solutions for monitoring customer feedback on products and services. They consolidate data from all communication channels into one place, which translates to a comprehensive view of customer behaviour without needing to switch platforms.

Customer feedback aside, StringeeX can track agent performance metrics (such as average handle time, call abandonment rates, and first-call resolution), providing reliable data to help you create a more effective sales approach.

Actionable Steps to Create A Strategic Sales Plan

Step 1. Define Your Business Goals

Start by setting clear, measurable goals that align with your business strategy. Remember to use SMART criteria and key performance indicators (KPIs) to better track progress later.

Step 2. Develop A Value Proposition

Next, create a good value proposition that clearly communicates the unique benefits of your product or service and sets it apart from other competitors in the market.

Step 3. Outline Your Sales Process

Define each stage of the sales funnel (from initial contact to deal closure), clearly outlining activities and responsibilities at each stage to help streamline marketing efforts and improve conversion rates.

Another part of the sales process is talent development, so remember to evaluate your current team and identify strengths and weaknesses. If necessary, consider hiring new members for the project.

Step 4. Predict Sales and Determine Your Budget

The next step is sales forecasting (Source). 

Effective inventory management is impossible without extensive research. Hence, we suggest analysing all available historical data and market trends to develop the most accurate sales forecast. Based on this research, you can then proceed to allocate financial resources effectively while avoiding unnecessary expenses.

Step 5. Monitor and Adjust

Last but certainly not least, regularly review sales performance against goals and pinpoint areas for improvement (if any). Make necessary adjustments to stay aligned with changing market conditions.

Conclusion

The sales planning process can vary depending on the type of business, but its main stages are generally universal. For data collection, using robust omnichannel tools like StringeeX is a great idea; click here to learn more about its features!