Sales planning is the foundation of any successful sales strategy. It acts like a roadmap, guiding your sales team towards achieving specific goals and maximizing their performance. It is the process of setting goals, strategies, and actions for your sales team to achieve optimal results. It is a crucial activity for sales success, as it helps you align your sales efforts with your business objectives, identify and address potential challenges, and optimize your sales performance. Without a well-defined plan, your sales efforts may lack direction, leading to missed opportunities and inconsistent results.

In this article, we will guide you through the main steps involved in sales planning, and provide you with tips and tools to make it easier and more effective. By following this sales planning checklist, you will be able to:

1. Gather and analyze relevant sales data and search for trends
2. Define your sales objectives and align them with your company’s vision, mission, and strategy
3. Determine the metrics for success and track your progress toward your goals
4. Assess the current situation of your sales team and your market using a SWOT analysis
5. Start sales forecasting and estimate your future sales results
6. Identify the gaps between your current and desired sales performance and prioritize them
7. Ideate new sales initiatives that can help close the gaps and achieve the goals
8. Involve your sales team and other stakeholders in the sales planning process and get their feedback, buy-in, and support

By the end of this article, you will have a clear and comprehensive sales plan that will help you boost your sales results and grow your business. Let’s get started!

The Steps in Sales Planning

Step 1: Gather sales data and search for trends

The first step in sales planning is to collect and analyze relevant sales data, such as past performance, customer feedback, market research, etc. This will help you understand your current situation, identify your strengths and weaknesses, and discover opportunities and threats in your market.

To gather and analyze sales data, you can use various tools or methods, such as:

• Dashboards: A dashboard is a visual display of key sales metrics and indicators that allow you to monitor and measure your sales performance at a glance. You can use a dashboard to track your sales revenue, sales volume, conversion rate, average deal size, sales cycle length, customer satisfaction, etc. You can also use a dashboard to compare your actual results with your targets and identify any deviations or anomalies.
• Reports: A report is a detailed document that summarizes and presents your sales data in an organized and structured way. You can use a report to provide more in-depth information and analysis of your sales performance, such as the reasons behind your success or failure, the trends and patterns in your data, the best and worst practices, the lessons learned, etc. You can also use a report to communicate your sales results and insights to your stakeholders, such as your managers, team members, customers, partners, etc.
• Charts: A chart is a graphical representation of your sales data that helps you visualize and interpret your data more easily. You can use a chart to show the relationship between different variables, such as the correlation between your sales revenue and your sales activities, the distribution of your sales across different segments, the changes in your sales over time, etc. You can also use a chart to highlight the most important or interesting aspects of your data, such as the outliers, the peaks and valleys, the growth and decline, etc.

Step 2: Define your objectives

The second step in sales planning is to set SMART (specific, measurable, achievable, relevant, and time-bound) goals for your sales team. These goals should reflect what you want to achieve with your sales efforts, and how you will measure your success.

To set SMART goals, you should:

• Be specific: Your goals should be clear and concise, and state exactly what you want to accomplish. For example, instead of saying “I want to increase sales”, you should say “I want to increase sales revenue by 10% in the next quarter”.
• Be measurable: Your goals should be quantifiable and verifiable, and have a clear criterion for success. For example, instead of saying “I want to improve customer satisfaction”, you should say “I want to improve customer satisfaction score by 5 points in the next month”.
• Be achievable: Your goals should be realistic and attainable, and match your capabilities and resources. For example, instead of saying “I want to sell to every customer in the world”, you should say “I want to sell to 100 new customers in the next year”.
• Be relevant: Your goals should be aligned with your company’s vision, mission, and strategy, and support your overall business objectives. For example, instead of saying “I want to sell more products”, you should say “I want to sell more products that fit our target market and value proposition”.
• Be time-bound: Your goals should have a specific deadline or timeframe, and create a sense of urgency and motivation. For example, instead of saying “I want to grow my market share”, you should say “I want to grow my market share by 5% by the end of this year”.

Some examples of common sales objectives are:

• Increase sales revenue by 10% in the next quarter
• Increase market share by 5% by the end of this year
• Increase customer satisfaction score by 5 points in the next month
• Increase conversion rate by 15% in the next six months
• Decrease sales cycle length by 20% in the next three months

Step 3: Determine metrics for success

The third step in sales planning is to choose and track key performance indicators (KPIs) that measure your progress towards your goals. These metrics should reflect the most important aspects of your sales performance, and help you evaluate your effectiveness and efficiency.

To choose and track KPIs, you should:

• Select relevant metrics: Your metrics should be directly related to your goals, and capture the essence of what you want to achieve. For example, if your goal is to increase sales revenue, your metric should be sales revenue, not sales volume or sales activities.
• Select meaningful metrics: Your metrics should be significant and valuable, and reflect the impact and outcome of your sales efforts. For example, if your goal is to improve customer satisfaction, your metric should be customer satisfaction score, not customer feedback or customer retention.
• Select actionable metrics: Your metrics should be controllable and manageable, and help you identify and address the root causes of your sales performance. For example, if your goal is to decrease sales cycle length, your metric should be sales cycle length, not sales pipeline or sales stages.

Some examples of common sales KPIs are:

• Sales revenue: The amount of money generated by your sales activities
• Market share: The percentage of the total market that your sales represent
• Customer satisfaction score: The average rating of your customer’s satisfaction with your products or services
• Conversion rate: The percentage of your prospects that become customers
• Average deal size: The average value of your sales deals
• Sales cycle length: The average time it takes to close a sale

Step 4: Assess the current situation

The fourth step in sales planning is to conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis of your sales team and your market. This will help you evaluate your internal and external factors that affect your sales performance, and identify your areas of improvement and potential growth.

To conduct a SWOT analysis, you should:

• Identify your strengths: Your strengths are the positive and favorable aspects of your sales team and your market that give you a competitive advantage or a unique value proposition. For example, your strengths could be your skilled and motivated sales team, your loyal and satisfied customers, your innovative and high-quality products or services, etc.
• Identify your weaknesses: Your weaknesses are the negative and unfavorable aspects of your sales team and your market that limit your capabilities or reduce your value proposition. For example, your weaknesses could be your lack of resources or training, your high turnover or attrition, your outdated or low-quality products or services, etc.
• Identify your opportunities: Your opportunities are the external and positive factors in your market that create new or better possibilities for your sales growth or improvement. For example, your opportunities could be a growing or untapped market, a changing customer behavior or preference, a new technology or trend, etc.
• Identify your threats: Your threats are the external and negative factors in your market that pose challenges or risks for your sales performance or survival. For example, your threats could be a shrinking or saturated market, a rising customer expectation or demand, a new competitor or regulation, etc.

Some examples of common sales strengths, weaknesses, opportunities, and threats are:

• Strengths: Skilled and motivated sales team, loyal and satisfied customers, innovative and high-quality products or services, etc.
• Weaknesses: Lack of resources or training, high turnover or attrition, outdated or low-quality products or services, etc.
• Opportunities: Growing or untapped market, changing customer behavior or preference, new technology or trend, etc.
• Threats: Shrinking or saturated market, rising customer expectation or demand, new competitor or regulation, etc.

Step 5: Start sales forecasting

The fifth step in sales planning is to estimate your future sales results based on your data, goals, and metrics. This will help you project your sales performance, and plan your sales activities and resources accordingly.

To start sales forecasting, you can use different methods and techniques, such as:

• Historical analysis: This method uses your past sales data and trends to predict your future sales results. For example, you can use your historical sales revenue and growth rate to forecast your sales revenue for the next quarter or year. This method is simple and easy to use, but it assumes that your sales performance will follow the same pattern as before, and it does not account for any changes or uncertainties in your market or environment.
• Pipeline analysis: This method uses your current sales pipeline and conversion rate to predict your future sales results. For example, you can multiply the number and value of your sales opportunities by your conversion rate to forecast your sales revenue for the next quarter or year. This method is more accurate and realistic than historical analysis, but it depends on the quality and reliability of your sales pipeline and conversion rate data, and it does not account for any external factors or uncertainties that may affect your sales performance.
• Scenario analysis: This method uses different assumptions and scenarios to predict your future sales results. For example, you can create a best-case, a worst-case, and a most likely scenario based on your sales data, goals, metrics, and market conditions, and forecast your sales revenue for each scenario. This method is more flexible and comprehensive than historical or pipeline analysis, but it requires more time and effort to create and analyze different scenarios, and it may still not cover all the possible outcomes or uncertainties.

To help you with sales forecasting, you can use various tools or software, such as:

• Spreadsheets: A spreadsheet is a simple and common tool that allows you to organize, calculate, and visualize your sales data and forecasts. You can use a spreadsheet to create formulas, functions, tables, charts, and graphs to perform different sales forecasting methods and techniques. You can also use a spreadsheet to share and collaborate with your sales team and stakeholders on your sales forecasts.
• CRM: A CRM (customer relationship management) system is a software that helps you manage and optimize your customer interactions and relationships. You can use a CRM system to store and track your sales pipeline and conversion rate data and generate sales forecasts based on your current sales opportunities and activities. You can also use a CRM system to monitor and measure your sales performance and progress toward your goals and KPIs.
• AI: AI (artificial intelligence) is a technology that uses machine learning and data analysis to perform complex and intelligent tasks. You can use AI to enhance your sales forecasting by using advanced algorithms and models to analyze your sales data and market conditions and generate more accurate and reliable sales forecasts. You can also use AI to automate and streamline your sales forecasting process and provide you with insights and recommendations to improve your sales performance.

Step 6: Identify gaps

The sixth step in sales planning is to compare your current and desired sales performance and identify the gaps or areas for improvement. These gaps are the differences between your actual and expected sales results, and they indicate the areas where you need to take action to close them and achieve your goals.

To identify gaps, you should:

• Compare your actual and expected sales results: You should use your sales data, goals, and metrics to measure and evaluate your sales performance and compare your actual results with your expected results. For example, you can compare your actual sales revenue with your sales revenue target, and calculate the variance or percentage difference between them.
• Identify the causes and effects of the gaps: You should use your sales data, analysis, and insights to determine the root causes and effects of the gaps and understand why and how they occurred. For example, you can use your sales data and SWOT analysis to identify the internal and external factors that contributed to the gaps and the impact and consequences they had on your sales performance.
• Prioritize and categorize the gaps: You should use your sales data, goals, and metrics to prioritize and categorize the gaps based on their impact and urgency and decide which ones are more important or critical to address. For example, you can use a matrix or a chart to rank and classify the gaps according to their size and frequency, and their alignment and relevance to your goals and KPIs.

Some examples of common sales gaps are:

• Skills gap: The difference between the skills required and the skills possessed by your sales team
• Process gap: The difference between the processes expected and the processes followed by your sales team
• Resource gap: The difference between the resources needed and the resources available for your sales team
• Performance gap: The difference between the performance expected and the performance delivered by your sales team

Step 7: Ideate new initiatives

The seventh step in sales planning is to brainstorm and generate ideas for new sales initiatives that can help close the gaps and achieve the goals. These initiatives are the actions or projects that you plan to implement or execute to improve your sales performance and results.

To ideate new initiatives, you can use different methods and tools, such as:

• Brainstorming: Brainstorming is a technique that involves generating as many ideas as possible in a short time, without judging or filtering them. You can use brainstorming to come up with creative and innovative solutions for your sales challenges and opportunities and explore different possibilities and alternatives. You can also use brainstorming to involve your sales team and stakeholders in the ideation process and encourage their participation and contribution.
• Mind mapping: Mind mapping is a tool that involves creating a visual diagram that represents your ideas and their connections. You can use mind mapping to organize and structure your ideas and show how they relate to your goals, metrics, gaps, and initiatives. You can also use mind mapping to clarify and communicate your ideas, and make them more memorable and understandable.
• Online platforms: Online platforms are websites or applications that offer various features and functions to help you with ideation. You can use online platforms to access and use different ideation methods and tools, such as brainstorming, mind mapping, voting, ranking, etc. You can also use online platforms to collaborate and share your ideas with your sales team and stakeholders and get their feedback and input.

Some examples of common sales initiatives are:

• Training: Training is an initiative that involves providing your sales team with the knowledge, skills, and competencies they need to perform their sales tasks and activities effectively and efficiently. You can use training to close the skills gap and improve the quality and productivity of your sales team. You can also use training to motivate and engage your sales team and increase their confidence and satisfaction.
• Incentives: Incentives are an initiative that involves rewarding your sales team for their sales performance and results. You can use incentives to close the performance gap and increase the quantity and profitability of your sales team. You can also use incentives to inspire and challenge your sales team and enhance their loyalty and retention.
• Campaigns: Campaigns are an initiative that involves creating and executing a plan to promote and sell your products or services to your target market. You can use campaigns to close the resource gap and increase the awareness and demand for your products or services. You can also use campaigns to attract and retain your customers and improve their satisfaction and loyalty.

Step 8: Involve stakeholders

The eighth and final step in sales planning is to communicate and collaborate with your sales team and other stakeholders, such as managers, customers, partners, etc. These stakeholders are the people who are involved in or affected by your sales plan, and they have a stake or interest in your sales performance and results.

To involve stakeholders, you should:

• Communicate your sales plan: You should share and present your sales plan to your stakeholders, and explain the rationale and benefits of your sales plan. You should use clear and concise language, and use different formats and channels, such as documents, emails, meetings, presentations, etc. You should also use visual aids, such as charts, graphs, images, etc., to illustrate and highlight your sales plan.
• Get feedback: You should solicit and collect feedback from your stakeholders, and listen to their opinions and suggestions. You should use different methods and tools, such as surveys, interviews, focus groups, etc., to gather and analyze feedback. You should also acknowledge and appreciate feedback, and use it to improve and refine your sales plan.
• Get buy-in: You should persuade and convince your stakeholders to support and approve your sales plan and overcome any objections or resistance. You should use different techniques and strategies, such as storytelling, testimonials, demonstrations, etc., to influence and inspire your stakeholders. You should also address and resolve any issues or concerns, and provide reassurance and guarantees.
• Get support: You should request and obtain support from your stakeholders, and leverage their resources and capabilities. You should use different forms and types of support, such as financial, technical, operational, etc., to facilitate and enhance your sales plan. You should also acknowledge and appreciate support, and use it to achieve and exceed your sales plan.

Some examples of best practices for stakeholder involvement are:

• Involve stakeholders early and often: You should involve your stakeholders from the beginning and throughout the sales planning process, and keep them informed and updated on your sales plan. This will help you build trust and rapport with your stakeholders, and ensure their alignment and commitment to your sales plan.
• Involve stakeholders appropriately and proportionately: You should involve your stakeholders according to their role and responsibility, and their level and degree of involvement. This will help you avoid overloading or underutilizing your stakeholders, and ensure their satisfaction and contribution to your sales plan.
• Involve stakeholders respectfully and collaboratively: You should involve your stakeholders with respect and courtesy, and treat them as partners and allies. This will help you create a positive and productive relationship with your stakeholders, and ensure their cooperation and collaboration to your sales plan.

Conclusion

By following this comprehensive sales planning checklist, you can create a roadmap for success that guides your sales team toward achieving their full potential. Remember, a well-defined plan is just the beginning. The key lies in continuous monitoring, analyzing, and adapting your strategies throughout the sales cycle for optimal results.

Ready to unlock the power of sales planning? Download our sales planning template and other useful resources for your business here, and start charting your course to sales success today!