Sales Target Allocation

Sales targets of each retail point is formed by allocating financially-determined higher level targets hierarchically to each sales channel and then to individual points of sales. Since most of the retail points and salespeople are compensated by how well they perform relative to the sales targets; carelessly set targets will be perceived unfair and degrade performance.

Most target setting systems are based solely on historical performance of each retail point, which leads to a cycle of increasing targets for high-performance sales points (demanding more and more in each period), thus results in burnouts. In parallel, the targets for low-performance sales points will keep decreasing at each period, creating an undesired system which penalizes the best and rewards the worst in the long run.

Our Solution

  • Statistical models which not only depend on historical performance  but also aim to capture the real sales potential of each sales point using comparative analysis
  • To determine the actual sales potential we make use of:
    • Macroeconomic data around trade area and city
    • Demographic data
    • Competitive presence and market share data
    • Features of the retail store
    • Customer traffic data
    • Tenure of the store and experience of the people
    • Seasonality at granular levels to identify micro effects on customer traffic
  • Many other sector-specific data can easily be integrated to our models. Since most of the factors impacting the sales are under control, the points of sale will receive targets which can measure their contribution in a fair way
  • This approach not only provides sales targets as hard numbers but also provides statistical analysis on what factors are driving the sales for your products in each region.
  • You will be able to clearly identify points of sale with low performance and receive feedback on how to restructure your sales channels

Please contact us for a tailored solution for your business