Learn how to analyze, set goals, define actions, communicate, and monitor your action plan to address a negative sales variance and improve your sales performance.

Based on my experience, I've come to understand that in the absence of SMART goals, sales teams are prone to losing their sense of direction. During performance evaluations, discontent often surfaces because of the lack of specific and measurable targets. The impact of SMART goals is closely tied to the company's customer-centric approach and its readiness for growth. This critical aspect significantly affects both team motivation and the overall success of the company.

How can you develop an action plan to address a negative sales variance?

A negative sales variance means that your actual sales are lower than your expected or budgeted sales for a given period. This can indicate a problem with your sales strategy, execution, or market conditions. To address a negative sales variance, you need to develop an action plan that identifies the root causes, sets realistic goals, and outlines the steps to improve your sales performance. Here are some tips on how to create an effective action plan for a negative sales variance.

1 Analyze the variance

The first step is to analyze the variance and understand why it occurred. You can use various tools and methods to break down the variance into different components, such as volume, price, mix, and market share. You can also compare the variance across different products, regions, channels, and customer segments. By doing this, you can identify the main drivers of the negative variance and the areas where you need to focus your action plan.

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Sandeep Gothwal

Branding and PR I Media Sales I Corporate Sales Manager I Director I MBA | Marketing and HR
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Identify Root Causes:Analyze the factors contributing to the sales, Look into pricing issues, market changes, or internal issues affecting sales performance. Review Sales Strategies:Evaluate the effectiveness of current sales strategies.Consider adjustments in pricing, promotions, or product positioning based on market trends. Customer Feedback Analysis:Gather and analyze customer feedback to understand their perspective.Identify areas for improvement in customer experience that might impact sales. Sales Team Evaluation:Evaluate the performance of the sales team.Provide additional training or support if needed and consider incentive programs. Data Analytics:Leverage data analytics to identify trends and patterns.

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Alex Baldovin

Lead generation for B2B with cold email | Clay expert.
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Keep listening your customers. Everything is in motion, industries change overnight. The best way to identify variants is to keep your relationship with your clients alive. Just thinking about dealing with their problems for them. That will keep you in business.

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2 Set SMART goals

The next step is to set SMART goals for your action plan. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Your goals should be clear and concrete, aligned with your sales strategy and objectives, realistic and attainable, and have a deadline and metrics to track your progress. For example, a SMART goal could be to increase your sales volume by 10% in the next quarter by launching a new promotion campaign for your best-selling product.

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Yucel Keyik

Country Sales Manager | Commercial Growth & Market Expansion
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Based on my experience, I've come to understand that in the absence of SMART goals, sales teams are prone to losing their sense of direction. During performance evaluations, discontent often surfaces because of the lack of specific and measurable targets. The impact of SMART goals is closely tied to the company's customer-centric approach and its readiness for growth. This critical aspect significantly affects both team motivation and the overall success of the company.

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3 Define the actions

The third step is to define the actions that you need to take to achieve your goals. You should list the tasks, resources, responsibilities, and timelines for each action. You should also prioritize the actions based on their impact, urgency, and feasibility. For example, an action could be to train your sales team on how to pitch the new promotion campaign, assign a budget and a manager for the campaign, and schedule weekly follow-ups to monitor the results.

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4 Communicate the plan

The fourth step is to communicate the plan to your sales team and other stakeholders. You should explain the rationale behind the plan, the expected outcomes, and the roles and expectations of each person involved. You should also solicit feedback and suggestions from your team and address any concerns or questions they may have. By communicating the plan effectively, you can ensure that everyone is on the same page and committed to the plan.

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5 Implement and monitor the plan

The final step is to implement and monitor the plan. You should execute the actions according to the plan and track your progress and performance regularly. You should use the metrics and indicators that you defined in your goals to measure your results and compare them with your expectations. You should also review and adjust the plan as needed based on the feedback and data that you collect. By implementing and monitoring the plan, you can ensure that you are on track to overcome the negative sales variance and improve your sales performance.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you develop an action plan to address a negative sales variance?

1

2

3

4

5

6

1 Analyze the variance

2 Set SMART goals

3 Define the actions

4 Communicate the plan

5 Implement and monitor the plan

6 Here’s what else to consider

Sales Management

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How can you develop an action plan to address a negative sales variance?

1

2

3

4

5

6

1 Analyze the variance

2 Set SMART goals

3 Define the actions

4 Communicate the plan

5 Implement and monitor the plan

6 Here’s what else to consider

Sales Management

Rate this article

Thanks for your feedback

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