When you want to focus your sales efforts and motivate your salespeople, Sales OKRs are a great way to do this. With the right OKRs, you can encourage your salespeople to develop relationships with your customers and make sure they convert into long-term clients for your business.
How to write good Sales OKRs?
What are examples of good Sales OKRs?
What should I put in my Sales OKRs?
Should I define the bonus based on the Sales OKRs?
In the article, we will answer these questions and give you the relevant Sales OKR examples.
Sales OKR examples
Objective 1: Hit quarterly revenue of $3,000,000
Start sales in the new market and achieve the first-month income of $500,000
Upsell product to 30% of existing customers
Increase the lead conversion rate from 12% to 20%
Decrease the sales cycle for the basic package from 32 to 15 days
Objective 2: Create and implement the new CRM product tour
Interview 15 recently churned customers to understand churn reasons
Create a new presentation and test it with 5 new customers
Achieve the satisfaction rate of the new product tour of 9.0
Objective 3: Develop a partnership network to increase referral sales
Create a partnership contract and proposal
Shortlist and interview 10 partners
Close 5 deals from partners
Objective 4: Achieve record revenue and profitability
Increase the quarterly profit from $600k to $800k
Increase the quarterly revenue from $3.15M to $4.0M
Increase pre-orders for the next quarter from $1.05M to $1.5M
Objective 5: Achieve a Monthly Recurring Revenue (MRR) of $300k
Increase the MRR from $220k to $300k
Increase average monthly subscription size from $50 to $100
Increase the percentage of annual subscription renewals from 60% to 80%
Reduce monthly churn rate from 2.5% to 1%
Objective 6: Decrease sales lifecycle for the Starter package
Decrease sales lifecycle for SMB edition from 46 to 30 days
Decrease sales lifecycle for enterprise edition from 155 to 90 days
Conduct 50 sales calls with customers with revenue potential $3,000+
Objective 7: Increase the upsell deals
Add $100,000 in upsell revenue
Identify 200 upsell opportunities
Close 40 upsell deals
Set up automatic notifications for all clients 10 days before they the limit to start the upsell process early
Objective 8: Skyrocket the recurring revenue
Increase the quarterly revenue from $700k to $900k
Increase the share of monthly subscriptions versus one-time contracts sold from 60% to 85%
Increase the trial-to-paid plan Conversion Rate from 15% to 25%
Reduce the monthly churn rate from 3.7% to 1%
Objective 9: Increase the quality of the sales approach
Increase the Demo-call-to-purchase conversion rate from 65% to 90%
Collect 20 responses from lost deals and analyze the results
Automate the data transfer between the CRM, Customer.io and the product database
Create the sales best practices and FAQ for the sales teams
Objective 10: Hit company bookings target for Q3
Secure $1M in bookings by the end of Q3
Each sales manager contributes at least $200k in bookings
Increase the % of upsells in bookings from 30% to 45%
Objective 11: Create an effective sales department
Hire and onboard 3 new sales managers
100% of sales managers pass the Sales Certification test
Start the automotive vertical sales in Europe and bring 3+ sales qualified leads
Objective 12: Drive the US sales growth
Attend 3 industry events in the US
Meet with 45 new prospects in the US
Create with Marketing Department the strategic targeting program in the US
Should sales bonuses be calculated based on the OKR completion?
The short answer is NO.
If you define the compensation based on the OKR, you'll end up with understated targets, overstated accomplishments, and low collaboration. OKRs usually define the small area of focus for the sales team, not all the activities they perform.
What you should do, instead, is:
Separate the OKR and performance/compensation reviews.
Use OKRs as one of the inputs for performance/compensation reviews. Make OKRs only one of the sources to define the compensation, but not the main one. Take into account other factors when evaluating the OKR completion score (how difficult the goals were, were else that team member contributed, etc.).
Avoid formulas. Creating the formula doesn't make it less subjective of a fair process. No formulas can take into account all the factors that determine the contribution of an individual team member.
To define the bonus/compensation, better track separate KPIs. Otherwise, you risk deteriorating the whole OKR process.
If one team member can own all the metrics in the OKRs, you can also use individual OKRs (but it is generally not recommended).