Imagine launching a fantastic product, but no one knows about it. That’s the risk you take without a sales plan. A sales plan is your roadmap to success, outlining how you’ll reach your target customers and achieve your sales goals. It acts like a GPS for your sales team, ensuring everyone’s on the same path and driving towards growth.

TL;DR

• A sales plan is a portfolio that outlines your procedures, target market, and strategies.
• Components of a sales plan:
  • Mission statement
  • Executive summary
  • List of business goals and objectives
  • Analysis of past performance
  • Industry and Market Overview
  • Set of approved sales strategies and tactics
  • Plan for tracking metrics
• How To Create A Product Sales Plan:
  • Decide on Your Timeline
  • Outline the Context
  • Company Mission and Values
  • Target Market and Product Positioning
  • Sales Team and Resources
  • Concurrent Activities
  • Business Road Map
  • Determine performance benchmarks
  • Action Plan
  • Budget
• Types of sales plan:
  • Customer Profile 
  • Buyer’s Guide
  • 30-60-90-Day Plan
  • Market Expansion Plan
  • Marketing-alignment Plan
  • New Product/Service Plan 

What Is A Product Sales Plan?

A sales plan is a portfolio that outlines your procedures, target market, goals, and strategies. It helps you direct your sales strategy, and estimate costs and returns.

What To Include In A Sales Plan?

Your sales plan should include the three components listed below:

1. Mission statement

Firstly, share your mission statement in your sales plan. The secret is to state your company’s values clearly and what makes you different from competitors. You can also include a brief company history here to give readers a thorough picture of your beginnings and future goals.

2. Executive summary

Next, draft an executive summary that provides your team and any potential investors with important information regarding sales initiatives and company goals. This fundamental component may include:

• A vision statement: a concise declaration of an organization’s long-term goals.
• Sales goals: specific targets set by a company to achieve within a certain timeframe.
• An abstract on plans to scale: a brief summary outlining a company’s strategy for expanding its operations and increasing its capacity.
• Company history: a detailed account of an organization’s background, including its founding, achievements, and evolution over time.

3. List of business goals and objectives

Include a section outlining your revenue targets and business goals in every sales plan.

Sales goals should be both reasonable and sufficiently challenging to inspire the sales team. You also need to make sure the goals are conveyed to the team in the sales strategy to help them know where to concentrate their efforts.

The following are some examples of sales-related business objectives that your company might wish to think about:

• Revenue amount: Set a specific dollar amount for sales in the coming year.
• Profitability targets: Determine your intended profit margins and set sales goals accordingly.
• Sales forecast projections: Set reasonable sales targets based on industry expectations.

4. Analysis of past performance

Monitor each team member’s growth in the same way, and track overall team performance. Keep written or visual records of:

• Conversion rates: the percentage of potential consumers who perform a desired action compared to the total number of visitors or leads. Conversion Rate= (Number of conversions/ Total Number of Visitors or Leads)×100
• Average hold times: the average duration a customer spends on hold before being connected to a representative.
• Customer satisfaction rates: measures the percentage of customers who are satisfied with a company’s products. This is often assessed through surveys.
• Average talk times: refers to the average duration of conversations between customers and representatives.
• First contact resolution rates: measures the percentage of customer issues resolved on the first contact.
• Dial transfer rates: the percentage of calls that need to be transferred to another representative or department.

That way, you’ll always be aware of how your team is performing and agents can see how they’re doing.

Set up regular meetings with each sales agent to see whether they are on the right track and feeling motivated. Make sure to monitor their short and long-term goals, as well as the milestones that relate to each stage of the sales funnel.

5. Industry and Market Overview

You need to know what your customers desire and what your rivals are selling to develop a successful sales strategy. To give yourself an edge, consider asking yourself these questions:

• Who is my ideal customer and how would they use my tool?
• What problems are potential clients having?
• Does my product have a market demand?
• Does the demand depend on external factors like seasonality or regionality?
• What makes me stand out from the competitors?
• Who are my competitors? In what areas do they perform well and poorly?

Examine Google Data Studio’s analytics to get useful information. Carry out further in-depth research, survey customers, and review sales materials from competitors.

6. Set of approved sales strategies and tactics

A sales plan should also outline the specific steps your team will take to accomplish the goals stated in the document. Here are a few popular tactics you might want to use:

• Conversational selling: It’s a chatty approach to sales, focusing on building rapport and understanding the customer’s needs.
• Social selling: You leverage social media to connect with potential customers and build relationships.
• Cold calling: Reaching out to strangers by phone to introduce your product or service.
• Discount pricing and promotions: Offering temporary price reductions to incentivize purchases.
• Google Ads: Paying to display your business listing on Google search results for relevant keywords.
• Cross-selling: Recommending additional products or services that complement what a customer is already buying.

Your sales action plan should outline the problems that potential customers may have and how to solve them to turn leads into paying clients. It should also outline the several approaches to reaching out to your target audience and promoting a new product.

7. Plan for tracking metrics

Finally, you need to decide which key performance indicators (KPIs) you will use to track the effectiveness of your agents and sales tactics. This data will be important when it comes time to make changes to your entire sales plan.

Here are some great KPIs you should keep tabs on:

➡ Revenue by product

This is the total income generated from each product. You can use sales software or CRM systems to record sales data for each product.

Revenue by Product = ∑(Quantity Sold×Selling Price) for each product.

➡ The average length of the sales cycle

This is the average time it takes for a lead to move from initial contact to closing the sale. 

Average Length of Sales Cycle =∑(End Date−Start Date)​/Number of Closed Deals.

➡ Revenue from new customers

This is the total income generated from new customers within a specific period. You can use CRM systems to distinguish between new and returning customers.

Revenue from New Customers =∑(Sales from New Customers).

➡ Sales funnel conversion rates

Percentage of leads that move from one stage of the sales funnel to the next. To calculate this,

Number of leads advancing to the next stage/ Total number of leads at the current stage.

➡ Revenue from returning customers

This is the total income generated from customers who have made repeated purchases. To calculate this sum the total sales from all returning customers.

➡ Customer acquisition rate

This is the rate at which new customers are acquired over a specific period. Calculate this by,

Number of new customers/Total number of potential customers contacted.

Discuss with your team about how often you plan to review sales data. Do that once you’ve decided which metrics are most important to you.

How To Create A Product Sales Plan?

1. Decide on Your Timeline

Setting goals and detailing techniques will be ineffective if you do not have a deadline to measure your progress.

Determining the timeline of your sales plan should therefore be your top priority. When will you be ready to begin implementing your strategy and when is a suitable period to assess its effectiveness against your SMART goals?

SMART stands for:

S: Specific

M: Measurable

A: Achievable

R: Relevant

T: Time-bound

Remember that you need to give the plan time to have an impact, therefore this timeline should not be overly restrictive. However, you should also ensure that you are flexible enough to change your strategy if it is not yielding the intended outcomes.

2. Outline the Context

Your sales plan’s opening page should outline the context surrounding the plan’s creation.

• How is the organization doing right now? What problems and obstacles do you face? What wins have you had recently?
• Is your cash flow restricted, or does your revenue seem to be increasing? How is the present performance of your sales team?

You can discuss your business plan and roadmap in the document. You can also include an overview of your company’s long-term goals in this section. For example, where do you see the company in five years?

3. Include Company Mission and Values

You must place your mission and values at the heart of your company. They must be a part of every operation, including your sales strategy.

Including a summary of your company’s mission and values in your sales plan can help you stay focused on the company’s goals. It’ll ensure that your approach and tactics will work towards achieving them.

4. Define Your Target Market and Product Positioning

Next, You have to define the market you are working in.

Which industry or market are you aiming for? What research did you conduct before deciding that this was the best market for you?

Who is your ideal client in this industry? What qualities do they possess? This could be, for instance, a person’s job title, location, or size of the organization. Your ideal client profile consists of these details.

If you’ve done more audience research and created personas centered around your target market, include them here as well.

5. Outline Sales Team and Resources

This is easy, create a list of your sales resources, starting with a brief overview of each sales representative in your team.

Include their name, title, number of years employed by the company, and their pay. What advantages do they have? How can you use them to help you achieve your objectives?

Include the gaps in your sales team and your plans to hire new personnel for these or other positions.

Then, list your other resources. These could be any resources you plan to use in carrying out your sales plan. Such as software or access to other divisions like the marketing team. This is a simple method for getting rid of any resources or tools you don’t require.

6. Establish Concurrent Activities

The next stage in establishing your sales plan is giving a summary of the non-sales activities that will occur while your sales plan is being implemented.

Include public marketing campaigns, forthcoming product releases, special offers, and any relevant events. This will enable you to make the most of these activities by allowing you to organize your sales methods around them.

7. Draft Your Business Road Map

In this step, write a summary of the overall road map for your company along with the areas where sales efforts can help to advance the strategy. To accomplish this, you will have to work together with the board of directors or CEO.

Most times, the company will already have a roadmap that stakeholders have approved. The sales manager’s responsibility is to create a sales plan that not only supports this road map’s objectives but also enhances them.

8. Determine performance benchmarks

Include benchmarks that will enable you to track the development and performance of the sales team.

Here’s where KPIs come in. They vary according to what your business needs, but here are some common ones:

➡ Annual contract value (ACV)

This is the average annual revenue generated from each customer contract. It is typically used in subscription-based businesses. It helps you understand the revenue impact of customer contracts and aids in financial forecasting.

To measure this:

ACV= total contract value/number of years.

➡ Customer lifetime value (CLV)

CLV is the total revenue a business can expect from a single customer during the period of their relationship. It helps provide insight into the long-term value of customers.

CLV=(Average Purchase Value×Purchase Frequency×Customer Lifespan)−Customer Acquisition Cost

➡ Return on investment (ROI)

This measures the profitability of an investment relative to its cost. This will help you evaluate the efficiency and effectiveness of investments, aiding decision-making.

ROI= (Net profit/investment cost) × 100

➡ Customer retention

This measures the ability of a company to keep its customers over a specific period. It indicates customer loyalty, which is crucial for long-term business success.

Customer Retention Rate=[(Customers at End of Period−New Customers Acquired​)/ (Customers at Start of Period)] ×100

It’s also important to identify the technology (analytics software or sales CRM) that will be used to measure success.

9. State Your Action Plan

After outlining your goals, you must describe how you plan to achieve them.

You can organize your action plan quarter by quarter, month by month, or week by week. You need to include a detailed description of all the sales activities and approaches you plan to use. Also, include the deadlines and checkpoints for each phase.

Sort your action plan into the following departments: finance, sales, and company growth.

10. Prepare Your Budget

Budgets vary from team to team and company to company, but regardless, you must incorporate your budget into your sales plan.

• How are you going to keep track of the money you spend on technology, equipment, salary, and new hires?
• What will be your top priority in a tight budget situation, and what should you cut?

The budget section should reference your action plan as well as the sales team and resources page to explain the expenses.

Choosing the Right Type of Sales Plan for Your Team

1. Customer Profile

A customer profile describes the kind of customer you think might use your product. It will include background, characteristics, industry, and factors that influence decisions. 

By removing ineffective leads, your sales team can concentrate on the target consumer by developing a customer profile. 

Use this plan whenever you need to refine your target audience. This could be during initial market research, after a product launch to a new market segment, or even regularly to ensure your sales efforts are focused on the most profitable customers.

2. Buyer’s Guide

A buyer’s guide is an informational document that lists the features and benefits of the product your business offers. 

This is a helpful document for your sales staff as well as for a potential buyer who wants additional details about the product before making a purchase. 

This plan is ideal for situations where your product is complex or has many features. It’s particularly helpful when your sales team needs a reference document to explain product details to potential clients. You can also provide buyer’s guides directly to potential customers as a resource during the sales cycle.

3. 30-60-90-Day Plan

This is specifically designed for onboarding new salespeople. The structured approach ensures new hires gain the knowledge and skills they need to succeed.

➡ 30 days: This is usually the start-up period, during which time sales staff are onboarded. They will get knowledge of your target market, your company’s procedures, and the products they will sell throughout this period.

➡ 60 days: During this time, your new hires can role-play and conduct simulated sales calls. They also deliver sales pitches and participate in coaching sessions to put what they’ve learned into practice.

➡ 90 days: At last, release your sales team members to use their newly acquired abilities in the real world. Now is the time to evaluate their work, offer suggestions, and make any required changes.

4. Market Expansion Plan

When entering a new market or region, a market expansion plan makes the target metrics and action list more clear. A target market that is located in a new geographic area is employed with this sales plan concept.

Include information on target client profiles, account distribution fees, and even the time zones in which your sales representatives are located.

This plan is crucial whenever you’re entering a new market. It helps you define your target audience, sales strategy, and even logistical considerations like time zones for your sales team.

5. Marketing-alignment Plan

Use this plan if your marketing and sales teams are not working cohesively. A marketing-alignment plan helps ensure your messaging and sales presentations are consistent and targeted towards the same ideal customer profile.

6. New Product/Service Plan

This plan is vital for the successful launch of a new product or service. It helps you develop a sales strategy, identify competitive threats, and set up clear metrics to track your progress towards revenue and growth goals.

Product Sales Plan Template

Are you looking for a simple template to use for your sales plan? Here is one for you.

Frequently Asked Questions

1. How do I conduct market research for my sales plan?

Effective market research involves:

• Analyzing industry trends
• Studying competitors
• Gathering customer feedback
• Using data analytics to understand market demands and identify opportunities.

2. What should be included in the market analysis section of a sales plan?

The market analysis should include details about:

• Target market
• Customer demographics
• Market size 
• Competition Landscape
• Important market trends

3. How should I allocate my sales budget?

Based on your anticipated activities, sales techniques, and required resources, allocate your sales budget. Consider the costs of training, promotional events, sales tools, and marketing.

4. How do I monitor and evaluate the success of my sales plan?

Make use of data like revenue, sales volume, conversion rates, and CLV. Review performance against this measure regularly and make necessary strategy adjustments.

5. How do I create a value proposition for my product sales plan?

A value proposition should clearly state the special benefits and value your product provides to users. Pay attention to resolving the issues and pain areas of your customers.