As the new year rolls in, sales teams across the UK are preparing for the challenges and opportunities that lie ahead. For Sales Development Representatives (SDRs) and Account Executives (AEs), this time of year is crucial for setting the stage for success. Annual planning is the foundation for hitting your sales targets, and understanding how to work backwards from your goal is a key strategy for making those targets a reality.

The starting point

Before diving into the specifics of sales tactics, it’s vital to start with a clear understanding of your numbers. As an SDR or AE, you likely have an annual sales target set by leadership. To begin the planning process, take that target and break it down into manageable milestones. This is the first step in setting yourself up for success throughout the year.

Start by calculating your monthly and quarterly goals. For example, if your annual sales target is £1,200,000, you need to know how much revenue needs to be generated each month and each quarter to stay on track. Working backwards from your goal helps ensure that you don’t miss key opportunities to hit your target.

Example:

• Annual target: £1,200,000
• Monthly target: £100,000
• Quarterly target: £300,000

By setting clear targets at different time intervals, you’ll have a clear vision of what needs to be done at each stage of the year. This will help you stay focused and adjust tactics as necessary.

Working backwards to your sales goals

Now that you know the revenue targets you need to hit, it’s time to work backwards. This involves breaking down your sales process into smaller, actionable steps.

1. Lead generation and outreach (SDRs)

For SDRs, the first step is generating enough qualified leads to pass on to AEs. This means working closely with marketing, using tools like CRM platforms, and leveraging LinkedIn, email campaigns, and other outreach methods to fill the top of the funnel. The number of leads you need to generate will depend on the conversion rate from qualified leads to opportunities.

Let’s say your sales cycle shows that 20% of qualified leads convert into opportunities. If your goal is to secure 50 opportunities this quarter, you need to generate 250 qualified leads.

Example:

• Quarterly target: 50 opportunities
• Lead-to-opportunity conversion rate: 20%
• Number of leads needed: 250

This is a simple formula that can help guide your outreach efforts and ensure you’re generating the right volume of leads for AEs to close.

2. Opportunity conversion and closing deals (AEs)

Once the leads are passed along to AEs, their task is to convert those opportunities into closed deals. To do this effectively, AEs need to have a deep understanding of the buyer’s journey and be able to demonstrate the value of your product or service at every stage.

Working backwards from your quarterly or annual targets, determine how many deals need to be closed to hit your sales goal. For example, if your average deal size is £25,000 and you need to close £300,000 in revenue for the quarter, you need to close 12 deals.

Example:

• Quarterly target: £300,000
• Average deal size: £25,000
• Deals needed to hit target: 12

Having this breakdown will help AEs prioritise their time, focus on high-value prospects, and adjust their approach if necessary to close deals more efficiently.

Setting key performance indicators (KPIs)

As you work backwards to hit your sales targets, it’s essential to establish key performance indicators (KPIs) for both SDRs and AEs. KPIs help keep track of progress and ensure that efforts are aligned with the bigger picture.

SDR KPIs might include:

• Number of leads generated per month
• Response rate to outreach emails
• Number of discovery calls scheduled
• Number of qualified leads passed to AEs

AE KPIs could focus on:

• Number of opportunities closed per quarter
• Conversion rate from opportunity to closed deal
• Average deal size
• Length of sales cycle

By monitoring these KPIs regularly, you can identify trends, spot potential issues early, and make adjustments to your sales strategies. Annual planning isn’t just about setting targets—it’s also about tracking and optimising your efforts to hit those targets.

Being flexible and adjusting

While annual planning is crucial, flexibility is equally important. Throughout the year, you will encounter various challenges, from shifts in the market to changes in customer preferences. This means that while you should have a clear plan in place, you must also be prepared to adapt your approach when necessary. Regularly review your progress and adjust your tactics accordingly to stay on track.

Final thoughts

Annual planning is an essential activity for both SDRs and AEs to ensure they are aligned with company targets and on track to meet their goals. By understanding your numbers, working backwards to determine what actions you need to take, and setting clear KPIs, you’ll have a roadmap that guides you to success. With flexibility and a constant focus on optimisation, you’ll be able to handle whatever challenges the year brings while staying on course to hit your sales targets.

As the year kicks off, remember: the more you plan, the more equipped you’ll be to make 2025 a successful year for sales.

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