Quota Programs: the Foundation for Revenue GrowthBy: Alexander Group Sales Quotas
Setting and allocating quotas is often ranked as one of the top sales effectiveness issues that companies face. The quest to develop and maintain an effective quota program is critical. Get it right and you motivate the sales force, ensure appropriate sales compensation and drive predictable cost of sales. Get it wrong and costs get out of hand or top talent leaves. Or worse, both happen!
A few important considerations can help you avoid skewed and undesirable quota attainment across your sales organization:
- Base quota goals on market potential and realistic corporate expectations
- Use internal and industry benchmarking to make decisions with confidence
- Simplify sales crediting rules and remove emotion from the equation
- Start the process early, so quotas are in place when the new fiscal period begins
Critical outcomes: A good quota program aligns your field sales force with corporate strategy, effectively linking performance and pay and promoting dialogue between managers and sellers. This ensures accountability and differentiated pay between high and low performers.
Revenue leaders should strive to consistently achieve balanced quota attainment across geographic regions and job roles. Great quota programs produce these types of results.
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