The quest to develop and maintain an effective quota program is critical. Get it right and you motivate the sales force, ensure appropriate 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
What is a “good” quota distribution?
About 55-60% of reps should achieve 100% of their goal or greater.
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.
Case Study: This high tech software and services provider improved quota allocation by seller based on territory potential and historical contribution.
Revenue leaders should strive to achieve balanced quota attainment across geographic regions, job roles, and on a consistent basis. Great quota programs produce these types of results.
Watch this video to learn more about quota diagnostics:
Interested in learning more about the Alexander Group’s Sales Quotas Practice? Contact us today.