The Sales Quota Setting Process And Details For Good Sales Quota
If sales reps only have one Quota meeting their quota they’re selling themselves short . Hold reps accountable to smaller weekly or monthly Quotas, and sales team will increase the likelihood they’ll meet their bigger number.
Smaller Quota let your reps build confidence with incremental wins.
They also help track your rep’s progress toward larger Quotas, giving you more time to work with struggling reps.
Write down the Sales Quota.
Begin by generating a list of potential Quota. In the end, what is it that you want to achieve Writing down Quota makes them tangible and gives them more force. However, it is important that the Quota are well thought out.
Determine how to measure Quota achievement.
A good Quota has a definable endpoint that can be easily measured. Identify measures that indicate when the Quota has been achieved. Depending on the Quota, there might be several measures that can be used to evaluate achievement select those that are most appropriate.
Having measurable Quota is important because it is easier to gauge when the Quota has been reached, and it provides a yardstick to measure progress toward the Quota. By being measurable, it is easy to see if you are falling behind and to make adjustment early enough to still meet the Quota. Not only is it motivating to see progress toward the accomplishment of the Quota, it is also important to know when to stop working on it.
Enter the metrics that will be used to measure Quota achievement in the second column of the Quota Setting Worksheet.
Establish a deadline for achieving the Quota.
Determining the amount of time needed to reach the Quota and setting a deadline help to create a realistic sense of urgency and provide the motivation necessary to attain the Quota.
When establishing a deadline, it might be necessary to break an “overall” or large Quota into several smaller ones to make it easier to manage the Quota-setting process.
Quota may not be achievable until other Quota have been reached training for a specific skill before achieving a promotion, so the deadlines that are established should reflect this. When setting deadlines, consider:
• Priorities — which Quota are most important
• Prerequisites — do any Quota require another Quota to be accomplished first
• Reality — what organizational, unit, or individual constraints exist in accomplishing this Quota
• Measures — does the timing of any of the measures affect the deadline
Set SMART sales Quota
Sales Head have probably heard of SMART Quota already. But Sales Head always apply the rule. The simple fact is that for Quota to be powerful, they should be designed to be SMART.
Set Specific Quota
Sales Quota must be clear and well defined. Vague or generalized Sales Quotas are unhelpful because they don’t provide sufficient direction. Remember, Sales Head need Sales Quotas to show Sales Head the way.
Make it as easy as Sales Head can to get where Sales team want to go by defining precisely where Sales want to end up.
Set Measurable Quota
Include precise amounts, dates, and so on in Sales team Quotas so Sales Head can measure Sales team degree of success. If Sales Quota is simply defined as “To reduce expenses” how will Sales Head know when Sales Head have been successful.
In one month’s time if sales team have a 1 percent reduction or in two years’ time when Sales Head have a 10 percent reduction.
Without a way to measure Sales team success Sales Head miss out on the celebration that comes with knowing Sales Head have actually achieved something.
Set Attainable Quota
Make sure that it’s possible to achieve the Sales Quotas Sales Head set. If Sales Head set a Sales Quota that Sales team have no hope of achieving, Sales Head will only demoralize Sales and erode Sales team confidence.
However, resist the urge to set Quota that are too easy. Accomplishing a Quota that Sales Head didn’t have to work hard for can be anticlimactic at best, and can also make Sales Head fear setting future Quota that carry a risk of non-achievement.
By setting realistic yet challenging Quota, Sales Head hit the balance Sales need. These are the types of Quota that require Sales to raise the bar and they bring the greatest personal satisfaction.
Set Relevant Quota
Quota should be relevant to the direction Sales Head want Sales Team life and career to take. By keeping Quota aligned with this, Sales Head will develop the focus Sales Head need to get ahead and do what Sales Head want. Set widely scattered and inconsistent Quota, and Sales Head will fritter Sales Team time and Sales Team life away.
Set Time-Bound Quota
Sales Team Quota must have a deadline. Again, this means that Sales Head know when Sales can celebrate success. When Sales Head are working on a deadline, Sales Team sense of urgency increases and achievement will come that much quicker.
