Did you set the quotas right to drive revenue growth? The purpose of today’s show is to demonstrate how to link the company objectives to sales targets through quota setting. Leverage this use-case to evaluate how you set your quotas. John has a proven record of increasing profitable recurring revenues faster than his industry and his competitors in a crowded SaaS market.
Our guest today is John Young, the SVP of Global Sales at NetFortris. John and I use the How to Make Your Number in 2018 Workbook to answer questions about Quota Setting. Access SBI’s How to Make Your Number in 2018 and review Sales Strategy section and flip to the Sales Engagement area, Phase 11 Quota Setting, found on pages 391 – 394.
John is uniquely qualified to speak on this topic with proven experience in quota setting to guide his sales team’s revenue attainment. Watch as John demonstrates how to link the company objectives to sales rep targets through quota setting.
Why this topic? A company’s revenue goal needs to be intelligently allocated to divisions, regions, districts, territories, and sales reps. Unfortunately, it rarely is. Quota attainment, a metric tracked by most sales teams, often lies to executives. Reps who make quota do so because their quota expectation was based on the potential of a sales territory. Reps who miss quota do so because their quota expectation was not based on the potential of the assigned sales territory.
In the first segment of the program John shares the process for quota setting, and how to link the company objectives to the individual sale rep revenue goals. The peanut butter spread approach is replaced with an intelligently allocated goal setting to achieve the company’s revenue goals across the sales team.
Listen as John describes (10:53) the qualitative and quantitative inputs required to accurately assign quotas. John explains how to intelligently prioritize based on spend potential and a propensity to buy formulas play into your quota setting.
We wrap up the show (18:32) by discussing how to gain buy-in internally with the sales reps and at the executive level for the quota plan. This involves also having a clear workload capacity model built indicating how many live deals, accounts, and prospects a sales rep can handle.
Have expectations gone up and left you wondering if you have the right strategies to support your revenue growth goals? Here is an that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate your Sales Strategy against SBI’s emerging best practices to find out if:
- Your revenue goal is realistic
- You will earn your bonus
- You are set-up for success in 2018