To get to the right numbers in 2016, you must have the discipline to start with what the market will require, and then match your corporate strategy to the market. Your product and marketing strategy is built to support your corporate strategy.
And only then can you create your sales strategy, including setting realistic quotas for the year.
Setting individual territory quotas is part of the overall process. When will Sales staff want to know their quotas?
As soon as the sales staff gets wind of the 2016 planning process, you can bet that they will want to know (just like you do), ‘what does this mean for me?’ And while it may be tempting to throw out a quick and dirty sales quota to keep reps from knocking on your door, don’t do it! Here’s Your Key To Setting Realistic Sales Quotas for 2016:
Setting Quotas is Part of Sales Strategy
Setting quotas is part of the overall sales strategy. It’s wrapped up and dependent upon the sales plan, engagement processes, organization structures and designs, channel partner organization and territory design as well as compensation planning.
Factoring all of these processes is the background for quota setting. In addition, quotas have to be realistic. Absent realistic fairness can cause a demoralized staff and costly turnover.
Defining the Solution
So what questions need to be answered in order to set quotas? In our research project How to Make Your Number in 2016, we’ve defined a handful of questions to help setting quotas:
- What is the potential of each account rep to produce? How much will each account contribute to the total for the year? Look at historical contributions as well as the product makeup for each account. Consider known changes for 2016 as well as the health of each account.
- What is the territory potential for each of your sales reps? How much of the total has each rep contributed in the past? How much has each territory contributed to the total? Where is the territory in the relationship lifecycle?
- Factor in the production capacity of each rep. Consider historical contributions as well as developmental position. How experienced is the rep on the products offered?
- What is the annual quota-setting process? Do you have a historically significant way of setting annual quotas that must be honored? Are there contractual considerations that need consideration? Are there special relationships between the account and your organization?
- What is the total organization quota spread across all reps?
- What is the quota for each rep against the organization’s total quota? How has the rep measured against organizational totals? Is the rep fully trained or are there developmental areas that will affect next year’s results?
- How can we measure quotas to determine organizational vulnerabilities? Compare quotas to prior years and determine where large variances occur. Where will quotas outstrip production capabilities? How can these problems be resolved to ensure maximum sales results?
- How will quota decisions be communicated to the team? Will one person communicate decisions to all teams? Will communications be live? Are there one-off situations that need individual attention? What are the potential issues that will be raised?
Quotas You Can Bank On
Setting quotas is completely dependent on having done the process work required. As with all data, if you take the time to ensure the “data in” is high quality, the “data out” will be high quality. That’s exactly what you need when setting sales quotas.
We spent an entire year researching how A-players consistently make their number. And then we developed the strategy workbook so you can make your number in 2016.
You don’t have to do it alone. We can help. And you won’t even need to leave your office, because we’ll send an SBI strategist to you. Just register for the “How to Make Your Number in 2016” workshop today.