3 Steps To Create An Accurate And Motivational Sales Quota

Team ThunderAct

Sales quotas play a huge role in business. They serve as a guide for the sales team to figure out how to attain business growth.


That said, setting sales quotas is not as simple as one may think. It involved proper analysis. You need to ensure that your sales quota is accurate and motivational. Having too high quotas will increase the risk of alienating, frustrating, and pressuring the sales team. Setting them too low will lead to low sales.


Understanding Sales Quota

Before proceeding to the steps you can take to have a good sales quota, you need to understand what it is in the first place.


Generally, sales quotas refer to the targets that company managements set for a certain period. It can be for a specific sales team, individual sales representative, or even a set region. 


Sales quotas are beneficial to sales teams. They help in more accurate sales forecasting, better monitoring of the activities of sales representatives, clear expectations for sales representatives and teams, and motivate representatives and teams to maintain a certain level of activity.


Creating Accurate and Motivational Sales Quotas

Effective sales quotas are not the only tools to achieve goals and milestones. They can help in delivering excellent experiences to customers, which can lead to more revenue.


Here are three steps you can follow to create an accurate and motivational sales quote:


Have individualized/personalized quotas

Everyone is different. The same is true for sales representatives. There are various factors to consider when creating quotas for the sales team. For example, your sales representatives cater to different territories. Their expertise, skills, abilities, and experience vary. The products or services they handle may also be different. That is why you cannot expect all of your sales representatives to perform similarly.


Those who are high-performing should feel challenged to avoid complacency. Newer team members and those assigned in difficult territories should be motivated by their quota. So, avoid overwhelming them.


Consider activity-based quotas

One way of reducing the stress and preventing too much pressure on sales representatives is to opt for an activity-based quota. Set achievable goals. Think of the concept of small wins. With these, you can motivate and energize your team members.


Sales representatives are focused on making sales. That means there are times when it is difficult to keep track of their activity-based quotas. Customer data management software will make it is easier to monitor interactions with potential clients. Sales representatives also get to see how much work they can accomplish to remain motivated despite the overall quota.


Stay focused

Quotas are goals. You do not simply set them and forget that they exist. You have to look at them regularly and evaluate whether they are still accurate. Are they too much? Do they affect the motivation of your sales team?


Accurate quotas can help sales teams and managers see if there are weaknesses and roadblocks in the sales pipeline. They also provide insight into the sales team’s productivity and success rate.

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