Creating Sales Quotas
Sales quotas are simply goals that help your sales team understand what’s expected of them. It’s you, however, who needs to set those expectations. Quotas may not always be based on total sales, but on other important metrics, such as number of appointments set up or additional sales to existing customers.
Setting quotas, and rewards for attaining those quotas, can be a complex process. It’s important that quotas be specific, aligned to a defined timeline, measurable, and clearly communicated to your sales team.
New salespeople shouldn’t be expected to meet your standard quotas when initially hired. You can set a less aggressive quota for the first month or two and then gradually ramp it up to the point where it matches expectations for the rest of your sales team.
Also consider your business patterns. If, for example, you run a seasonally oriented business, your quotas should be more flexible to reflect the impact of seasonality.
If you set quotas that aren’t generally being met, you’ll need to either adjust your expectations or consider giving your sales team better sales tools. This can include improved promotional tools such as introductory emails and brochures, access to better customer relationship management (CRM) software, or additional training in product benefits.
And as you monitor sales against quotas, ask your sales team for their own suggestions on how they can improve their performance.