From the course: Sales Management Foundations
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Setting sales quotas
From the course: Sales Management Foundations
Setting sales quotas
- A sales quota is a target amount that reps are expected to sell. Quotas are an important sales management tool. Setting quotas links the sales rep directly to the firm's strategy and to the sales task. They help focus resources on high potential areas. But most importantly, quotas motivate. Let's look at how you do it. Step one is to collect data. Look at each territory's potential market sales versus the rep's sales history. Be sure to gather data for a time period that is comparable to the quota setting period. One year, for example. You need to assess whether the rep is at, above or below the potential of the territory. Are they selling what you would expect given that potential? The next step is to understand territory differences. Not all territories are created equally. And when you design the territories, you should have noted things like different economic conditions, the competitive situation, and travel…
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