What is the sales Quota? A sales quota refers to a sales target that the sales rep of a company needs to achieve at the end of a specific period. They can be daily, monthly, quarterly, or yearly. Sales targets can be measured in sales, profits achieved, new customers, and other ways.
Why Do You Need Sales Quotas Sales quotas help in analyzing your sales team performance. They encourage the sales team to work collectively towards meeting the organization’s goals. As per a survey, 67% of sales reps don’t meet their individual quotas.
Different Types of Quotas ● Revenue Quota: The goal here is to earn a certain amount of revenue by selling a specific number of units. ● Forecast Quota: These are generally assigned based on region, market share, prior product, and revenue target. ● Activity Quota: Performance measures to track the activities performed by a salesperson. ● ● Volume-Based Quota: Reps are required to close a certain number of deals or sell units or services to meet the goal. ● Account Opportunity Quota: These quotas consider variation in the market as well as attributes like revenue retention, penetration, and more. A quota setting requires strong analytical skills and deep insights into the business. The organization’s standard of performance will form a baseline to set realistic goals for your sales reps.