The basic purpose of Quotas is to measure sales performance to predefined targets. But to be effective, it is essential to accurately identify the Key Performance Indicators (KPI) for each Sales Role. Quota Management cannot just be "one size fits all".
Establish Sales KPIs by Role
Sales key performance indicators (KPIs) are metrics that help sales organizations measure their effectiveness and efficiency, with the overall goal of improving methodologies and processes to drive sales.
For best results with Quota Management, it is essential that you identify appropriate KPIs for each Sales Role and create a mapping from your Sales and Activity data to your Quota Management in order to capture and measure performance to KPI effectively.
Different Types of Quotas by Organization and Role
To accurately measure of performance by KPI for each role within your sales organization, different types of Quotas must be established, based upon the type of product or service that your business offers and your particular sales processes.
The most common types of Quotas are:
- Revenue quotas – the total revenue received from sales
- Volume quotas – often related to the volume of physical product sold
- Profit quotas – set in place to reduce excessive discounting
- Activity quotas – number of sales calls or sales activities undertaken
The relationship between Quotas, Tiers and Accelerators
Quotas enable establishing targets for performance, but Quota Attainment-based Tiers (Tiers) and Commission Accelerators provide a structure to motivate sales performance and to pay competitively for different levels of performance. The Multi-Tier Accelerator Model is widely accepted as a powerful tool to motivate sales performance.
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| Multi-Tier Quota Attainment-based Accelerator example |
The Multi-Tier Accelerator model uses Quota Attainment percentages to increase commissions through a set of steps (Tiers), thereby providing Sales People increasing incentives that are sufficiently within reach to motivate additional effort to achieve each next Tier.
Pulling it all together for Revenue and Growth
For best impact on Revenue and Growth focus on the following guidelines:
- Accurately define Sales KPIs by Role
- Align Quotas with Sales KPIs for each Role
- Set Quota Targets to be realistic and achievable for the majority of the team
- Establish Multi-Tier Accelerators to motivate sales performance and to pay competitively for different levels of performance
About CloudComp Quota Management for Salesforce
CloudComp Quota Management is built into our 100% Salesforce Native CloudComp Commission Anything App and you can evaluate the fully functional app free for 30 days.
Contact Surfwriter today to learn more about how we can help you do Quota Management and Multi-Tier Accelerators right in Salesforce or to see a demo of our CloudComp Commission Anything App in action. Learn more at surfwriter.com/cloudcomp.
