What are the stages in setting sales quotas?
Being a leader means taking upon various responsibilities. Any leader would only want what is best for their team. Similarly, being a Sales leader means doing thorough research, making effective decisions, implementing new strategies, learning from mistakes, and setting up goals for the sales team.
Setting up a quota that works best for you and your team is very important. It leads to creating an atmosphere where people feel motivated and driven at all times. Sales reps also prefer the quota system as it gives them an objective and helps earn incentives/rewards. A leader has to make tough decisions and setting up an intelligent sales quota is one of them.
Here are some key concepts one should keep in mind while setting up a Sales quota:
1. Make Technology your Friend
The world is shifting to a digital platform and so it makes sense to stay up to date with the latest technology and trends. Using CRM to monitor data and analyze that data would be the first example of how useful technology can be in a sales team. Being organized improves the efficiency and effectiveness of any process. Adding events, meetings, holidays, etc. to your work calendar helps you plan accordingly and stay organized. Keeping track of leads, meeting deadlines, etc. are also some of the many things that can become easier if you use technology for these purposes. Adding to this, you can take it one step further and use technology that collects and analyzes data automatically. This way, you won’t have to worry about manually adding details which also ensures that human error will be minimal. Doing this would save you a lot of time too.
2. Realistic Goals
Setting an unrealistic goal amounts to nothing. You should know the potential of your team and should prepare a plan accordingly. Some companies set unachievable goals that demotivate the team members and harm their performance. The aim is to improve with time and achieve more. This does not mean you skip all the steps to reach your long-term goal. Sales incentives always positively impact any reps’ performance, but giving them that chance is in your hands. Yes, you need to set quotas that will help the reps come out of their comfort zone and push their boundaries but also make sure that the quotas you set are realistic and achievable.
3. Discuss and Take Feedback
You are only a leader because of your team. Every professional performs different duties and so it becomes important to take into account how everyone feels about the Quota you are planning for a particular period. Communication is key. Sales reps are the ones who communicate with the customers. That is why it becomes very important for them to be a part of this discussion. Their thoughts might improve the plan and help the company grow. Teamwork makes the dream work. So make sure that you ask them for ideas or even feedback.
4. Don’t Stick to the Past
Say last year your company had great success, the strategies you put in place worked like you thought they would, all the quotas were achieved, everything just fell into place. Who is to say that the same ideas, same goals are ideal for this year too? The world moves quickly, and if you do not keep up with it, you will be left behind. Implement new strategies, generate new ideas that will help your company grow. Analyze the market, discuss with other team members, know your target market and work accordingly.
Setting the right quota is crucial. You can only expect your team to give splendid results if goals are achievable. Make sure you consider all factors and only then implement your ideas.