Whether each member of your sales team is assigned a target activity quota, forecast quota volume quota, or a profit quota – they all have one goal: meet it and beat it. Unrealistic sales quotas can cause a huge amount of stress. But how can you set realistic quotas for every member of your sales team?
As a sales manager, determining how much revenue or sales activities each member of your team is responsible for can be a tricky proposition. Are your top performers really performing at their peak? What is the probable time to revenue for the guy you just met for a second interview?
To underline how difficult this process has become, one need only look at some of the abysmal numbers delivered by sales organizations. CSO Insights reports that, on average, only 53% of sales pros even make quota! Are you suffering from this insidious form of revenue loss?
Creating realistic sales quotas can make or break the moral of the entire team. And their success is your success. After all, your own compensation is probably tied to whether they hit the quotas you have assigned.
While platforms like Salesforce have granted insight into real-time sales activities, to ensure that realistic sales goals are set most sales organizations still turn to the past, using historical sales data and the quota attainment metrics of previous sales cycles.
What many sales managers are missing is that new technology makes it possible to predict sales performance for both existing sales teams – and new hires with no track record at all.
How to Predict Your Team’s Sales Quotas:
Step 1: Assess Like a Boss
Forget the multiple choice, magazine-style sales personality tests of the past. The newest sales assessment tools like Selleration’s UPtick use cutting-edge technology like virtual reality to submerge your sales team and potential hires into a real-world sales environment and measures every decision they make.
And don’t forget to assess all the reps on your team – even the top performers. The assessment is collecting data to help you calculate realistic sales quotas. Having insights into the selling behaviors of reps who are succeeding is as, if not more, important as having data on underperformers.
Step 2: Follow the Data
The data generated from sales assessments takes all the emotion out of the equation and grants management line of sight into each rep’s strengths and weaknesses. This makes it easier to devise smart, personalized sales quotas for every rep on the team. Data can help take the emotion out of planning.
Step 3: Create a Gold Standard
Look at the stacked rankings of your team not just by their sales history but by their selling ability – and potential. For instance, which of your reps have:
- High Selling Intelligence™ Scores
- Excel in a particular area
- Have weaknesses that could be strengthened through Sales Development
- What Selling Behaviors are delivering the best results
- What behaviors, skills, and competencies are required to round out your team
…and the ability to make quota!
Use the data to create a profile of the quota-making sales rep. A leading financial services company used Selleration’s UPtick™ to do just that, creating a baseline of the existing team, and used the data to identify two promising candidates. After one full year on the job, carrying first year quotas of $20 million, Candidate A achieved 116% of quota, and Candidate B, identified by UPtick™ as a high achiever, completed her rookie year at 141%.
Together, the two new reps brought in over $51.4 Million in year one, an 84% increase in revenues over their predecessors. Read the full case study.
Are your reps achieving quota? Do you need more help in assessing who has the raw Sales talent and who doesn’t? Think about how you could assess not just your new hires for potential but your existing team for greater growth and development.