Sales Quota Derivation And Allocation

Quota setting is one of the most critical tasks for a sales organization. The need to factor in and allocate diverse data makes quota setting a complex challenge. Quotas must equitable, challenging, and achievable, and they must be effective in driving consistent team and individual performance.

B2B sales operations leaders must formulate the right “recipe” to set quotas so that reps are challenged with achievable goals and incentivized to achieve them. Reviewing the distribution of quota attainment across the company compared to a desired normal distribution allows sales leaders and sales operations to see how successful they have been in the current or prior years, while also considering revenue growth assumptions and sales incentive budget. In this report, we describe six steps for deploying sales quotas to achieve target performance.