Measuring Marketing

Chapter 100 Sales Performance Quotas

Measurement Need

To understand how to structure sales quotas.

Solutioni

The following methods are useful guidelines for establishing sales volume quotas:

1. Last year's total company or territory sales numbers by product or customer
2. Last year’s salesperson's sales numbers by product or customer
3. Sales costs times a multiplier ( x 3, for example)
4. Corporate general administrative costs plus a gross margin
5. Revenue goals committed to industry analysts or shareholders
6. Total of the sales team's goals (by territory, product or customer) divided by the number of salespeople
7. Estimated income potential provided to the salesperson if he/she achieves 100% of their quota
8. Analyst’s projected annual growth rate for ...