How to identify unfair sales quotas?
Why sales organizations around the world use sales quota achievement as a primary performance metric? It is because sales quotas can help provide visibility to the salesforce on the target that needs to be hit and align the sales force to broader business objectives. In addition, quota achievement plans are easy to administer by HQ and easy to understand by the salesforce which results in increased motivation and engagement of the salesforce.
Every incentive cycle, the most important challenge faced by the sales organization is to set a fair but challenging quotas. Needless to say fair and accurate sales quota plays a very important role in business growth and an unfair quota results in disengagement of the salesforce and larger attrition. This makes it extremely critical for the sales organization to identify any performance biases as early as possible to limit the negative impact of inherent quota methodology bias. We have made an infographic illustrating what are some of the potential metrics/ statistical parameters to look at quickly identify any bias in your performance calculations due to unfair quotas.
This infographic is a continuation of our previous blog post, Quota Setting - Dos and Don'ts
Let us know in the comment if you have anything to add. Would you like to see our "Quota Setting" module in action? Please feel free to reach out to us at - firstname.lastname@example.org for more details.