What is Sales Quota Management

• 1.What is sales quota management? http://www.incentivessolutions.com/products/quota-managementmodule/

2. Sales quota management plays a vital role in achieving the sales target. It is important effectively manage sales quota for optimal benefits. Managing sales quotas are often time consuming and might lead to errors. Automating the process of sales quota management provides an ideal solution. It saves time, maintains standards and eliminates errors. Sales capacity can be easily balanced by switching on to automated process. 3. Assigning individual sales target to a sales unit is known as sales quota management. The sales unit can be a sales person, distributer, dealer or territory. Sales quota is expressed in terms of goods, services or dollars. Sales quota is set by the market unit to achieve to achieve sales target for a specific period. Sales quota can be further broken down monthly or quarterly. 4. OBJECTIVES OF SALES QUOTA 5. It is used as a tool for measuring sales performance Sales target is set and performance level is compared against target to analyze salespersons performance Enables to control performance Motivating tool for the sales persons Enables identification of strengths and weakness Increasing the standard of performance 6. Sales can be controlled by setting sales quota for sales volume, performance and special activities. Any excess expenditure is controlled by the quotas. Sales performance is improved and provides greater control over reporting. Sales persons are motivated when the quotas are linked with incentives. This motivates the sales persons strive for achieving higher sales level Sales performance can be analyzed and poor performance can be improved with trainings in the required field. This helps to increase productivity and performance. Sales strategy is aligned to achieve the objectives. 7. VARIOUS TYPES OF SALES QUOTA 8. Sales volume: Products are easier to manage through sales volume. Unit sales volume is measured in petrol/milk/machinery. Point sales volume is used when company is interested to make profit with target. 9. Gross margin/profit: This is defined as cost of goods sold from sales volume. 10. Expense quota: Firms control any excess expenses 11. Activity quota: Activity is defined, time required for achieving activity is calculated, analyzing important activity and prioritizing activity 12. Combination quota: This includes a combination of selling and non-selling activity. 13. Sales quota is set depending upon various factors Territory potential Part sales expenses Total marketing estimates Executives judgment Sales peoples estimates Compensation plan 14. Sales quota management is used to increase sales level in a specified period of time. It provides a wide coverage of market enables effective customer service, evaluates sales force, improves productivity of selling and marketing and enables development of an effective sales team.