How often do sales reps on your team hit their monthly quota?
Last month, half your team hit quota. But a few months ago, only one rep managed to cross the line. These fluctuations in quota attainment have a huge impact on your overall sales results and can be the difference between making your number, and completely missing it.
As a sales leader, you’re obsessed with knowing who hit quota, who didn’t, and why. Quota attainment over time is one of the clearest indicators of whether you’re setting the right sales goals, whether your team is able to achieve those goals, and if your revenue growth is consistent.
Every sales leader wants smooth and even quota attainment, without huge spikes or dips in revenue. Your business needs a steady revenue stream, but you can’t achieve that without understanding exactly how your team is measuring up to their goals. By tracking the right sales metrics, you can clearly see who is struggling with quota and who consistently achieves their goals.
Smooth Quota Attainment
Why does it matter if your reps are consistently hitting their number, rather than swinging wildly up and down month to month? Consistent quota attainment is a sign that your sales team is operating at a high level. It means that your leads are high quality, your team is engaging those leads the right way, and your sales forecast is fairly predictable. Unpredictable revenue flow can be dangerous for even the most stable business. If you don’t know when money is coming in and you’re not growing revenue over time, you won’t be able to invest properly in growing other aspects of the business.
Setting the Right Quotas
Though it might seem risky, it’s OK if your team misses quota slightly some months. This is because you should set aggressive sales quotas to encourage reps to push themselves to new heights. Ideally, you should have one or two reps that exceed their quota, while the rest consistently achieve between 80% and 90% of quota. You want a few reps to be able to hit their goals each month, earning generous payouts and motivating the rest of the team to push themselves harder the next month. The quota should act as a driving force behind your entire sales team.
A Heat Map Report
Instead of looking back and manually pulling the numbers to see who consistently attains quota, there’s an easier way. Your sales team needs a Heat Map report, which shows the reps who hit quota, who missed it, and by exactly how much.
In this report, you can clearly see the reps on your team who consistently make quota in green, who comes close in yellow and who misses by a mile in red. For example, Andrea is an amazing performer, hitting quota 9 months of the year and exceeding her quota on average by 526%. You can also see that Lauren started the year struggling to attain quota, and slowly but surely improved to hit quota the past two months. This report makes it easy to spot these high-level patterns across your sales team.
This data can also tell you if your sales quotas are set too high. If you look at the Heat Map report and no one on your team has achieved quota for months, it may be that you’ve set an unattainable goal. You’ll see that your reps consistently are unable to hit their number — even your top performers. This means you need to make an adjustment to your goals, and keep an eye on next month’s Heat Map report. With the right quota, your reps will be motivated to close more deals.
If your quotas are set right, now you just want to know how you can drive more of your reps to achieve their goals. With this data, you can begin to dig into what these top reps are doing differently than the rest. Lauren, for example, has been able to step up her performance significantly in the past few months. What’s behind that change? Whether you offered her more sales coaching or she’s giving better demos, that is something you should dig into and try to understand. Do in-depth reviews with top reps and learn which of their personal selling methods are most successful. Then, expand the learnings across your sales team and incorporate these tactics into your sales process. With the right support, every rep on your team can start to have smooth quota attainment over time.
Every sales rep must have their eye on the prize — their personal sales quota. If they exceed it, you’re thrilled. And if they don’t, you need to know why. With a Heat Map report, you’ll know exactly what’s going on across your sales team, and be able to improve quota attainment over time.