Audio Transcript Auto-generated
- 00:02 - 00:04
in this lesson, we covered the queue in territory and
- 00:05 - 00:05
kota planning.
- 00:06 - 00:10
We specifically focus on the objective behind kota planning, tracking
- 00:10 - 00:11
and realignment.
- 00:15 - 00:19
The objective for quota setting is to identify, communicate and
- 00:19 - 00:24
track seller targets within an organization's coverage model so that
- 00:25 - 00:27
actionable goals can be aligned with corporate object.
- 00:29 - 00:33
This is really important as sellers need clarity on the
- 00:33 - 00:34
types of quarter they need to achieve.
- 00:36 - 00:38
We will cover the types of quota in a subsequent
- 00:39 - 00:44
chap. An organization may establish, for example, or marketing quota
- 00:45 - 00:48
for the number of events or promotions the marketing department
- 00:49 - 00:53
needs to hold in a particular period or they may
- 00:53 - 00:57
define quota as the number of leads the department needs
- 00:57 - 00:59
to source for the sellers pipeline.
- 01:02 - 01:05
Another example is where a call center may be assigned
- 01:06 - 01:08
a quota for the number of calls they need to
- 01:08 - 01:11
make or the number of demos they need to generate
- 01:13 - 01:13
for a seller.
- 01:14 - 01:16
It could be new opportunities they need to close or
- 01:17 - 01:21
the revenue they need to generate clarity on established order,
- 01:22 - 01:31
eliminate ambiguity on the required performance achievement setting quotas Against
- 01:32 - 01:37
the coverage model provides clarity on required achievement quotas are
- 01:38 - 01:41
set by leadership in an organization to provide sellers clarity.
- 01:43 - 01:47
Whether the corporate strategy is market growth, stability or renewal
- 01:48 - 01:53
sense, leadership can delineate the quiet corporate objectives across all
- 01:53 - 01:57
channels in the coverage model to ensure that the quota
- 01:57 - 01:59
setting meets all the required objectives.
- 02:02 - 02:04
Sellers have clarity on the type of quota they need
- 02:05 - 02:05
to achieve.
- 02:06 - 02:09
This allows them to focus on customer and territories and
- 02:09 - 02:15
make that achievement more probable and measurable, clear metrics allow
- 02:16 - 02:17
measurement of current performance.
- 02:18 - 02:21
It also allows for a mindset of what can be
- 02:21 - 02:24
achieved versus what has been achieved in the past.
- 02:25 - 02:31
In a target market, the organization's transparency allows them to
- 02:31 - 02:35
focus on increasing their productivity and revenue realization within a
- 02:35 - 02:36
territory or a market.
- 02:40 - 02:43
Tell us understand the metrics for their performance evaluation.
- 02:45 - 02:50
It also allows both the seller and the organization to
- 02:50 - 02:55
manage their cost of sales, cost of customer acquisition and
- 02:55 - 02:56
maximize revenue realization.
- 03:00 - 03:05
Additional benefit is that it provides visibility for the performance
- 03:05 - 03:06
against plan.
- 03:08 - 03:12
Given the shared understanding of the performance metrics, sellers and
- 03:12 - 03:17
organizations can track performance to plant, there is opportunity to
- 03:17 - 03:23
proactively monitor seller performance and provide the required organizational support
- 03:24 - 03:29
to manage against market impact, seasonality changes or adjust for
- 03:29 - 03:30
operational efficiencies.
- 03:33 - 03:39
Leadership can also defined compensation plans that drive the right
- 03:39 - 03:40
seller behaviors and outcomes.
- 03:42 - 03:47
People analytics help organizations learn more about what behaviors differentiate
- 03:48 - 03:52
their most successful salespeople and implement them in the lower
- 03:53 - 03:53
performing segments.
- 03:56 - 03:59
Then a productivity can be optimized by building a coverage
- 04:00 - 04:03
model that aligns the right type of sellers to the
- 04:03 - 04:04
appropriate customer segments.
- 04:08 - 04:12
Most studies show that the success in selling is highly
- 04:12 - 04:17
correlated to three things firstly, the time the seller's spend
- 04:17 - 04:19
with their customers and prospects.
- 04:21 - 04:25
Second, it is based on how large supportive or healthy
- 04:25 - 04:33
networks the sellers have within their organization, hug what kind
- 04:33 - 04:36
of time and attention their managers and other senior people
- 04:36 - 04:44
in their own organization provides a good coverage model aligned
- 04:45 - 04:47
with the appropriate effective quota setting.
- 04:47 - 04:51
Also helps leadership, managed channel capacity and workload.
- 04:55 - 04:59
The third benefit is it builds trust and increases the
- 04:59 - 05:02
longevity of the sellers within the organization.
- 05:04 - 05:09
Organizations would clearly established quotas for the coverage model build
- 05:09 - 05:10
seller trust.
- 05:11 - 05:17
It helps manage seller nutrition, seller clarity and buying through
- 05:17 - 05:22
acknowledgement of their performance metrics enables the organizations to get
- 05:22 - 05:23
seller commitment to.
- 05:23 - 05:29
That argues as sellers see themselves provide value.
- 05:30 - 05:31
Their commitment to.
- 05:31 - 05:36
The organization also increases the longevity in the cellar relationship
- 05:37 - 05:41
with the organization also enables better seller and customer and
- 05:42 - 05:43
customer and organization interactions.
- 05:48 - 05:53
The transparency and enhance collaboration between salary and organization, lowers
- 05:54 - 05:59
the attribution probability and minimizes salary attrition and onboarding costs
- 06:02 - 06:03
over a period of time.
- 06:04 - 06:08
Organizations mature in what insights they create and provide their
- 06:09 - 06:14
cellars, the data analytics and visualization of the performance real
- 06:14 - 06:18
time can need to inform and faster decisions, both for
- 06:18 - 06:19
sellers and organizations.
- 06:21 - 06:26
All of these increase seller market potential and probability of
- 06:26 - 06:34
quota achievement to summarize having a robust coverage model established,
- 06:34 - 06:41
monitored and realigned as needed, maximizes the seller value to
- 06:41 - 06:44
the organization and the value of the organization to the
- 06:44 - 06:48
seller, helping both realize maximum market potential.
- 06:52 - 06:56
Let's look at the key takeaways from this chapter firstly,
- 06:57 - 06:59
quotas should be aligned with the plan.
- 07:00 - 07:05
Company revenue, target products and services quota should be said
- 07:06 - 07:11
using historical data, past performance and level against established benchmarks.
- 07:12 - 07:19
They should also incorporate market trend and seasonality voters should
- 07:19 - 07:21
incentivize right seller behaviors.
- 07:22 - 07:27
Organizations can build compensation plan metrics to align with the
- 07:27 - 07:28
expected seller.
- 07:28 - 07:34
Performance quota should be assigned to all routes to the
- 07:35 - 07:39
market. In a coverage model, having a well balanced coverage
- 07:40 - 07:44
model enables identification of any gaps in the coverage or
- 07:45 - 07:47
the best route for customer interaction.
- 07:50 - 07:54
The definition of an effective quota is where 80 of
- 07:54 - 07:57
the team, on average should be able to achieve and
- 07:57 - 08:03
meet their quota quota should be clearly communicated by the
- 08:03 - 08:08
management, fully understood by the sellers and measurable by the
- 08:08 - 08:08
company.