What is Sales Quota?
Quota is the sum of Average sales size multiplied by average sales per month.
Sales cycles are lengthening; Average sales size is shrinking.
Quotas are meant to challenge sales reps and motivate them to sell more. A common rule of thumb is that 80% of your sales team should be able to meet their quota most of the time. Adjust quota accordingly.
If the quota is $4K, and the average sales size is $800 it takes 5 sales per month to meet quota. What is the sales cycle length? Can a rep close more than one deal a week?
How many sales reps hit Quota?
Only 60-75% of reps will hit quota.
“Salesforce estimates that 57% of reps are expected to miss their quota this year.”
“Only 28% of sales professionals expect to meet or exceed quota in the upcoming year.” SF 2023 State of Sales Report.
Look at the Quota attainment ratings HERE.
What is Sales Ramp Up Time?
Sales Ramp Up Time = Average Length of Sales Cycle + 90 Days
HubSpot reports that it takes new reps an average of 3.2 months to fully ramp.
Hiring and keeping sales professionals has never been more difficult. In fact, 52% of sales and enablement leaders say that finding strong sales talent is one of their top challenges. And turnover is estimated to reach 25% across sales organizations in the next year. – Selling Power magazine.
A strong onboarding program is a key retention strategy. Not if it’s rushed, though. Here’s how long it takes to onboard a new rep, on average:
Ready to interact with buyers: three months
Competent to perform: nine months
Top performer: 15 months
While this might seem like a considerable investment of time and resources, the alternative is far worse. The cost of turnover typically ranges between 100% and 500% of the seller’s compensation. In one example analysis of seller turnover during the onboarding program, in which four sellers left, the turnover cost was over $600,000.
60%-87% of B2B Buyers prefer self-service, according to this article. That is misleading because what it really means is that the Buyer Journey is self-serve, getting info, recommendations, online reviews. They interact with a sales rep toward the end of teh journey.
This indicates that Marketing – your website, blog, social media, reviews – are now more important than ever. For B2B service providers that neglect Marketing, it makes it harder for sales reps. They have nothing to lean on: no slicks, articles, testimonials, reviews, use cases, etc.
In most cases, the sales rep is the sales development person, the inside sales person, the outside salesperson, and account rep. This is a lot of skills to expect in one human.
Looking for help TRAINING your sales team? For on-boarding help? For a performance review program? Call RAD-INFO INC @ (813) 963-5884