Every business launches new products on the market with a particular goal in mind: to reach a certain target that will bring them profit. However, depending on the company, it may take different amounts of time until that quota is achieved. This is why you ought to keep a close eye on your sales – to see whether or not your product is successful, and if your team needs to make any modifications to their strategy.
What is Sales Quota Attainment?
The metric for Sales Quota Attainment measures exactly how much time it should take for a particular sales target to reach its quota – to be hit. This will allow the sales team to keep a timeline in their mind, permitting them to forecast the revenue in the future. By knowing when the sales quota will be achieved, they will know when they will be able to exact profit from it.
To get the results of the sales quota, you only need two numbers: the sales and the target sales. The numbers are divided – and then the result is multiplied by 100. To provide a clear image, the formula looks exactly like this:
Sales Quota = (Sales / Target Sales) x 100.
Ideally, you may want to report to this formula once every month – or at least every time you launch a new product on the market (or re-launch an old one), to get an average idea of when your product will hit its target. Some products can take up to 15 sales to reach its target – while others can take as long as 30 or 40 sales. You just have to decide whether or not that quota is convenient for your company.
How to Hit Your Sales Target
When it comes to the basics, there’s no real right or wrong method to hit your sales quota; it’s the result that matters. If you found something that works for you, then stick with that. However, if you feel like your revenue is poor and that you need to do some changes, you might want to ask yourself the following questions:
1. What major steps did you take in the process of launching this product?
2. What were the touchpoints with your customer like? Are you compatible, or did you build enough trust in the beginning to ensure their loyalty?
3. What was exchanged in the conversations between the representative and the customers? Were their needs met, or was your message properly formulated?
4. How much time was spent on the entire process? Similarly, how much time passed between each of the steps?
The more positive your answers are in the beginning, the higher the chances are for you to reach your sales quota very fast.
Reaching your sales quota may not seem very easy – at least not in the beginning. At first, the numbers may even seem disappointing. However, as you are getting higher up the market, your quota should also improve. For this reason, you should do a report every month – to see exactly how much your situation has improved.