If more than 50% of your sales reps miss their quota, the problem is you
- Chris Higgins
- Sep 18, 2024
- 2 min read
If more than 50% of your sales reps miss their quota, the problem is you, not them. 🚨
The percentage of reps hitting quota often gets lost in the detail, especially if the sales leader hits their overall target. 🎯
But how can a sales leader hit their target if most of their reps miss theirs?
It’s more common than you think:
🔹 The sales leader negotiates down their overall target and inflates individual quotas. In multi-level orgs, this can happen multiple times. The CRO inflates region heads' quotas, and region heads inflate their reps' quotas. Now, maybe less than 50% of reps need to hit their target for the CRO to meet theirs. 🎈
🔹 New business and existing business targets get blended. This means the New Business team can miss all their targets, but a few large expansion deals from existing clients can still hit the overall target. 🔄
🔹 Less commonly, churn and lack of expansion can be covered up by new business. 🕵️♂️
None of these situations are good for the company. 🚫
A successful GTM machine produces revenue that is:
Predictable 📅
Repeatable 🔄
Scalable 📈
If most of your reps miss their targets, you're likely missing these three outcomes.
Plus, you're ignoring the human impact!
It’s demotivating for reps to see their leader celebrate success while they miss out on bonuses. This leads to high turnover or disengagement from reps who feel their targets are impossible and unfair. 😤💸
Fixes:
🔹 Separate targets for New Business and Expansion that remain distinct. Overachievement in one shouldn’t cancel out the other. 🚧
🔹 Sales leaders' bonuses/incentives should be based on quota attainment of the reps who are doing the work. 💪
🔹 Sales leaders must be able to explain how each rep’s quota is attainable. What actions must the rep take to hit their target this quarter? 🧩
🔹 % of reps meeting quota should be a tracked metric that managers are accountable for. 📊
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