Sales Quota: The Complete Guide to Hitting & Crushing Quota in 2024

photo of a sales graph with quota crushing numbers
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In 2018, Salesforce found that only 57% of salespeople expected to hit their quota. Jump to 2022, and Salesforce found that a staggering 72% of salespeople expected their team to miss annual quota.

We’re living in an era where sales has the richest technology stack and set of professional capabilities than ever before. Yet, the sales organization is failing to crush their quota, let alone hit it.

This blog post is your comprehensive guide on how to hit and crush sales quotas in 2023 and beyond.

We’ll cover everything from basics to advanced techniques for achieving your sales goals. Whether you’re an inside sales rep, field sales rep, or sales manager—you’ll learn the valuable insights and strategies to predictably crush quota.

Let’s get started.

  1. Why is sales quota important?
  2. 5 steps to setting sales quota
  3. How to hit sales quota
  4. How to crush sales quota
  5. How to track sales quota

What is sales quota?

Sales quota is a goal set by a business for its salespeople or sales teams to achieve within a specific time frame. It can be based on various metrics, such as sales volume, revenue, or profit margins, and is used to track progress and assess performance.

photo of blocks representing sales quota

Types of sales quota

1. Monthly quota

A monthly sales quota is a target set by a business for its sales team to achieve within a one-month period. Monthly sales quotas provide a way to track progress and assess performance on a short-term basis, allowing for adjustments and improvements in strategy. They are important for businesses to ensure consistent sales revenue and growth on a monthly basis.

2. Quarterly quota

A quarterly sales quota is a target set by a business for its sales team to achieve within a three-month period. Quarterly sales quotas allow businesses to assess performance on a medium-term basis and adjust strategies as necessary to achieve the annual sales quota. They are important for businesses to ensure consistent sales revenue and growth over a three-month period.

3. Annual quota

An annual sales quota is a target set by a business for its sales team to achieve within a full year. Annual sales quotas provide a way to track progress and assess performance on a long-term basis, allowing for adjustments and improvements in strategy over time. They are important for businesses to set realistic goals and objectives, measure performance, and ensure consistent sales revenue and growth over a year.

photo representing annual sales quota

Difference between sales quota, sales targets & sales goals

Sales quota is often confused with sales targets or sales goals, but they are different.

Sales targets are specific objectives set for salespeople or teams to achieve, and can be used to track progress towards a sales quota. Sales goals are broader, long-term objectives that may include other factors besides sales, such as customer satisfaction or brand recognition.

Importance of sales quota to your business

Sales quotas play a vital role in the success of any business. Setting sales quotas can help to create a culture of accountability and achievement. In this section, we will discuss the importance of sales quotas to your business.

1. Encourages salespeople to perform better

Sales quotas provide salespeople with a specific target to hit, motivating them to perform better. This target can be set based on sales volume, revenue, or profit margins, among other metrics.

By setting achievable goals, salespeople can focus their efforts on achieving the sales quota, which can ultimately lead to increased sales and revenue for the business.

2. Helps sales managers to monitor performance

Sales quotas allow sales managers to monitor the performance of their sales team. By setting individual quotas for each salesperson, managers can track progress and identify areas where improvements are needed. This can help managers to provide coaching and support to their team, ultimately leading to improved performance and increased sales.

3. Helps to set realistic sales volume expectations

Sales quotas also help businesses to set realistic sales volume expectations. By analyzing historical sales data, businesses can set sales quotas that are achievable, yet challenging. This can help to ensure that sales teams are not overburdened with unattainable targets, which can ultimately lead to burnout and low morale.

4. Improves the bottom line of your business

Sales quotas can have a direct impact on the bottom line of your business. By setting achievable targets and motivating sales teams to hit these targets, businesses can increase their sales revenue and profitability.

Additionally, sales quotas can help businesses to identify areas where additional resources or training may be needed, which can ultimately lead to improved sales performance and increased revenue.

photo of a manager looking at profit loss

Steps to setting effective sales quotas

Effective sales quota setting is crucial to the success of any business. In this section, we’ll discuss the steps involved in setting sales quotas, the different types of quotas, and the differences between sales team and individual quotas.

1. Identify the sales cycle

Understanding the sales cycle of your business is important when setting quotas. Sales cycles can vary in length and complexity depending on the product or service being sold. Take the time to analyze your sales cycle and determine the appropriate timeframe for setting quotas.

2. Determine sales volume

The next step is to determine the sales volume you want to achieve within the specified time frame. This can be based on revenue, units sold, profit margins, or any other relevant metrics.

photo of a manager setting quota based on revenue

3. Consider historical performance

Take a look at your past sales performance to determine realistic goals for your sales team. Analyze your sales data and identify any trends or patterns that can help you set achievable sales quotas.