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View & listen to the recorded webinar including Q&A here.

                                                    May 10, 2012
Logistics for today’s call….

 All attendee’s will be on “silent” mode during the
  presentation.
 Please utilize the “Questions” feature to ask questions;
  simply type in your question and press enter.
 At the conclusion of the presentation, the moderator
  will facilitate the “Question & Answer” session utilizing
  the “Questions” feature.




                                                              2
Sales Benchmark Index will….
 Send a copy of the presentation to you
 Additional questions can be sent directly to:
  Joshua.Meeks@salesbenchmarkindex.com

Join us for our next Webinar….
   “Designing Inside Sales Organizational Models”
    Thursday, June 14th
    1:00 p.m. Central
    30 minutes
    Register at:
      http://www.salesbenchmarkindex.com/webinar-designing-inside-sales-organizational-models/



                                                                                                  3
Joshua Meeks
 Brief Bio
 • Senior Consultant at Sales Benchmark Index
 • Prior to SBI,
      •   9+ years at Hewitt Associates / Aon Hewitt
          • Sales Operations
          • Sales Strategy
          • Marketing Strategy
          • Corporate Strategy
 •   10+ years of experience in Account Segmentation,
     Sales Compensation, Territory Design, Key Account
     Management and Strategy.
 •   Josh’s client experience includes General
     Dynamics, Perot Systems, iRobot, American
     Airlines, and MeadWestvaco.
Agenda
 Definition of a Good Quota
 Implications of poor quota setting
 Five components to designing accurate Quotas




                                                 5
Quality Quotas are S.M.A.R.T.




                                6
Implications of a Poor Quota
The Sales team has a large portion of income at risk and
directly tied to quotas


 Quotas are too High             Quotas are too Low

                      Implications
    Increased Sales                  Overpaying for
       Turnover                       Performance
                                   Decrease in Sales
   Poor Sales Results
                                        Effort
                                                           7
Five Components of Quota Setting

        Organization Goals                                       Historical Performance
•   Target Sales goal for the firm                               •   Capacity of a Sales Force
•   Retention Sales vs. New Sales                                •   Cost of Resources
•   Number of units sold




         Sales Talent                                                   Market Potential
•   Level of Sales Experience                                    •   Opportunity within a
•   Tenure with Organization                                         given Territory/Market




                                                   Sales Cycle
                                     •   Frequency of Sale
Organizations Goals
        Organization Goals
•   Target Sales goal for the firm
•   Retention Sales vs. New Sales
                                                         Reviewing organizational goals will
                                                           enable a top down approach to
    Sales Goal FY2013 by Customer Type                   understand what needs to be done
    Values in Millions of ($USD)
                783                      555                          each year.


                                                                                         Alpha
                                         375
                                                                                         Beta
                555
                                                                                         Gamma
                                         150
                                          30                   143
                                                               110
                185                                                  25             85
                                                           8
                 43                                                                      70 5
                                                                               10

        Sales Objective            Renewal Business     New Business /     New Customers
                                                      Existing Customers                         9
Historical Sales Performance
                                                                     Historical Performance
                                                                    •     Capacity of a Sales Force
                                                                    •     Cost of Resources


Sales FY2012 by Sales Rep                         % to Quota by Sales Rep
Values in Millions of ($USD)                      Values in Millions of ($USD)
                                           9                 135

                                                                                             117
       Total Sales                                                      110
                                                     101
                                                                                       89
                                                                                                        100%
   6
                                     5
                      5
                                                                               62
              3
                               3




Donna Chuck          Tim   Larry   Megan Albert    Donna Chuck      Tim       Larry Megan Albert
                                                                        Percent to Quota           10
Market Potential
  Acme Company 2013 TAM                                          Market Potential
   3,561 Companies | $1.31B Revenue Opp                   •   Opportunity within a
                                                              given Territory/Market



                                      10,000+ employees




                                                 5,000 – 9,999 employees




                                                                 500 – 4,999
                                                                 employees




                                                                                       11
Sales Cycle


              • Average sales cycle
                length
              • Seasonal buying
                trends
              • Budget cycles




                         Sales Cycle
          •    Frequency of Sale
                                       12
Sales Talent
         Sales Talent
•   Level of Sales Experience
•   Tenure with Organization




                                13
Summary

        Organization Goals                                       Historical Performance
•   Target Sales goal for the firm                               •   Capacity of a Sales Force
•   Retention Sales vs. New Sales                                •   Cost of Resources
•   Number of units sold




         Sales Talent                                                   Market Potential
•   Level of Sales Experience                                    •   Opportunity within a
•   Tenure with Organization                                         given Territory/Market




                                                   Sales Cycle
                                     •   Frequency of Sale
View & listen to the recorded webinar including Q&A HERE.




                                                            15
Further interest….
 Sign-up for a free quota setting consultation by:
          E-mailing joshua.meeks@salesbenchmarkindex.com


  View & listen to the recorded webinar including Q&A here.
  Additional questions can be sent directly to:
    Joshua.Meeks@salesbenchmarkindex.com


Join us for our next Webinar….
    “Designing Inside Sales Organizational Models”
     Thursday, June 14th
     1:00 p.m. Central
     30 minutes
     Register at
    http://www.salesbenchmarkindex.com/webinar-designing-inside-sales-organizational-models/



                                        Thank-You for attending…
                                                                                               16

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How To Set Accurate Sales Quotas Webinar Slides

  • 1. View & listen to the recorded webinar including Q&A here. May 10, 2012
  • 2. Logistics for today’s call….  All attendee’s will be on “silent” mode during the presentation.  Please utilize the “Questions” feature to ask questions; simply type in your question and press enter.  At the conclusion of the presentation, the moderator will facilitate the “Question & Answer” session utilizing the “Questions” feature. 2
  • 3. Sales Benchmark Index will….  Send a copy of the presentation to you  Additional questions can be sent directly to: Joshua.Meeks@salesbenchmarkindex.com Join us for our next Webinar…. “Designing Inside Sales Organizational Models”  Thursday, June 14th  1:00 p.m. Central  30 minutes  Register at:  http://www.salesbenchmarkindex.com/webinar-designing-inside-sales-organizational-models/ 3
  • 4. Joshua Meeks Brief Bio • Senior Consultant at Sales Benchmark Index • Prior to SBI, • 9+ years at Hewitt Associates / Aon Hewitt • Sales Operations • Sales Strategy • Marketing Strategy • Corporate Strategy • 10+ years of experience in Account Segmentation, Sales Compensation, Territory Design, Key Account Management and Strategy. • Josh’s client experience includes General Dynamics, Perot Systems, iRobot, American Airlines, and MeadWestvaco.
  • 5. Agenda  Definition of a Good Quota  Implications of poor quota setting  Five components to designing accurate Quotas 5
  • 6. Quality Quotas are S.M.A.R.T. 6
  • 7. Implications of a Poor Quota The Sales team has a large portion of income at risk and directly tied to quotas Quotas are too High Quotas are too Low Implications Increased Sales Overpaying for Turnover Performance Decrease in Sales Poor Sales Results Effort 7
  • 8. Five Components of Quota Setting Organization Goals Historical Performance • Target Sales goal for the firm • Capacity of a Sales Force • Retention Sales vs. New Sales • Cost of Resources • Number of units sold Sales Talent Market Potential • Level of Sales Experience • Opportunity within a • Tenure with Organization given Territory/Market Sales Cycle • Frequency of Sale
  • 9. Organizations Goals Organization Goals • Target Sales goal for the firm • Retention Sales vs. New Sales Reviewing organizational goals will enable a top down approach to Sales Goal FY2013 by Customer Type understand what needs to be done Values in Millions of ($USD) 783 555 each year. Alpha 375 Beta 555 Gamma 150 30 143 110 185 25 85 8 43 70 5 10 Sales Objective Renewal Business New Business / New Customers Existing Customers 9
  • 10. Historical Sales Performance Historical Performance • Capacity of a Sales Force • Cost of Resources Sales FY2012 by Sales Rep % to Quota by Sales Rep Values in Millions of ($USD) Values in Millions of ($USD) 9 135 117 Total Sales 110 101 89 100% 6 5 5 62 3 3 Donna Chuck Tim Larry Megan Albert Donna Chuck Tim Larry Megan Albert Percent to Quota 10
  • 11. Market Potential Acme Company 2013 TAM Market Potential 3,561 Companies | $1.31B Revenue Opp • Opportunity within a given Territory/Market 10,000+ employees 5,000 – 9,999 employees 500 – 4,999 employees 11
  • 12. Sales Cycle • Average sales cycle length • Seasonal buying trends • Budget cycles Sales Cycle • Frequency of Sale 12
  • 13. Sales Talent Sales Talent • Level of Sales Experience • Tenure with Organization 13
  • 14. Summary Organization Goals Historical Performance • Target Sales goal for the firm • Capacity of a Sales Force • Retention Sales vs. New Sales • Cost of Resources • Number of units sold Sales Talent Market Potential • Level of Sales Experience • Opportunity within a • Tenure with Organization given Territory/Market Sales Cycle • Frequency of Sale
  • 15. View & listen to the recorded webinar including Q&A HERE. 15
  • 16. Further interest…. Sign-up for a free quota setting consultation by: E-mailing joshua.meeks@salesbenchmarkindex.com  View & listen to the recorded webinar including Q&A here.  Additional questions can be sent directly to: Joshua.Meeks@salesbenchmarkindex.com Join us for our next Webinar…. “Designing Inside Sales Organizational Models”  Thursday, June 14th  1:00 p.m. Central  30 minutes  Register at http://www.salesbenchmarkindex.com/webinar-designing-inside-sales-organizational-models/ Thank-You for attending… 16