How to manage quotas in an unpredictable market-How-to-manage-quotas-in-an-unpredictable-market

Video Transcription

Video Summary

The transcript discusses how companies are handling sales quotas during COVID-19 and how they should prepare for 2021. The speakers from Sales Globe explain that quota decisions have moved through several phases: initial acclimation and trust-building, planful action with some compensation tweaks, building and adjusting, and now planning for recovery and a new sales model.<br /><br />They identify major drivers of change: fear, cost reduction, reduced travel and T&E expenses, layoffs, shifting demand, and changes in how sales teams work. Some industries saw demand surge, others saw demand collapse, and many companies shifted from selling to helping customers.<br /><br />The key recommendation is to start with the outcome you want for the organization—such as preserving goodwill, keeping teams engaged, or cutting costs—and then decide what quota actions make sense. For 2020, options include doing nothing, using discrete quota periods, shifting seasonality, or adjusting annual quotas, though the speakers caution against overcommitting too early.<br /><br />For 2021, they propose a quota success model based on two factors: market opportunity and sales capacity. They recommend moving beyond historical quota setting, using more predictive market data, drilling down to account-level opportunity, and analyzing how much selling time reps actually have. A small increase in selling time can significantly increase revenue capacity. The overall message: use a clear framework, communicate transparently, and make quota changes strategically rather than reactively.

Keywords

sales quotas

COVID-19

quota planning

sales compensation

revenue capacity

market opportunity

sales strategy