What Percentage of Sales Reps Hit Quota?

This question doesn’t get asked often enough and has major implications. It impacts realistic earnings projections for salespeople, what companies should expect from their new hires’ sales performance, and ultimately, salesforce turnover rates. This topic recently came up in a conversation with Shane Jamison, a tech sales coach who works with earlier stage tech companies looking to scale. Do companies have unrealistic sales quotas? Is the average sales rep below par and thus not hitting sales quota? We invited Shane to answer these questions since he works with both sides and has a unique perspective (and hard data). Understanding various metrics, such as quota attainment and win rates, is crucial to identifying inefficiencies in sales processes and guiding decision-making for performance improvements. Take it away Shane…

Understanding Quota Attainment

Quota attainment is a crucial metric in sales that measures a sales team’s or individual sales rep’s performance against their assigned sales quota. It is expressed as a percentage of the quota achieved and is used to evaluate the effectiveness of sales teams and individual sales reps. Quota attainment is essential for sales teams to achieve their sales targets and is a key metric for measuring sales team performance.

Quota attainment can be calculated using the following formula:

Quota Attainment (%) = (Revenue from closed deals / Sales Quota) x 100

For example, if a sales rep’s quarterly quota is $100,000 in revenue and they generate $75,000, their quota attainment for that quarter would be 75%. This metric helps sales leaders and managers understand how well their teams are performing and identify areas for improvement. By regularly tracking quota attainment, sales organizations can ensure they are on track to meet their sales targets and make data-driven decisions to enhance their sales processes.

The truth? Most sales reps are not hitting sales quota.

Hitting sales quota in 2023 has been rough. How rough?

According to a recent survey by Salesforce.com (9/30/2023), only 28% of sales professionals expect to hit quota in 2023. Looking specifically at tech companies, Repvue data shows that the percentage of reps attaining quota has steadily declined. In Q3 2023, only 42.8% of sales reps hit their quotas.

Sales reps face numerous challenges in hitting their quotas, including motivating themselves and adapting to changing market conditions.

What’s behind the drop in quota attainment?

During the boom times, the focus on topline growth meant hiring more and more people to produce results. Easy money was pouring in from investors, and this massive flow of cash helped sales reps hit their sales target. In 2022, the market swung the other way. The huge inflow of funds dried up, and the focus shifted from hiring at any cost to efficiency and profitability. Despite these seemingly tougher times, many sales organizations raised or held quotas constant to drive revenue. This left sales managers looking to their sales reps to perform and sales professionals questioning the quotas given to them by their employers. Effective strategies and methodologies are essential for sales professionals to consistently hit their quotas.

Are companies setting unrealistic sales quotas?

In my conversations with hiring leaders, they tell me that many reps don’t have a fire in their bellies.

“We need ‘A’ players. These candidates want something handed to them.”

Reps are telling me that companies don’t care.

“I’m drowning in tools and processes, then get no coaching to get better.”

Both sides have lost some trust. In my experience, repairing trust happens when both sides take control of their responsibility.

Companies need to be better at hiring. They must also help their team hit quota by unlocking hidden potential through coaching. Adopting effective strategies is crucial for consistently meeting sales quotas and improving overall performance.

Reps must get uncomfortable, learn new sales skills (the ones from 10, even five years ago, don’t work anymore), and build successful habits around proven sales methodologies to improve performance. Sales quotas provide clear targets and can motivate reps to achieve higher sales volumes.

The Hiring Gap.

Let’s be honest: hiring is tough. There are a tremendous amount of jobs still out there with a historically low 3.6% unemployment rate.

Here’s what both sides can do to bridge the expectation gap and find the right balance in their hiring processes.

Companies – Become an “A Company” to Build an Elite Sales Team.

This starts by getting better at hiring.

Most sales organizations have some questions to ask and a process for hiring in place, and that’s about it. Often, it’s the same process created when unemployment was much higher, and companies held the cards. Today, a great process should be treated as people coming together to solve a problem and find out if they can help each other. It is also crucial to keep team members challenged to promote growth and prevent stagnation.

Reflect on how you could have asked better questions. What insights could you have shared that would have resonated with the candidate? Have you invested time in uncovering the critical skills required to excel at the position? Have you invested in your processes to become better, more accurate interviewers? Better hiring processes equals better-hiring results (and higher average quota attainment), especially for top performers.

Fair Sales Compensation Plans.

Next, set quotas that are realistic. Few things appeal to new recruits more than a team hitting quota, as it’s the key driver in sales compensation plans that are fair and attainable. Monitoring the attainment rate is essential to assess how well sales representatives meet their quotas and to identify areas for improvement. It’s also a crucial ingredient in team morale and reducing turnover.

A good quota attainment rate is generally accepted to be between 60% and 80%, and finding this balance is key to maintaining team motivation and driving company growth.

Sales Enablement and Support

Sales enablement and support are critical components of a sales team’s success. Sales enablement refers to the process of providing sales reps with the tools, training, and content they need to effectively sell a product or service. This can include sales training programs, sales collateral, and sales analytics tools.

Sales support, on the other hand, refers to the resources and assistance provided to sales reps to help them close deals and achieve their sales targets. This can include sales coaching, sales mentoring, and sales operations support.

Effective sales enablement and support can help sales teams improve their quota attainment by providing them with the skills, knowledge, and resources they need to succeed. This can include:

Providing sales reps with accurate and up-to-date sales data and analytics.
Offering regular sales training and coaching programs.
Developing and distributing effective sales collateral and content.
Implementing sales automation tools to streamline sales processes.
Providing sales reps with access to sales operations support and resources.

By investing in sales enablement and support, companies can empower their sales teams to perform at their best, close more deals, and consistently hit their sales quotas.

Commit to Recruiting.

Great companies follow Nick Saban’s (Head Football Coach at the University of Alabama) approach by devoting one day each week to it. What would your team and company look like if you did that?

Recruiting top talent is crucial for building a high-performance team. Investing in top performers and creating a supportive culture can significantly reduce turnover and drive success.

Treat it like a sales process, and you’re trying to close the deal.
Discovery – Demo – Close.
Do the prep work
Know what you’re looking for beyond the resume.
Get crystal clear on how this person would behave and act.
You wouldn’t treat a prospect’s discovery call like an interrogation; why would you treat a candidate like that?
Spark the fire in them — If you’re interviewing an A-player, they likely aren’t looking. Behaving like you and your company are the prize they want will turn them off.
Like an outbound lead, give them a reason to want you. Understand what an A-player wants and share insights about how you’re building a team they want to be on. Ask questions to get them thinking about being in the role. If you were here today, how would you approach selling to our customers? Our best sellers take this approach; what are your thoughts?
Be open to interviewing candidates who are actively looking.
A lot of great sellers were let go within the last year. That’s not their fault.- Many companies had unrealistic sales goals.
They didn’t have an effective onboarding process in place.
They were not a high-performance team.

Sellers, Own Your Path.

The market has shifted. Employers aren’t mindlessly throwing money at hiring anymore. Low performers have burned employers, which is why they are focused on only hiring A players. If you’re considering making a move, what should you do?

Print your numbers – Be able to show proof of your success in hitting your annual number. After the first interview, send the hiring manager your brag book to reinforce your candidacy. This will put you in a strong position.
Know what you want.
A bigger paycheck isn’t a great reason.
Be clear on where you’re going, how you’ll get there, and how you’ll both benefit from you joining the company.
Take ownership of your career decisions. If you made a poor career choice in the past, learn from it. Why didn’t it work out? Make sure your next employer is a great fit for you.
Know the type of person you like to work for.
Who was your best boss? Why?
Just as you’d get crystal clear on the buying persona you’re selling to, do the same for your future boss. Without question, working for a great boss will help with quota attainment.
Setting targets based on detailed performance assessments is crucial for ensuring that your goals are realistic and contribute to your overall growth.
Treat the hiring process like your sales process.
Prepare – Do the work. Understand the company, where you could add value, what you could bring to the organization, and how you’d benefit and grow at the company.
Discover
You’re vetting them as much as they are vetting you. Be prepared with thoughtful questions. Understand their pain and what they’re looking for in the right person.
Demo
Connect the dots for them. Please share stories and experiences highlighting how your characteristics, behaviors, and habits would solve their problem.
Ask smart questions.
Make sure you understand the compensation plan.
What percentage of quota attainment is the team?
Read Smart Questions to Ask at the End of the Interview.
Close
Align on the next steps; it’s best to get something on the calendar, just like you would for a meeting.

The hiring process allows you to “show,” not “tell” the Company who you are. You’re selling yourself. Research the company, understand its initiatives and goals, identify the problems that could prevent them from reaching their objectives, and multithread in the organization by reaching out to other employees to gain insights. All of the above are steps in a sales playbook that you can apply to your process. Understanding the sales cycle length and its implications on achieving sales quotas is also essential, as a longer sales cycle can hinder success if not properly managed.

Sales Managers – Coaching Helps Build Sales Teams.

The stats reveal that few sales teams only have A-players. On a team of six, I’ll see a couple of stars, two or three “B-Players,” and someone who’s not a fit.

The goal is to ensure that every puzzle piece fits nicely into the bigger picture so the sum of the parts is greater than the whole. Conducting a root-cause analysis is crucial to identify and understand the underlying reasons for any inefficiencies in sales performance.

When done well, each person will maximize their full potential within your playbook. It’s a winning formula that starts with coaching. High-performance teams begin with a culture of coaching.

You may believe you’re already coaching, but there’s a massive gap between what leaders and talent perceive. Consider these stats.

80% of sales leaders say they coach
Only 48% of reps say they receive coaching.

We need to align on the facts when we are that far off. First, understand what coaching is. It’s not about the company; it’s about the individual. Work with them to realize their goals and potential through your company, systems, and processes.

It’s easy for leaders to confuse a deal review or pipeline review with coaching. The problem is these are about the company rather than the talent. Just because you give a strategy or tactic to use during a review doesn’t mean you’re coaching them. Ensure you’re there to help them achieve quota and maximize their compensation by understanding various metrics such as quota attainment and win rates.

The above are some of the reasons why 40% of reps don’t believe their boss has their best interest at heart.

Talking with an experienced group of Sales Leaders the other day, I asked why sales leaders, CROs, VPs, Directors, etc. are not coaching more? We narrowed it down to three reasons.

They don’t have the skill because they didn’t receive good coaching themselves.
They don’t have the time. They spend most of their days putting out fires and managing the pressure of hitting their sales target so they can keep their job for another quarter.
Some care more about their number than their reps.

In my experience, Coaching moves the needle more than anything else!

A Study by Manchester Inc. that targeted Fortune 1000 execs coaching increased:

Productivity by 53%
Quality of Delivery by 48%
Organizational Strength by 48%
Customer Service by 39%
Exec Retention by 32%
Bottom-line Profitability increased by 22%, and
Job Satisfaction by 61%

An investment in coaching often delivers outsized results. When your sales team hits quota, they also hit the sales compensation plan’s income target. This decreases turnover and increases rep tenure. And nothing makes it harder for a sales manager to hit their quota than leading a team of rookies.

“60% of reps were more likely to leave their job if their manager was a mediocre coach. – CSO Insights”

Sales Reps – Own Your Career to Hit Quota.

Talent can no longer wait for employers to invest in their success. Luckily, many resources and people are sharing best practices to help you get better on your own. Invest in leveling up your sales skills. Sales leaders share their best strategies, tips, and tactics on social networks like Linkedin and YouTube daily; follow them.

Sales quota attainment is crucial for understanding individual and team performance, and it significantly impacts overall business success and employee motivation.

If you’re not getting coaching from your leader, invest in coaching on your own. It will help you hit quota and separate yourself in future interviews. Imagine how blown away a future boss will be when they hear that you paid for your own sales training. Monitor your progress on a regular basis to ensure you consistently meet your targets and maintain high performance levels.

Best Practices for Setting Quota Attainment Goals

Setting quota attainment goals is a critical component of sales planning and management. Here are some best practices for setting quota attainment goals:

Set realistic and achievable goals: Quota attainment goals should be challenging but achievable. Setting unrealistic goals can lead to demotivation and decreased performance.
Align goals with business objectives: Quota attainment goals should be aligned with the company’s overall business objectives and sales strategy.
Use data and analytics: Use historical sales data and analytics to set quota attainment goals that are based on realistic expectations.
Consider market and industry trends: Consider market and industry trends when setting quota attainment goals to ensure that they are realistic and achievable.
Communicate goals clearly: Communicate quota attainment goals clearly to sales reps and ensure that they understand what is expected of them.
Provide regular feedback and coaching: Provide regular feedback and coaching to sales reps to help them achieve their quota attainment goals.

By following these best practices, sales leaders can set quota attainment goals that are realistic, achievable, and aligned with the company’s overall business objectives. This approach not only helps in achieving sales targets but also boosts team morale and performance, leading to a more effective and motivated sales organization.

Results.

Results start with the person in the mirror, whether a sales leader or professional. Invest the time it takes to find a great fit and fully commit once you do.

Monitoring quota attainment is crucial as it reflects a salesperson’s or team’s effectiveness in achieving sales goals and helps identify areas for improvement.

Using a Quota Attainment Calculator can provide valuable insights into your team’s quota attainment, helping you optimize your sales strategies.