The Effects of Quotas on Telemarketing Sales

With quotas, telemarketers are motivated to make the most of each call.

Telemarketing sales success depends on sound inside sales strategy, solid training and effective sales management. These basics are even more paramount in today's environment where consumers receive an abundance of sales messages through phone and online means. Inside sales representatives need monthly sales goals, or quotas, to stay on track. Sales managers set quota expectations for sales dollars and number of sale units per month. Compensation, annual reviews and even continued employment link to the salesperson's ability to meet quota.

Increase in Sales

Approximately seventy-five percent of sales companies use quotas to drive sales results. When telemarketing representatives work under reasonable monthly quotas, they often improve and increase sales behaviors, such as making more quality phone calls, gaining more commitments for presentations and asking for the sale. Sales reps who achieve quota often earn sales commissions and company recognition. Incentives inspire telemarketers to attempt to sell more, resulting in an increase in sales revenues for the firm. If a majority of the sales executives meet the quota throughout the year, managers know that the quota is reasonable.

Improved Telemarketing Skills

Telemarketers strive to develop effective skills that drive them to quota success. Team members who do not have the same skill level become inspired when they view the successes of telemarketers who meet quota. They are more likely to engage in formal training and informal training, such as role play activities, and the result is improved skills. Companies that use telemarketing quotas offer coaching for those who do not meet goals. By watching successful telemarketers firsthand, lower performers hone their sales skills.

Individual Goal Setting

As in any selling environment, top telemarketers aim higher than established quotas. They create individual goals. For example, high-performing telemarketers set greater targets for number of calls, presentations and sales. To ensure that they stay on track throughout the month, these topmost employees break down monthly goals into daily goals. With quotas, motivated sales professionals continue to raise their performance bars. Managers hold annual events to honor top performers and ask the sales leaders to share success tips. During these events, other telemarketers gain ideas on individual goal setting to drive success.

Sales Force Resistance

While quotas mostly drive positive effects in telemarketing organizations, inside sales teams struggle when management sets unrealistically high quotas. Telemarketers engage in fewer sales activities because they feel that despite hard work, they won't meet quota. When managers set a quota for sales teams for the first time, they may also meet resistance. Those that have never worked under a quota feel new pressure to meet the goals. With reasonable quotas to guide them and sufficient time, telemarketers achieve more compensation for themselves and revenue for the organization.

References

• Yale; Do Bonuses Enhance Sales Productivity; Doug J. Chung, et al.; March 2011
• Inc; What's a Fair Sales Quota in 2010; Susan Greco; January 2010