Sales Performance & Quota Statistics

How to set realistic quotas and use intelligent compensation plans to motivate your team to reach them.


Sales Performance & Quotas

  • Sales development reps who make 12 contact attempts (instead of the average 8) perform 16% better. (Bridge Group, 2016)

  • The top 5% of performers secure 6.7 scheduled meetings per week on average. Instead of results, they focus relentlessly on the inputs they can control:

  • An average of 603.9 dials (calls placed) per week (120.8 per day)

  • An average of 57 new contacts added to the call list per week (11.4 per day)

  • At least 81.6% of active contacts* have direct lines in the contact record

  • At least 95.4% of active contacts* have pre-call in the contact record (Funnel Clarity)

  • Performance goals vs. learning goals

    • Medical supplies distributor reps with outcome-based (external) goals performed worse than those with learning-based (internal) goals. (Insidesales)

    • Those who focused on learning-oriented goals outperformed those chasing performance in 4 dimensions - they set higher goals, applied more effort and had better territory and account planning. (Insidesales)

  • SDR quotas

    • 2016 quotas were 27% higher than in 2014, with a wide range of responses depending on the average sales price. ASP or $110k+ quotas as low as 3 for an outbound SDR (total revenue approx $330k) and 50 for an ASP <$5k for an inbound SDR (total revenue approx $250k). (Bridge Group, 2016)

    • Setting attainable quotas to incorporate the 4 variables (activity focus, model, account size, market maturity) is difficult and only 68% of SDRs achieve quota. (Bridge Group, 2016)

  • SDR performance

    • The average SDR works 265 leads per month with 64% of SDRs reporting 150-400/month. 3% of SDRs handled over 500 leads. (Bridge Group, 2016)

    • This was higher (250-300) for inbound qualification teams than for outbound prospecting groups (150-200). (Bridge Group, 2016)

    • Leads worked per month for an inbound SDR dropped from 325 for products with an ASP <$5k to 150 for an ASP >$250k. (Bridge Group, 2016)

Key performance indicators

  • The ideal salesperson understands the sales process, is flexible, knows exactly what is expected of them, is smart, and loves what they’re doing. A meta-study found positive correlations (standard coefficient) between sales performance and

    • Selling-related knowledge (0.28)

    • Adaptiveness (0.27)

    • Work-engagement (0.23)

    • Cognitive aptitude (0.23)

  • Role ambiguity impacted negatively on sales performance (-0.25) (Verbeke et al, 2011)

Compensation & Bonus Structure

The fine art of investing in people and compensation structure: base salaries, commissions & bonuses.

  • Total average on-target-earnings (OTE) for an SDR were $72,100 in 2016 ($46k base salary + $26.1k bonus). This is a drop of 6.5% from 2009. (Bridge Group, 2016)

  • You shouldn’t tie more than 20% of incentive comp to opportunities won for long sales. Companies who tie compensation primarily to number of meetings perform 6% higher. Those rewarding opportunities won perform 11% worse. (Bridge Group, 2016)

  • a compensation plan that included a base salary, commissions, quarterly bonuses, annual bonuses, and overachievement bonuses inspired salespeople to raise revenue 17.9% over those who were commission-only. (Harvard Business School, 2010)

  • Quarterly bonuses are more effective than annual bonuses. “Frequent quarterly bonuses tied to high demand end-of-quarter months, serve as pacers to keep the sales force on track to achieve their annual sales quotas”. (Harvard Business School, 2010)

  • SDR compensation

    • Those with 3+ years experience earn 16% more

    • Those with <1 year earn 15% less

    • Reps setting appointments earn less than those generating qualified opportunities. (Bridge Group, 2016)

Sales compensation in Ireland, Morgan Mckinley, 2016

Base salaries. Bonus for OTE typically 10% for non-managers and 20% for managers

ROLE

SALARY €

Sales Director

85,000 - 150,000

Channel Sales Manager

35,000 - 105,000

Business Development Manager

30,000 - 65,000

Business Development Executive

25,000 - 60,000

Inside Sales Manager

30,000 - 65,000

Inside Sales Executive

25,000 - 60,000

Inside Sales Manager with a language

35,000 - 70,000

Inside Sales Executive with a language

25,000 - 60,000

Attempts per prospect for calls

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