The Win Rate Podcast with Andy Paul Are Quotas The Enemy of Performance?
Today Andy has gathered another stellar roundtable - Jim Dickie, Keynote speaker and Co-Founder of Sales Mastery, Barry Trailer, a sales coaching leader, Partner in Best Practices for B2B and Co-Founder of Sales Mastery, and Eric Stine, three-time CFO working with mid and large cap software companies.
They discuss how quotas are a lagging indicator instead of a leading one, the importance of tracking growth on a year over year basis, assessing average contract lengths and forward bookings, and how with the right tools we can look beyond quotas and see the type and quality of activity that led to winning or losing a deal.
They go on to speak about the role that sales managers play, and due to lack of investment and training, how they’re often managing sales but not salespeople, and the requirement of understanding the needs and priorities of different stakeholders. They also look at the productivity-based approach for organizations and give examples of how this has been successfully implemented to set expectations and identify areas for improvement.
Connect with Jim, Barry, and Eric on LinkedIn
Host Andy Paul is the expert on modern B2B selling and author of three best-selling, award-winning sales books, including his latest Sell Without Selling Out. Visit andypaul.com to subscribe to his newsletter for even more strategies and tips to accelerate your win rate!
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Episode Highlights:
Quota limits potential, overlooks individual potential.
Quotas effective, but not for everyone.
Important metrics: logo count, NRR, forward bookings, contract length.
Measure activity, quality, engagement, and sales process.
Productivity based on time and output.
Sales reps need to understand their role. Sales managers lack training and measurement.
Salespeople's engagement with buyers is decreasing. Buyers involve salespeople earlier if they provide education, mitigate personal or organizational risk, or help with complex situations. Understanding customer value is crucial.