Developing Sales Quotas In$-$Class Application Exercise $2$

You are a Sales Manager for Algonquin Solutions, a mid size Business Intelligence software firm. You are responsible for the company$$s Eastern Canada region. The company will be launching a large national campaign in $3$ months, starting on May $1$st$,2024.$ This promotion will be a key initiative to ensure the company starts the new year $($financial year is May $1$st to April $30$th $)$ on a strong note and to de$-$risk the company meeting its overall financial targets.

From a sales perspective, here is what you need to consider as you create a set of SMART quotas to guide and motivate your sales team. You have $6$ sales reps in your unit. Previous national promotions from the past $3$ years have yielded a $10\%$ jump in the year over year sales figures for the $1$st quarter. The new program is forecasted to yield a similar increase. The $10\%$ jump would raise your team$$s quarterly sales revenue objective to $$880,000$ from last year$$s base of $$800,000$ for the same quarter. The average value of a sale is $$55,000.$

Historically each sales rep needs to generate $6$ proposals to book the $$average sale$.$ You also know that on average your sales rep need to generate $20$ cold calls to get $5$ qualified prospects which will yield the $1$ proposals. Note: The national campaign will make it easier for your reps to get the attention of new prospects and help you demonstrate the value of your BI solution.

The team has a quarterly budget of $$40,000$ to achieve your revenue target.

Your job is to create a SMART set of quotas for your sales representatives. Note: ensure you write out your quotas using the sales quota format reviewed in class.

$($A$)$ Based on the above scenario, identify which type of quotas would be best, and why you chose these types. $(4$ marks$)$