Posted in Marketing and Strategy Terms, Total Reads: 1000
Definition: Activity Quota
Activity quota refers to a minimum amount of sales oriented actions that needs to be met by a sales person in a given period of time. In an activity quota, salesperson might be required to make certain number of emails to potential clients, make number of outbound calls or make a submission of certain number of work statements. Activity Quota relates to all activities that relate to a sale being made and might not be based on revenue directly.
The main purpose of sales or activity quota is to ensure that efforts are being made by sales person to attract new clients. It is kind of a proof for the work actually being performed and to understand the amount of production as an outcome. It also enables the employees to identify the employees who surpass the activity quota and give them incentives to appreciate their work and motivate them to keep working on in the future as well.
Activity Quota also helps to find out the strength and weakness of the employee by looking at the amount of quota completed by the employee.
For Example – A salesperson has to make 100 cold calls to prospective clients and meet 5 prospective clients in a week. The salesperson completes his telephonic calls easily and is able to the sell the product as well to a considerable fraction of people called shows that the employee is really good at it. On the other hand, the employee regularly misses the target of 5 meetings every week and hasn’t been able to sell any product via meeting. This gives the organization an indication that the employee needs training to improve inter-personal and communication skills required for a physical meeting. If the employee completed the activity quota fairly easily, the organization can increase the quota to make the most of every employee.