Salesforce Quota Management best practices

How to manage your sales team focus on just on objective: The Quota. And how to  track their progress through Collaboratives Forecast

Nothing better than focus the people on objectives and measure results.
That is not always easy to define for some parts of your organization, like People management while increasing the employee loyalty. For this kind of objective nothing better than practices like OKRs. But for Sales reps it usually is straightforward to measure results on a Quota basis and track progress using Opportunity forecast.
Salesforce is well known for its simplicity on the vast tooling out of the box to solve common business processes such as case management, opportunity and quoting management in a both simple and flexible way.

In this case for Sales Reps Objectives, the salesforce solution is Collaborative Forecasting.

These are the main points while using Salesforce Collaborative Forecast and Quotas.

A forecasts page with product family forecasts for a forecast manager and team members

Setting up Collaborative Forecast

Really easy, just enable it, and configure 3 settings

  • Roll up and hierarchy
  • Forecast period display
  • Ensure the Opportunity Stage mapping for Forecast Categories
Warning
If you are changing the basics settings consider that some data like preview quota can be deleted and recalculated.

 Forecast options

Your have 4 categories of forecasting:

  • Pipeline
  • Best Case
  • Commit
  • Closed

Forecast Types

Forecast Type Hierarchy Date Type What the Rollup Is Based On
Opportunities – Revenue Role Close date The opportunity’s Amount and Close Date fields
Role Product date The opportunity products’ Total Price and Date fields
Role Schedule date The product schedule’s Revenue and Date fields
Territory Close date For each opportunity that’s assigned to a territory, the opportunity’s Amount and Close Date fields
Territory Schedule date For each opportunity that’s assigned to a territory, the product schedule’s Revenue and Date fields
Opportunities – Quantity Role Close date The opportunity’s Quantity and Close Date fields
Role Product date The opportunity products’ Quantity and Date fields
Role Schedule date The product schedule’s Quantity and Date fields
Territory Close date For each opportunity that’s assigned to a territory, the opportunity’s Quantity and Close Date fields
Territory Schedule date For each opportunity that’s assigned to a territory, the product schedule’s Quantity and Date fields
Product Families – Revenue Role Close date The Close Date field and the sum of the Total Price fields for all opportunity line items in a product family. Forecast amounts are separated by product family.
Role Product date The Date fields and the sum of the Total Price fields for all opportunity line items in a product family. Forecast amounts are separated by product family.
Role Schedule date The product schedule’s Date fields and the sum of its Revenue fields for all opportunity line items in a product family. Forecast amounts are separated by product family.
Territory Close date For each opportunity that’s assigned to a territory, the Close Date field and the sum of the Total Price fields for all opportunity line items in a product family. Forecast amounts are separated by product family and then territory.
Territory Schedule date For each opportunity that’s assigned to a territory, the product schedule’s Date fields and the sum of its Revenue fields for all opportunity line items in a product family. Forecast amounts are separated by product family and then territory.
Product Families – Quantity Role Close date The Close Date field and the sum of the Quantity fields for all opportunity line items in a product family. Forecast quantities are separated by product family.
Role Product date The Date fields and the sum of the Quantity fields for all opportunity line items in a product family. Forecast quantities are separated by product family.
Role Schedule date The product schedule’s Date fields and the sum of its Quantity fields for all opportunity line items in a product family. Forecast quantities are separated by product family.
Territory Close date For each opportunity that’s assigned to a territory, the Close Date field and the sum of the Quantity fields for all opportunity line items in a product family. Forecast quantities are separated by product family and then territory.
Territory Schedule date For each opportunity that’s assigned to a territory, the product schedule’s Date fields and the sum of the Quantity fields for all opportunity line items in a product family. Forecast quantities are separated by product family and then territory.
Opportunity Splits – Revenue Role Close date The opportunity Amount field and each sales team member’s split percentage. For Opportunity Splits – Revenue forecasts, the split percentages for each opportunity must total 100%. To use opportunity splits forecasts, enable Opportunity Teams, Opportunity Splits, and the Revenue split type.
Overlay Splits – Revenue Role Close date The opportunity Amount field and each overlay sales team member’s split percentage. For Overlay Splits – Revenue forecasts, the split percentages don’t have to total 100%. To use overlay splits forecasts, enable Opportunity Teams, Opportunity Splits, and the Overlay split type.
Custom Opportunity Currency Field – Revenue Role Close date The amount in the custom opportunity currency field that you specify. To use custom opportunity currency field forecasts, Opportunity Teams and Opportunity Splits must be enabled. Enable a custom split type for the field, even if you don’t intend to split credit for the field amount.
Expected Revenue – Revenue Role Close date The amount in the opportunity Expected Revenue field. To forecast on the Expected Revenue field, enable Opportunity Teams and Opportunity Splits. Enable a custom split type for the field, even if you don’t intend to split credit for the field amount.

Managers and hierarchy share objectives

Also it is easy to define the hierarchy of the sales team and roll up the forecast results to their manager.
The manager is able to redefine the quote of each direct report or in his hierarchy.
Nigel’s forecasts page with easy access to a team member’s forecasts

Hint: don’t forget to create and assign a permission set for managers that want to overwrite the forecast.

Quota management

To add a quota by user managed in the Setup page, just look for quota, select the period, the user and write the amount.

Quota data for Alek for four quarters.

Tracking progress and Reports from Forecast.

Since Quota progress and forecast are calculated in real time each time you modify an opportunity stage and most importantly, the result is stored in a forecast record, then extracting information results pretty simple by standard reports.
You only need to create the Report Type and create Reports and Dashboards to perform analytics over your collaborative forecast

Forecast Amounts Report with Preview Data.

Non straightforward Sales Goals

For other non straightforward Sales objectives or even for alignment on dependencies between departament’ objectives like Marketing, pipeline generation and Sales deals closing and ACV retention from customer success departaments, you need to consider other tools such as OKRs.

OKRs allow you to align departments and individuals behind the company goal, measure results, track progress and learn iterating.
Check our section about Axy OKR to understand how to get the most from Salesforce for your team and implement the best Management by Objectives.

Axy OKR Software - 2020 Reviews, Pricing & Demo

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Finally, remember that our app is free for 30 days. Give it a try on appexchange
Cheers
Axy Team