Key Success Factors Of Sales Quotas Setting Process: An Empirical Study Through Laddering Technique

Sales quotas are a widespread tool adopted by many organizations to set goals, motivate, evaluate and reward sales people. Although quotas constitute such an important process for companies, research examining the topic and the effectiveness of quota setting is still very limited. In order to further explore this issue, the author employed an in-depth interview technique called laddering, whose peculiarity is to facilitate the identification of key attributes and the subsequent linkages of those attributes to consequences and individual end-values or ultimate goals held by respondents.42 ladders have been collected through interviews with professionals in the sales field. Then, data have been aggregated across subjects and used to build a hierarchical value map (HVM), reflecting the aggregate associations referred as chains. The HVM outlines attributes of an effective sales quota setting process and critically important attributes the process is supposed to possess in order to be effective and motivating. The majority of respondents expect quotas to be statistically based and formally set. Each of the characteristics addressed by sales professionals is explored and its implications are discussed.