Attainment in Sales
Definition: The measurement expressed as a percentage showing how a sales representative performs above or below a set quota. It is done by dividing the actual sales performance by the quota during the same period. This is a very important metric in determining a salesperson’s commission in how well he or she is doing in being equal to or better than his or her sales target.
Understanding Attainment
Attainment is a ratio that gauges the performance level of a salesperson as he compares his realized sales performances against his goals. This is used in the motivational process for the sales reps, to achieve and exceed quotas. And here is a more common definition and application for attainment:
- Attainment Calculation: It is generally calculated by the formula:
Attainment = Actual Sales \ Quota * 100 %For instance, a salesperson with a quota of $100,000 but made sales of $120,000 will have an attainment of 120%. - Role in Commission Calculation: Commission payout is directly affected by attainment. Higher attainment levels might lead to higher payout commissions if the compensation plan consists of these features either in the form of accelerators or bonuses for over-attainment against the quota.
- Sales Strategy Impact: With attainment tracking, a sales manager will have an easy way of picking out their high performers and those who need extra support or training. It also helps them be able to adjust their sales strategies accordingly in order to have high performance overall throughout the team.
Example of Achievement in Use
E.g., take a sales force where each member has disparate quotas dependent on territories and product lines. A sales representative with a quarterly quota of $200,000 has sold products worth $250,000; his/her attainment would be:
Attainment Rate = $250,000 \ $200,000 * 100 % = 125%
This is an achievement of 125%, in which the representative exceeds the quota by 25%; for instance, this may translate to additional bonuses or an increase in the rate of commission under that particular sales compensation program.
Factors Influencing Attainment
- Market Conditions: Economic factors and market demand can be a significant contribution to whether a salesperson will exceed or meet their quote.
- Sales Strategy: Effective sales strategies that are aligned with the needs and preferences of the customer can have a positive impact on a salesperson’s attainment.
- Product and Service Quality: The higher the quality of the offered product or service and the better it fits the needs of the market, the easier it is to sell, enhancing attainment rates.
- Competition: The higher the competition, the more it is likely to make the attainment of high grades harder or less; the opposite holds.
Benefits of Monitoring Attainment
- Motivation: Sales representatives are motivated to make more sales and therefore earn more money, raising their attainment and hence their remuneration.
- Performance Insights: Individual and team levels of analysis of achievement through a sales force are beneficial in giving insightful performance for future training and development.
- Strategic Decision Making: The sales managers use an understanding of the trends of attainment as a guide to resource allocation, territory reassignment, and strategic realignment.