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Lead Generation Turbulence: Why Is Quota Attainment Trending Down?

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Two recently-released sales metrics reports share a common finding that's impacting lead generation and sales success: there is a decrease in the percentage of field and inside sales reps making quota.

In a blog posted June 16, Trish Bertuzzi, President and Chief Strategist of The Bridge Group, announced availability of the 2010 Inside Sales Metrics & Compensation Report based on surveys of over 115 technology companies conducted in the first quarter of this year. In her post, Trish shared these key findings:

• Since 2007: The average size of Inside Sales groups has nearly tripled.
• Since 2007: The average sales quota has increased nearly 33% to $853k.
• Since 2007: The percentage of reps making quota has fallen by 25%.
• In 2010: 42% of respondents reported less than 50% of their reps at quota.
• In 2010: Only 4% of respondents had greater than 80% of their reps at quota.

In a blog posted May 31, Barry Trailer, Managing Partner and Co-Founder of CSO Insights, announced availability of the 2010 Telemarketing/Inside Sales Performance Optimization Report based on surveys with 250 companies. Barry noted this key finding:

• Quota attainment is down: 53% of Telemarketing/Inside Sales reps met or exceeded their quota last year; this is up one point from two years ago, but down four full points from one year ago.

Certainly, there are internal factors contributing to quotas not being met.

In a February 2010 article in the Denver Business Journal, Barry and fellow Managing Partner Jim Dickie talked about an earlier CSO Insights report that noted many sales organizations were cutting sales budgets. That earlier report mentioned frozen or reduced lead generation budgets and reduced training budgets for reps. Jim added the following:

"Many of these firms then tried to 'cut their way to success' by reducing budgets. The [survey] results show that strategy was a huge mistake."

And there are external factors impacting quota attainment. In an earlier blog, I referenced OneSource's 2010 B2B Sales Pulse Survey finding that 59% of respondents report sales cycles were either significantly longer or somewhat longer than last year.

What is your take on reasons for this decline in the percentage of reps making quota?

What are your thoughts on contributing internal and external factors?

What are your ideas on ways to lift quota metrics in this tough economy?