5Sales Quotas and Siebel Territory Management
Sales Quotas and Siebel Territory Management
This chapter describes how to create sales quotas and use Siebel Territory Management to assign the quotas to sales representatives. It includes the following topics:
About Sales Quotas and Siebel Territory Management
A quota is the target amount or number of sales the sales representative is expected to achieve. Quotas are often based on the expected performance within the sales representative’s territory.
You can use Siebel Territory Management to align sales quotas, in addition to using it to align territories. You can assign sales quotas based on accounts, contacts, postal codes, or geo zones.
The amount of the quota is defined at the customer level. For example, you are defining sales quotas by account. You have 500 hospitals that are your accounts. You have a specific drug that you sell to hospitals that you want to define a sales quota for. To do this:
You define the sale quota for sales of that drug to each hospital for each period. The period could be month or quarter.
The total national sales quota for that drug is the sum of the sales quotas you defined for all the individual hospitals. You get this amount by rolling up the sales quotas that you defined for all the individual hospitals for all the periods. The total sales quota could be for a year, so Siebel Territory Management would roll up the quotas for all the hospitals for all the quarters or months in that year.
The sales quota for each territory is a function of which hospitals are in each territory. You get these amounts by doing a territory alignment for the territory hierarchy that you associated with the sales quota. The sales representative for each territory is assigned the sales quota for that territory.
This example shows what happens when you define quotas for accounts, and Siebel Territory Management works in a similar way when you define quotas for contacts, postal codes, or geo zones.
Process of Creating and Aligning Sales Quotas
To create and align sales quotas, perform the following tasks:
This process is a step in Roadmap for Using Siebel Territory Management.
Setting Up Territories and Territory Hierarchies for Sales Quota Alignment
Before you set up sales quotas, you must set up territories and territory hierarchies.
If you have already done this to align sales representatives to territories, you can continue with the rest of the process of creating and aligning sales quotas.
If you have not yet done this, you must begin by performing the tasks described in Process of Setting Up Siebel Territory Management before you can go on to create and align sales quotas.
This task is a step in Process of Creating and Aligning Sales Quotas.
Creating the Sales Quota Record
The first step in defining the sales quota is to create the sales quota record. This quota includes:
A product or product line that this is the quota for. For example, this might be a quota for the sale of the X23 laptop computer or for the entire product line of computers.
A unit of measure for the quota, such as revenue from sales or number of units sold.
The value of the quota, which is the amount that should be sold. For example, if the unit of measure is Units and the quota value is 1000, then the sales quota is 1000 units sold. The value is not entered in the Sales Quota record but is rolled up from amounts entered in period records.
This task is a step in Process of Creating and Aligning Sales Quotas.
To create the Sales Quota record
Navigate to the Administration - Sales Quota screen, Quotas Administration view.
In the Quotas Administration list, add a new record and complete the necessary fields. Some fields are described in the following table.
Field Comment Name
Enter a name for this sales quota.
Period Type
Select the type of period that this quota applies to, such as year or month.
Quota Period
Select the actual period that this quota applies to. The options available depend on the period type that you selected. For example, if you selected month as period type, you could select January 2007 or February 2007 as the quota period.
Quota Value
Displays the rolled up value for the quota, after you have done the roll up.
Territory Hierarchy
Select the Territory Hierarchy that this quota will be applied to. Sales representatives for the territories in this hierarchy will be assigned
Split Method
Select the split method:
If you want to enter quotas for accounts and split them among contacts for that account, select Account Quota Split. For more information, see Defining Sales Quotas for Accounts.
If you want to enter quotas for contacts and split them among accounts for that contact, select Contact Quota Split. For more information, see Defining Sales Quotas for Contacts.
Product
Select the product that this quota applies to. (Enter a value either for Product or for Product line, but not for both.)
Unit of Measure
Select the unit of measure for the quota. Options are:
Calls. The quota specifies how many customer calls the sales representatives should make.
Revenues. The quota specifies the money value of the sales.
Units. The quota specifies the number of units sold.
Product Line
Select the product line that this quota applies to. (Enter a value either for Product or for Product line, but not for both.)
Defining Sales Quotas
To define the sales quota, you:
Define the customers that this sales quota applies to by entering a list of accounts, contacts, postal codes, or geo zones.
For each account, contact, postal code or geo zone that you entered, define the sales quota for each period.
Roll up the quotas, so the total of the quotas you defined for all the periods are entered in the Sales Quota record.
Note: When you click the Rollup Quota button in any of the following procedures, the Siebel Business application adds up the amount from all rules across rule types (Account, Contact, Postal Code, and GeoZone rules) and it displays in the Quota Value field in the header form.
This task is a step in Process of Creating and Aligning Sales Quotas.
Defining Sales Quotas for Postal Codes or Geo Zones
To define sales quotas by postal code or geo zone, enter the appropriate values in the Postal Codes or Geo Zones view.
To define sales quotas by postal code or geo zone
In the Quotas Administration list, drill down on the name of the sales quota that you want to align.
Click the Postal Code or Geo Zone view tab.
In the Postal Code or Geo Zone list, add new records and complete the necessary fields. Some fields are described in the following table.
Field Comments Postal Code or Geo Zone
Select a postal code or geo zone that this is the sales quota for.
Amount
Do not enter a value here. This field displays the totals of the amounts you will enter in the Quota field of the periods list in Step 4.
For each postal code or Geo Zone, add new record to the Postal Code Quota Periods list or to the Geo Zones Quota Periods list for all the periods that you are defining a quota for, and complete the necessary fields. Some fields are described in the following table.
Field Comments Period
Select a period. The periods that are available to select depend on the Quota Period that you selected in the Sales Quota record.
Quota
Enter the sales quota for this postal code or geo zone for this period.
After you have entered quotas for all periods for all postal codes or Geo Zones, in the Quotas form, click Rollup Quota.
The amounts for all the period quotas for each postal code or Geo Zone are rolled up into the Amount field of the Postal Code or Geo Zone records. The total amount for all the postal codes or Geo Zones is rolled up into the Amount field of the Sales Quota record.
Defining Sales Quotas for Accounts
Defining sales quotas for accounts is similar to defining sales quotas for postal codes or geo zones, with one difference. You can split the sales quota for the account among contacts at that account to create sales quotas for the contacts.
To define sales quotas by account
In the Quotas Administration list, drill down on the name of the sales quota that you want to align.
Click the Accounts view tab.
In the Accounts list, add new records and complete the necessary fields. Some fields are described in the following table.
Field Comments Account
Select an account that you want to define a sales quota for.
Amount
Do not enter a value here. This field displays the totals of the amounts you will enter in the Quota field of the periods list in Step 4.
For each account, add new records to the Account Quota Periods list all the periods that you are defining a quota for, and complete the necessary fields. Some fields are described in the following table.
Field Comments Period
Select a period. The periods that are available to select depend on the Quota Period that you selected in the Sales Quota record.
Quota
Enter the sales quota for this account for this period.
Optionally, if you want to split the quota among contacts at the account, for each period record, add new records to the Affiliated Contacts list and complete the necessary fields. Some fields are described in the following table.
Field Comments Last Name
Select a contact associated with this account.
Quota Split %
Enter the percent of the account quota that will be assigned to this contact.
Quota Split Amount
Displays the amount of the account quota given to this contact, calculated by multiplying the Quota Split % times the Quota amount in the Account Quota Periods record.
Contact Split %
Displays the percent of the affiliated contact’s quota that will be assigned to this account.
Contact Split Amount
Displays the amount of the affiliated contact’s quota assigned to this account.
After you have entered quotas for all periods for all accounts, in the Quotas form, click Rollup Quota.
The amounts for all the period quotas for each account or Geo Zone are rolled up into the Amount field of the Account or Geo Zone records. The amounts for all accounts are rolled up into the Quota Value field of the Sales Quota record.
Defining Sales Quotas for Contacts
Defining sales quotas for contacts is similar to defining sales quotas for accounts. If the same contact is at several accounts, you can split the sales quota among those accounts to create sales quotas for the contacts at each account. For example, if one doctor is on the staff of several hospitals, you can define sales quotas for that doctor and split it among the hospitals to get a separate quota for the amount that should be sold to that doctor at each of those hospitals.
To define sales quotas by contact
In the Quotas Administration list, drill down on the name of the sales quota that you want to align.
Click the Contacts view tab.
In the Contacts list, add new records and complete the necessary fields. Some fields are described in the following table.
Field Comments Contact
Select a contact whom you want to define a sales quota for.
Amount
Do not enter a value here. This field displays the totals of the amounts you will enter in the Quota field of the periods list in Step 4.
For each contact, add new records to the Contact Quota Periods list for all the periods that you are defining a quota for, and complete the necessary fields. Some fields are described in the following table.
Field Comments Period
Select a period. The periods that are available to select depend on the Quota Period that you selected in the Sales Quota record.
Quota
Enter the sales quota for this account for this period.
Optionally, if you want to split the quota among different accounts for this contact, for each period record, add new records to the Affiliated Accounts list and complete the necessary fields. Some fields are described in the following table.
Field Comments Name
Select an account associated with this contact.
Quota Split %
Enter the percent of the contact quota that will be the quota for the contact at this account.
Quota Split Amount
Displays the amount of the quota for this contact at this account, calculated by multiplying the Quota Split % times the Quota amount in the Contact Quota Periods record.
Account Split %
Displays the percent of the affiliated account’s quota that will be assigned to this contact.
Account Split Amount
Displays the amount of the affiliated account’s quota assigned to this contact.
After you have entered quotas for all periods for all contacts, in the Quotas form, click Rollup Quota.
The Quota amounts for all the period quotas for each contact are rolled up into the Amount field of the Contacts records. The amounts for all contacts are rolled up into the Quota Value field of the Sales Quota record.
Checking and Publishing the Sales Quotas
After you have defined the sales quotas and rolled up the amounts, check the total sales quota to make sure it is what you want. If it is not, make necessary adjustments.
Once the total sales quota is correct, you publish it to assign the sales quota to the territories in the Territory Hierarchy that you associated with the Sales Quota record.
When you click Publish, to assign the sales quota to the territories, Siebel Territory Management must
Check Dates. Siebel Territory Management compares the sales quota periods with the start date and end date of the territory rules. If an entire sales quota period is within the start date and end date of a rule, Siebel Territory Management assigns the entire quota to the territory specified by the rule. If only part of a sales quota period is within the start date and end date of a rule, Siebel Territory Management assigns a pro rated share of that quota to the territory specified by the rule.
Check Accounts. One account might be in multiple territories. If so, Siebel Territory Management assigns the quota for the account to those territories. The percentage of the total quota assigned to each account depends on the value in the Allocation Percentage field in the Territories Administration Quotas, Accounts, Contacts, Postal Code, or Geo Zone view.
This task is a step in Process of Creating and Aligning Sales Quotas.
To check and publish the sales quota
After rolling up the quota, check the value in the Quota Value field of the Quotas form.
If this is not the total sales quota that you want, repeat the steps in Defining Sales Quotas, changing the period quotas to change the total quota value.
When the total Quota Value is correct, click Publish.
Calculating the Sales Quotas for Management
After publishing the sales quotas for sales representatives, calculate the sales quotas for the district managers and regional managers of those sales representatives. The calculated quotas for managers is a roll-up of the quotas of their reports.
When you click the Calculate button for a territory, Siebel Territory Management calculates the quota amounts for that territory by adding the quota values for all quota rules.
This task is a step in Process of Creating and Aligning Sales Quotas.
To calculate sales quotas for management
Navigate to the Siebel Territory Management screen, then the Territories Administration view.
Select the record for the appropriate territory.
In the Territory form, Click Calculate.
To understand the result, view the values in the fields shown in the following table.
Applet Field Comment Period Quotas
Base Amount
The value from Publish Quota in Quota Administration.
Net Amount
The value after applying the credit allocation percentage described earlier.
Territory Quota Rules
Base Quota
The sum of the base amounts from the Period Quotas list.
Calculated Quota
The sum of the net amounts from the Period Quotas list.
Adjusted Quota
If you want to use an adjusted quota that overrides calculated quota, enter the adjusted quota here.
Note: To use this field, you must configure Siebel Territory Management using Siebel Web Tools, as described earlier in this topic.Overall Calculated Quota
The sum of the calculated quotas of all subordinate territories.
Total Quota
The sum of the values in the Calculated Quota and Overall Calculated Quota fields.
Territory Quota
Rollup Amount
The sum of the calculated quotas from the Territory Quota Rules list.
Overall Calculated Quota
The sum of the rollup amounts from all subordinate territories, including Account, Contact, Postal Code, and GeoZone rules.
Total Quota
The sum of the values in the Rollup Amount and Overall Calculated Quota fields.
Territory Applet
Total Quota
The sum of all quotas from the Territory Quota list that are valid on the current date.
The quota values for each quota rule are the sum of all the net amount values from the territory quota periods, considering the validity of each rule, as follows:
The net amount on the Period Quota applet is the sum of the Credit Allocation records valid between the period start date and period end date, calculated as follows:
Net Amount for that Period = (Base Amount * ((CrdtAllocEndDt1 - CrdtAllocStartDt1)/(PeriodEndDt - PeriodStartDt)) * CreditAllocation%) + (Base Amount * ((CrdtAllocEndDt2 - CrdtAllocStartDt2)/(PeriodEndDt - PeriodStartDt)) * CreditAllocation%) + . . .
If there is no credit allocation defined, then the calculation assumes a credit allocation of 100%.
If a rule is not valid for the entire period mentioned in the territory period quota, then the quota is the net amount achievable for the length of time that the rule is valid, assuming 100% Credit Allocation, calculated as follows:
Net Amount * ((RuleEndtDt - RuleStartDt) /(PeriodEndDt - PeriodStartDt))
After the calculation, the Territory record shows the current sales quota, which depends on whether the period associated with a sales quota is valid for the current date.
Viewing the Effect of a Territory Change on Sales Quotas
After you have set up and aligned sales quotas, as described in Process of Creating and Aligning Sales Quotas, changes that you make in territory rules can affect these sales quotas, because the sales quotas are assigned to sales representatives based on territories.
You can check the effect of a territory alignment on sales quotas before activating the new territory alignment.
This task is a step in Roadmap for Using Siebel Territory Management.
Associating the Quota with an Alignment
Before you run the alignment, you must associate the quota with the alignment.
To associate a quota with an alignment
Navigate to the Siebel Territory Management screen, then the Alignments Administration view.
Drill down on the desired alignment.
Click the Quotas view tab.
In the link bar, click Contacts, Accounts, Postal Codes, or Geo Zones, depending on which of these was used as the basis of the sales quota.
In the Quotas list, select the quotas that you want to associate with this alignment.
Viewing the Effect of the Alignment on Quotas
After you run the alignment, check the effect it has on quotas, so you can evaluate this result before you activate the alignment.
To view the effect of the alignment on quotas
Navigate to the Siebel Territory Management screen, then the Territories Administration view.
Drill down on the desired territory.
Click the Quotas view tab.
In the link bar, click Contacts, Accounts, Postal Codes, or Geo Zones, depending on which of these was used as the basis of the quota.
In the Territory Contact Quota Rules list, select a rule.
In the Credit Allocation list, and the Period Quotas list, view what the quotas are after the alignment using this rule.