Now that the quota has been distributed, the payee assigned to the top-level territory can allocate quota values for each dimension.
Top-Down quotas can be set a number of ways. The first option is an even distribution of the overall quota across each dimension. If we have historical and opportunity pipeline data, we can use either of these, or we can use a weighted combination of historical and pipeline data.
Let’s look at a few examples of when we might use each allocation method. Bikes In Motion has a long history of sales in the USA and Canada, so they have enough historical data to forecast future sales, and therefore set realistic quotas. For this scenario, using historical values would be a good choice.
On the other hand, sales in Europe have only taken place for six months, which is not enough data to predict future sales. However, the company has built up a considerable pipeline of sales prospects, along with reasonably accurate estimates of the probability for each opportunity. For this scenario, Bikes In Motion would use the Pipeline option to allocate quotas.
Since we have historical data and we are using accounts as our primary dimension, let’s see how to use historical data to allocate quotas by account.