Sales Force Participation in Quota Setting and Sales Forecasting

A outside sales force is potentially one of its best sources of market and sales forecasting information, especially under unique economic conditions which make historical data unreliable. Yet many sales managers do not use inputs from their salespeople for forecasting sales or establishing performance goals. Those who do solicit such information may have to modify these inputs up or down depending on such factors as the abilities of the men or women comprising the sales force, their knowledge of company plans, and potential deliberate distortion of data because the salespeople feel that their estimates will be used later in setting their quotas or in determining their level of pay. Thus, asking a sales force for future sales estimates and using these inputs in any fashion requires a degree of caution and a concern for just how to interpret that information. This article reports the results of a study designed to investigate the extent of sales force participation in sales forecasting and quota setting in different kinds and sizes of companies. It also examines the experiences of sales managers in interpreting and using such data.