Territory & Quota Design Flashcards
7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Territory & Quota Design flashcards as text
What is the recommended minimum percentage of the sales force that should attain quota in a well-designed compensation plan?
Answer: 60-70%
Industry best practice targets 60-70% of reps achieving quota, indicating that targets are challenging but attainable for most of the salesforce.
Which territory design principle states that territories should be structured so that a single rep can realistically cover all accounts within their territory?
Answer: Workload manageability
Workload manageability ensures that the number and size of accounts in a territory allow one rep to actively manage all relationships without being overwhelmed.
A company notices that 20% of its reps are consistently attaining over 150% of quota. This MOST LIKELY indicates:
Answer: Quotas are set too low for high-performing territories
Widespread over-attainment at very high levels typically signals that quotas are too easy, often due to territory potential being underestimated when quotas were set.
What is the purpose of a 'shadow accounting' period when launching a new territory or quota plan?
Answer: To run the new plan in parallel with the old plan before fully transitioning reps
Shadow accounting runs the new compensation or quota plan alongside the existing one so reps and managers can see projected payouts before the full transition takes effect.
Which factor is considered MOST critical when evaluating whether a territory realignment is necessary?
Answer: Significant shifts in market potential, customer base, or rep headcount
Territory realignment is triggered by major changes in market dynamics, account distribution, or sales headcount that cause existing territories to become imbalanced.
In a 'matrix territory' structure, accounts may be jointly owned by multiple reps. This structure is designed to:
Answer: Support complex enterprise accounts that require multiple selling roles
Matrix territories allow multiple reps (e.g., an account manager and a product specialist) to jointly cover complex enterprise accounts that require diverse expertise.
When using a 'regression analysis' to set quotas, what is the independent variable most commonly used?
Answer: Market potential or opportunity score for the territory
Regression-based quota setting typically uses market potential or opportunity score as the independent variable to predict the expected sales output for each territory.