CSCP Territory & Quota Design 2

Question 1

What does a 'quota attainment distribution' analysis reveal to a compensation designer?

Accepted Answer

Whether quotas are set at appropriate difficulty levels across the team

Answer

Analyzing attainment distribution shows whether quotas are calibrated correctly—if too many reps are at 100%+ or below 50%, quotas may be too easy or too hard.

Question 2

The 'hockey stick' problem in quota attainment refers to:

Accepted Answer

A pattern where most sales close at the very end of the quota period

Answer

The hockey stick effect describes a pattern where sales activity and closings are heavily concentrated in the final days of a quota period, often distorting forecasting and cash flow.

Question 3

When assigning named accounts to territories, which criterion is MOST important for ensuring plan fairness?

Accepted Answer

Consistency of account potential value across territories

Answer

Ensuring each territory contains accounts with comparable total potential value is the primary fairness criterion when making named account assignments.

Question 4

Which quota-setting approach is MOST appropriate for a newly launched product with no historical sales data?

Accepted Answer

Market potential and activity-based estimates

Answer

Without historical data, market potential estimates combined with activity metrics (calls, demos) provide the most rational basis for new product quotas.

Question 5

A 'geographic territory' differs from a 'vertical territory' primarily in that:

Accepted Answer

Geographic territories are defined by physical location while vertical territories are defined by industry or account type

Answer

Geographic territories are carved by region or location, whereas vertical territories segment accounts by industry, company size, or customer type regardless of location.

CSCP - Certified Sales Compensation Professional Practice Test

CSCP - Certified Sales Compensation Professional Practice Test

CSCP Territory & Quota Design 2