CSCP Territory & Quota Design 3

Question 1

What is the recommended minimum percentage of the sales force that should attain quota in a well-designed compensation plan?

Accepted Answer

60-70%

Answer

Industry best practice targets 60-70% of reps achieving quota, indicating that targets are challenging but attainable for most of the salesforce.

Question 2

Which territory design principle states that territories should be structured so that a single rep can realistically cover all accounts within their territory?

Accepted Answer

Workload manageability

Answer

Workload manageability ensures that the number and size of accounts in a territory allow one rep to actively manage all relationships without being overwhelmed.

Question 3

A company notices that 20% of its reps are consistently attaining over 150% of quota. This MOST LIKELY indicates:

Accepted Answer

Quotas are set too low for high-performing territories

Answer

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.

Question 4

What is the purpose of a 'shadow accounting' period when launching a new territory or quota plan?

Accepted Answer

To run the new plan in parallel with the old plan before fully transitioning reps

Answer

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.

Question 5

Which factor is considered MOST critical when evaluating whether a territory realignment is necessary?

Accepted Answer

Significant shifts in market potential, customer base, or rep headcount

Answer

Territory realignment is triggered by major changes in market dynamics, account distribution, or sales headcount that cause existing territories to become imbalanced.

CSCP - Certified Sales Compensation Professional Practice Test

CSCP - Certified Sales Compensation Professional Practice Test

CSCP Territory & Quota Design 3