A sales territory plan is the strategy that a business uses to target the right prospects to gain new customers. The planning process begins after a sales representative has been assigned to a particular territory. Sales teams must find the most effective ways to reach potential customers and develop a workable plan for ensuring sales growth over a set time.
Building a sales territory plan can have countless advantages for businesses. Taking a buyer-centric approach to sales territory planning can help align sales teams with the best verticals, segments or regions for optimal success. Sales territory plans can also shine a light on a business’s strengths which can be used to reach more customers. An effective sales territory plan can also make sales teams more productive and increase overall sales.
Developing a sales territory plan involves a series of steps that help sales teams better understand their target audience, goals, territories and workforce. Follow these steps to create a successful sales territory plan:
1. Identify Target Audiences And Areas Of Interest
The first step in creating a sales territory plan involves identifying the target audience. Sales teams must consider who their most profitable customers are and what these customers have in common. Customers may be segmented by age, gender, income and similar attributes.
Next, look at areas of interest. These may include regions that appear promising but have yet to be served by the sales team. Reviewing the current market situation can provide a better understanding of what prospects and customers are looking for in a particular product or service.
2. Define Business End Goals
Before developing a sales territory plan, it is important to establish business end goals. This process can be achieved in several ways, but start by looking at the larger numbers. Determine what the business’s annual goal is and then break this number down into quarters and months.
When establishing business goals, look at past sales history to see where the business stood last year and how much growth is possible in the new year. Ideally, a business goal should be to increase the annual sales goal from one year to the next. These numbers can also be adjusted at a later date to account for unexpected factors that may influence growth.
3. Conduct An Assessment Of Sales Reps
The representatives that make up a sales team are the foundation of a business. Sales are all about the numbers and if certain reps are not meeting quotas or are under-performing, it may be time to reanalyze the sales territory plan. Sales managers can better measure sales performance by setting sales metrics and goals. Reps that continually meet these goals are the top earners, and reps that continually miss the mark are the bottom earners. Communicating with reps about expectations and rewarding the correct behaviors may help boost performance.
4. Divide Territories Based On Prospect And Account Quality
Sales managers need to divide territories in a way that allows for maximum profitability. There will be many customers that see value in the product or service being sold and will likely close on a deal when these products or services are being offered. However, other customers may have no interest or need for the product or service and may turn down the sales pitch again and again. When dividing territories, prioritize the customers that have shown interest and focus on quality accounts that are more likely to result in a sale.
5. Utilize Sales Territory Mapping Software
The sales territory planning process can be a long and complex endeavor, especially for businesses that do not have access to the proper tools and resources. Sales territory mapping software aims to streamline the sales territory planning process by allowing sales managers to create visual maps that contain useful business data.
Sales territory mapping software can help sales teams measure performance over time, balance workloads, optimize employee routes and ensure that team members’ territories are properly aligned. With sales territory mapping software, sales managers can delegate work more effectively and boost collaboration among team members. Sales teams can also save time; in just minutes, business data can be transformed into a useful map.
Get Started With Sales Territory Mapping Software
A well organized sales territory plan is the key to unlocking a business’s full sales potential. According to a survey on sales territory design conducted by the Sales Management Association (SMA), businesses that struggle with ineffective sales territory planning also commonly suffer from other sales planning challenges.
Sales territory mapping software can be an invaluable tool for improving data visualization and balancing workloads. Sales reps can also benefit from key information available at their fingertips. To learn more about how to create a sales territory plan or to speak with a sales territory mapping expert about mapping software, contact Geographic Enterprises today.