Optimizing sales territories creates balance and helps companies gain a competitive edge. Proper territory management also enables companies to operate their businesses more efficiently by dividing territories and regions geographically, contributing to a greater sense of team cohesion, increased sales and higher morale.
When businesses fail to optimize their sales territories, it can directly impact sales performance. Some companies will experience a drop in revenue, failed quotas, decreased motivation, unsatisfied prospects and customers, and a higher likelihood of sales burnout. Optimizing sales territories is the foundation of any solid sales plan.
Tips For Successful Sales Territory Optimization
Successful sales territory optimization relies on a number of optimization techniques. Sales teams often turn to automation methods, analytics and collaboration between team members to develop a well-optimized sales territory map that is fair and balanced. Increased insight and intelligence into account locations and densities allow businesses to build strong sales territories that focus on controlling variables like costs and travel time.
Follow some of these top tips for successful sales territory optimization to increase the performance and overall success of the sales force.
Organizing Sales Territories Geographically
One of the most common ways to organize sales territories is geographical. This generally means that each sales member is assigned to their own specific geographic boundary or territory. Businesses may choose to divide their clients in different ways, such as by U.S. regions, states, cities or zip codes. Optimizing, balancing and aligning these sales territories by geographic areas provides all sales members with equal opportunity to close sales. Organizing sales territories geographically can also reduce travel time and save on travel costs. It can even reduce conflicts between sales members as each person is able to take ownership of their own leads and accounts.
Prioritizing Territories Based On Value
Once a target market is determined, sales leaders evaluate the value of each account. This measurement can be qualitative or quantitative based on the service or product being offered by the business. For example, some businesses may choose to rank the value of their accounts by their net profitability, while others may choose to organize accounts based on the likelihood of it resulting in a referral for the business. After identifying the value of each account, businesses can prioritize the accounts in their sales territory plan. It is important to remember that the process of measuring the value of an account is fairly subjective and based on the business’s priorities.
Reviewing Demographics Of Areas
Analyzing the demographics of a target market can be a highly effective strategy when creating and optimizing territories. Targeting market demographics can eliminate the amount of time spent in the field pitching to random consumers that have a low possibility of closing. Demographics can be highly complex or simple, depending on what is being sold. Some most common things that marketing companies look for in demographics include geographic territories, income, age, nationality and education. It can be a waste of time and money to pitch products or services to the wrong audience; reviewing the demographics of set areas pinpoints the customers that are most likely to close a sale.
Identifying Sales Data Patterns
An in-depth analysis of a business’s sales can provide a lot of insight about how well a sales team is performing. Over time, it is common to recognize certain sales data patterns that may indicate which areas of the business are receiving the most attention and which require more focus. Sales managers may discover that some sales territories are being underserved which means that the business is losing viable opportunities to close sales. By identifying these sales data patterns through the optimization of sales territories, businesses can open up new opportunities in the market.
Acquiring Sales Territory Mapping Software
A sales territory map provides a clearer picture of a business’s targets and resources allowing them to be better prioritized. Through the use of optimized sales territory maps, businesses are able to create strategic plans that align with their goals. Sales territory mapping software makes it easy to import relevant sales data and create visual and interactive sales maps in a matter of minutes.
Nearly any business involved in sales can benefit from sales territory mapping software, including businesses that want better visibility over their sales performance, struggle to balance workloads among field sales reps or those teams that have sales members accidentally approaching the same prospects.
Learn More From An Experienced Sales Territory Mapping Company
Sales territory mapping software has the power to help businesses increase leads, conversions and ultimately revenue. Businesses that take a proactive approach to sales territory design can also achieve greater productivity and a higher rate of customer satisfaction. For more information about how to optimize sales territories or to acquire sales mapping software, reach out to Geographic Enterprises today.