A sales territory plan refers to the strategic organization of sales territories with the goal of maximizing productivity and revenue. Through effective sales territory management, businesses can prevent overlap between field representatives, saving time and money. Sales territories target specific regions, industries, customers and opportunities, while also allowing sales teams to identify prospects within their sales territories. Most importantly, sales territory planning empowers businesses to set realistic goals and more easily track their progress. Well tracked progress allows businesses to replicate their success. Learn more about how to plan sales territories and how sales territory mapping leads to accelerated sales growth.
Benefits Of Sales Territory Planning
Sales territory planning can deliver a wide range of benefits to businesses. It can boost a sales team’s morale, inspire team cohesion, increase sales, and result in a larger customer base. Effective territory mapping can also be essential for hitting important sales goals. When sales territories are geographically managed by sales history, sales potential, or other factors, businesses are able to make well-informed decisions about territory boundaries. This can result in an increase in sales and profits as sales reps are more organized and understand which customers are more likely to result in sales.
Planning sales territories can also enhance customer coverage. When sales territories are too large, certain customers may get overlooked. By creating a sales territory, sales teams can better manage which customers should be served and in what order, based on geographical location and the likeliness of making a sale. The planning of sales territories can also lead to better control of sales operations. When a geographic area is broken down into smaller units, the control of sales operations becomes more effective. A good sales territory plan can result in saved time and money, as well as higher sales volumes.
How To Effectively Plan Sales Territories
Sales territory planning can be a complex process but there are certain strategies that can help streamline the process. With sales territory mapping, managers are able to create an organized system that ensures sales reps are not overlapping regions or selling to the wrong customers. Sales territory planning is simply the process of developing a workable plan that can target the right customers and help ensure an increase in sales over time.
The basic steps to plan sales territories include the following:
Define Your Market
The first step in the sales territories planning process involves defining the target market. There is more than one way to define a market such as by size, geography, or customer demographics like age or income bracket. How a market is defined will be based on a company’s unique needs and organization preferences. Customers should be further categorized as top customers, prospects, and leads. The best customers are the ones that require little effort to create a sale. Prospects are customers that require a little more work but have a potential revenue gain. Finally, leads are customers that require a lot more work and should be left to the best reps.
Assess Quality Of Account & Territory
Next, it is important to assess both account quality and territory quality. Once a target market has been defined, sales leaders will need to evaluate each account’s value. Depending on the unique product or service, this measurement may be quantitative or qualitative. Identifying the value of each account allows businesses to better prioritize based on their sales territory planning. Similar to assessing accounts’ values, assessing territory quality is also subjective and based on the unique priorities and needs of the business. By determining which sales territory supports which areas of the sales funnel, sales teams can more easily categorize territories by low, medium, or high value.
Review Strength Of Representatives
Once the quality of each sales account and territory have been determined, businesses should assign reps to each set of accounts based on certain criteria. Each rep possesses unique skills that can help increase sales by closing important deals; however, not every rep is suitable for every set of accounts. It is important to review sales data to determine the strongest performers within an organization to ensure they are assigned accordingly. After reviewing the strengths of all representatives, they can be matched with a corresponding sales territory.
Acquiring Sales Territory Mapping Software
By utilizing sales territory mapping in combination with the steps above, sales teams are able to visualize their territories and create efficient targeting strategies and routes when out on the road. Sales teams are are able to easily optimize their sales routes, identify sales patterns and discover new sales opportunities within new and existing sales territories. Businesses are also able to share sales territory maps with members of their sales teams so they can visualize their goals easier and increase the efficiency of their routes, which can either be printed or electronically shared within their organization.
Consult With The Sales Territory Mapping Experts
Sales territory planning allows sales teams to clearly define territory ownership on a map. Planning sales territories involves more than just drawing geographical borders, businesses must also balance key elements such as skill distribution and sales force tenure. To learn more about how to plan sales territories, reach out to the sales territory mapping experts at Geographic Enterprises.