A sales territory is defined as a geographical area or customer group in which a salesperson is held responsible. Sales territories are a cost-effective way for managers of sales teams to strategically and fairly divide their sales force by assigning each representative to a specific customer group or territory. When sales territories are effectively allocated, sales managers are able to boost productivity and achieve a higher rate of efficiency.
Sales territories are most commonly defined by geographic location but can also be represented by customer names, sales history, competitive activities, or sales potential. When used to its full potential, sales territory mapping can offer countless benefits, such as an increase in sales, saved time, enhanced collaboration, and fair delegation of work.
The Purpose Of A Sales Territory
The primary purpose of a sales territory metric is to develop balanced sales territories. Territories can be analyzed in a variety of ways, such as by their size or sales potential. As the market can quickly change, it is essential to keep an eye on sales territory by integrating new data as it arrives.
When territories become unbalanced, some sales reps may be given too much work while others may be unable to meet their quotas. This can lead to unfair distribution among employees which ultimately impacts morale and overall performance. There are multiple tools that businesses can use to keep an eye on future sales targets and potential changes in territories, such as a sales potential forecast. A forecast may include the number of prospects, as well as their potential buying power.
Identify Opportunity For Growth
Creating sales territories is also a great way for businesses to identify opportunities for growth. There may be opportunities in the marketplace that are untapped. You may also discover underserved territories that your sales reps could benefit from while also expanding your territories. When creating your sales territories, consider if there is a growing demand for certain products or services in your local area; also consider the number of competitors your business faces.
There are also other opportunities that businesses may discover when defining sales territories. The use of sales territory mapping software can help you find more opportunities for growth and can make it easier to identify patterns and trends that can aid in your company’s success. Consider if there are opportunities for positive press or media coverage for your business.
Create Drive In Sales Employees
Motivating your sales team is not always easy; employees can often experience low morale when they fail to meet their quota or have trouble securing a sale. However, there are ways to create drive in sales employees which can increase the overall productivity of your sales team. First, you will want to build trust with your team and one of the best ways to build trust is to be transparent. Having clear sales territories can be a great way to drive sales employees.
Another way to create drive in employees is to set daily, weekly, and monthly goals. Having both short-term and long-term goals can help motivate employees to work towards something important. Find out what motivates your team; some employees are motivated by the impact that they make on their business, while others are motivated by money or other benefits.
Easily Organize Business Goals
Clearly defined sales territories can also provide businesses with other benefits. For example, sales territories can help businesses more easily organize their goals. Using the data that has been gathered from analyzing your sales team, customers, and resources, you can set short-term and long-term goals for your business. Goals can vary from business to business and may relate to your monthly income, number of sales attempts, number of sales closed, or the ratio of leads to sales closed per week or month.
Once goals have been set, you can create a measurable strategy for meeting each of your goals. Develop milestones for getting to your goals and set realistic deadlines for meeting each milestone. You will also need to determine how you will measure success. Measurements may include leads created, leads contacted, or even leads closed. By organizing and meeting your business goals you can push your business to expand thrive.
Reach Out To A Professional Sales Territory Mapping Company
Each territory has its strengths and weaknesses, how these territories are managed can make all the difference in your ability to target and close sales. Defining sales territories can offer businesses a wide range of benefits, such as the ability to cover the market properly, facilitate higher productivity among sales representatives, control selling expenses, and better coordinate selling and advertising. Want to learn more about sales territories or how to use sales territory mapping software to help grow your business? Reach out to the mapping software experts at Geographic Enterprises.