Sales Territory Management Benefits & Best Practices

Sales Territory Alignment

Sales territories are essential for your business to optimize its performance. They allow for more efficient customer service and create an even playing field for every member of your sales team.

But in order for this system to work, your territories need to be aligned and managed properly. This requires a thorough analysis of your customers, markets, and sales teams to determine the best course of action.

In this article, we’ll discuss effective sales territory management, along with tools that are available to help you align your territories effectively.

What is Sales Territory Management?

Sales territory management is an ongoing process that involves analyzing and improving territories to maximize sales. Businesses that do this effectively serve their customers better and get the most out of their team.

A good territory management strategy starts with sales territory alignment and planning.

What is Sales Territory Alignment?

Before you can begin managing your sales territories you need to ensure that they’re aligned in a way that sets you up for success. Sales territory alignment (also known as sales territory planning) is the process of establishing your sales boundaries and assigning team members and resources to specific territories.

Most businesses create territories based on established boundaries, such as zip codes, cities, counties, or states. You’ll need to determine whether these divisions make sense for your business, or if you need to create new boundaries based on the requirements of your business.

Good sales territory alignment will improve both your efficiency and results. However, when executed poorly you may end up wasting time on bad leads, providing poor service to your customers, or giving your sales reps more accounts than they can handle.

Here are some factors to consider when aligning your sales territories:

  • Customer Locations: How is your customer base distributed? 
  • Account Size: Some accounts are bigger than others and will require more time from your sales team.
  • The Location of Your Salespeople: Where are your salespeople located and do their locations work with your ideal territories? 
  • Travel Distance: How far will your salespeople have to travel in order to serve their customers? 
  • Opportunity: Is there ample opportunity in each territory to make sales and create new business?

What Are the Goals of Sales Territory Alignment?

When you’re creating and aligning your sales territories, it’s important to know what you’re trying to achieve. Here are some goals you should work towards:

  • Matching Sales Ability to Markets: Every market is different and some salespeople may be more suited to certain markets than others. Assess the skills of your team members and ensure they’re assigned to a market that gives them the best chance to succeed.
  • Keeping Sales Territories Balanced: It’s important that every sales territory has relatively the same number of accounts and prospects within it. This ensures that each team member has an equal opportunity to succeed.
  • Effectively Distribute Your Sales Teams: Make sure to create territories that can be properly serviced by your team. If travel times are unrealistic it will lead to poor customer service and disgruntled team members.
  • Increase Motivation: Ensure every territory gives team members the opportunity to reach their sales goals. This will ensure that all your reps stay motivated no matter which region they’re assigned to.
  • Create Boundaries That Align with All the Above Factors: When drawing boundaries, make sure to consider all your goals before finalizing your decision. If you overlook just one factor your sales performance could suffer.

What Are the Benefits of Sales Territory Planning?

Creating an effective sales territory plan streamlines the sales process, but there are many more benefits that come along with it:

Reduce Travel Time and Costs

Every second your salespeople are on the road is another second they’re not able to make a sale. More travel time also means higher fuel costs and other expenses.

By assigning customers and accounts to salespeople that are nearby, you’ll reduce the amount of time it takes for your team to travel to them. Not only does this mean they can handle more accounts, but they’re also able to serve them better, leading to higher customer satisfaction.

Every Customer Receives the Same Level of Service

Without proper sales territory management, you might end up with customers that aren’t receiving the same level of attention as others. This could result in lost accounts and poor customer relationships.

The sales territory planning process allows you to see where every account is located and ensure there’s a salesperson nearby that’s assigned to them. This means that whether a customer is in the city or a rural area they always receive the attention they deserve.

Reduce Employee Turnover

Losing employees isn’t just a hassle, it also expensive. Hiring, onboarding, and training new employees takes time and money that’s better spent on generating new leads. So, keeping your team happy and content with their job is good for business. 

Properly aligned sales territories ensure things stay fair for every rep and remove the possibility of any perceived favoritism. When everyone has the chance to make sales and reach their quotas it boosts morale and means they’ll be more likely to stay with you long term.

Improved Marketing Campaigns

The best marketing is targeted to a specific region. This is a lot easier to do when your customers are already divided up into territories.

Good sales territory planning means each sales team knows exactly where their customers and accounts are located. This allows them to develop campaigns and promotional materials that are directed at those unique areas and demographics.

How Maptive Makes Sales Territory Management Easy

In order to perform sales territory alignment properly, you need access to the right data. You also need a way to visualize those metrics and ensure you don’t overlook important details and insights.

Mapping tools, like Maptive, are the ideal sales territory management software. By plotting the locations of your customers, accounts, salespeople, and offices, you’ll have all the information you need to create the perfect territories for your business.

Here’s how Maptive helps you with sales territory management:

  • Easily Plot Location Data:Upload addresses from a spreadsheet or CRM and plot them on an interactive map in seconds.
  • Boundary Tool: Create boundaries based on zip codes, counties, states, and other established geographical regions.
  • Drawing Tool: Draw custom boundaries based on the distribution of your customers and salespeople.
  • Heat Maps: Plot the locations of your customers to identify areas with the most sales and regions where you need to improve. This could help you uncover untapped markets and new opportunities.
  • Filter Data: Use the filter tool to easily hide certain data points and only focus on the most important information.
  • Optimized Sales Routes: Determine the quickest route between your sales teams and their customers. This decreases their travel time and improves efficiency.
  • Shareable: Once your territory map is complete, upload it to a website, send your team members a link to your map, print off an image, or export data to a spreadsheet.
  • Cloud-Based: Access your map anywhere from any device. Make changes from the office, when you’re with a customer, or while you’re on the road. These changes are instantly viewable by your entire team.

Create Your Sales Territory Map Today

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