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.
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.
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:
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:
Creating an effective sales territory plan streamlines the sales process, but there are many more benefits that come along with it:
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.
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.
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.
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.
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:
Ready to build your sales territories? Sign up for a free trial of Maptive and start territory mapping today.