According to Statista, there were 18,957 mergers and acquisitions in the US in 2017. For sales teams, this represents opportunity on one hand, but uncertainty and ambiguity on the other. The complexities involved in merging sales territories and reps in the field can cause the new salesforce to fumble throughout the year. Crucially, McKinsey stated the first hundred days after a merger closes are critical to demonstrating its value and tangible benefits to the sales force, customers, and investors. Get the first 100 days right and you are set for growth. Here's how:
1. Start as You Mean to Go On
Good territory management is enough of a task on its own, merging new and existing territories is a whole other world. To do this effectively, you need to look at where all your new and existing customers and sales reps are and design accordingly. This of course takes time and as stated before we have 100 days to get it right. A territory mapping tool will give you the perspective needed to achieve this. For example, customers Engel & Volkers reduced the time it takes to design territories from 6 days to 90 minutes. This means you have the time to ensure you get your territories right from the get-go.
2. Balance Territories for Performance
Having to design new territories gives sales management a chance to redefine what territories are based on. For example, a lot of territories are designed on geographic distance, but this approach can be too simplistic. If you want to optimize potential performance for each territory manager and sales rep, it's better to balance territories on revenue. This gives sales management a more transparent view on territory performance. It also gives sales reps an equal chance in commission earnings, this is crucial for avoiding conflict in the first 100 days of a merger or acquisition.
3. Make Changes Clear to Sales Reps
Sales reps are perhaps the most vulnerable employees in any merger or acquisition. All the uncertainty and change often see rival companies swoop in with job offers. Sales management is happy with their new territory designs, but we must consider what this means for sales reps. Did I lose or gain accounts? If so, where are they? Do I try to sell all products to all accounts? This kind of confusion is what often leads to poor performance in those first 100 days. What they need is a tool to gain a view of what their accounts are, where they are, and what type of products are sold to those accounts. Also, the locations of potential new business in their new territories.
As you can see, achieving effective territory management after mergers and acquisitions is a difficult task. But we provide the solution to making it a lot easier for everyone. Schedule a demo below.