As organizations become more analytical and performance in today’s data-intensive market, there has been a surge in sales organizations investing in Territory Management Software to enhance their sales performance.
This means organizations are now looking for ways to make sales data easier to digest and gather insights such as market gap analysis and over-serviced territories. But what exactly is Sales Territory Management and Alignment? Firstly, we need to define a Sales Territory itself:
What is a Sales Territory?
A Sales Territory is the customer group or geographical area for which an individual salesperson or a sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.
What is Sales Territory Management?
Sales Territory Management in simple terms is a methodology to control, optimize and improve territory alignment and structure of an organization’s sales resources and activities. This can include balancing and aligning territories so that sales personnel and resources are being used effectively to maximize the productivity of your sales team. Sales Territories are often unbalanced; some may be underserved or valuable resources could be misdirected to a low-value area.
What is Sales Territory Alignment?
Territory Alignment is a well known and commonly used sales productivity technique whereby specific geographical or regional sales territories are assigned to a specific salesperson. The basic building blocks are usually states, counties, cities and zip-code areas; large customer accounts locales or a combination of these factors. Territory balancing refers to ensuring that sales territories themselves are equally distributed among the sales team.
Poor Sales Territory Management can lead to unbalanced territories, which can be a headache for sales teams. If a salesperson’s territory is too large or if their workload is too heavy, they cannot effectively cover all customers and prospects. Conversely, a salesperson whose territory is small or not populated enough has too little work and can end up wasting their potential on low priority clients, leading to under-utilized sales resources and an unmotivated workforce.As a result, the company loses money, time, and potential customers. Balanced territories on the other hand, are proven to be effective and efficient, allowing you to get the most from your sales team by allocating sales opportunities more equitably. Sales Territory management software ensures efficient coverage of sales territories, improving lead development, increasing responsiveness to emerging trends, and balancing the workloads of employee’s, thereby maximizing the company’s performance and profits.
To find out more, check out our new free eBook – A Quick Guide To Sales Territory Management to learn more and start improving your sales!
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