Chapter 1: What is sales territory management?

Conquering sales territory management - The ultimate guide

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What is territory alignment and balancing?

Territory alignment is a proven sales productivity technique where geographical or regional sales territories are assigned to a salesperson.

The basic building blocks are states, counties, ZIP code areas, or accounts (often referred to as points-based territory design). Territory balancing ensures that sales territories offer equal opportunity or sales potential for salespeople. Ensuring the organization maximizes revenue potential.

Depending on your market condition, the activities and resources of your sales team, their objectives, and the insights gained from visualizing your spreadsheet data. You may want to balance assigned territories on sales potential, travel time, workload, or multiple weighted factors—for example, the volume of customers, opportunities, leads, or territory size.

Balanced and aligned territories are proven effective and efficient, allowing you to get the best performance from your sales team.


Benefits of territory alignment

Unbalanced sales territories are a headache for sales operations, leaders, and salespeople. If a salesperson's Territory is too big or if the workload is too heavy, they cannot effectively cover all customers and prospects.

A salesperson whose Territory lacks opportunity or has too little workload can waste their potential on low-priority clients, leading to underutilized sales resources and an unmotivated salesforce. As a result, the company loses money, time, and potential customers.

Balanced territories are effective and efficient, allowing you to get the most from your sales team by allocating more equitably sales opportunities.

Territory management software ensures efficient coverage of sales territories, meaning sales reps spend more time selling to higher-quality customers. It results in more profitable selling time, lower travel costs, and more motivated sales reps who can maximize their earning potential.

Learn how sales territory management can help your sales teams

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