Chapter 1: What is sales territory management?

Conquering sales territory management - The ultimate guide

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What is territory alignment and balancing?

Sales territory alignment is a proven productivity strategy in which a company distributes accounts to individual sales reps by specific geographic or regional territories. 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.

You may also want to balance your assigned territories based on factors such as:

  • Sales potential
  • Travel time
  • Workload
  • Customer volume
  • Opportunities
  • Leads
  • Territory size

It's often best to select multiple weighted factors that are relevant to your overall business goals. That way, you can align and balance your territories for optimal performance and efficiency.

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 equitable sales opportunities.

With strategic, equitable alignment and balancing, you can get the most out of your sales team by:

  • Improving selling time profitability
  • Reducing travel time and costs
  • Motivating sales reps with high-quality clients
  • Maximizing your overall earning potential

At the end of the day, the way you align and balance your territories has a massive effect on your bottom line. To ensure you're achieving your revenue goals, you need an effective territory management system and process.

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