Sales territory design - aligning to your strategy
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The document outlines best practices for sales territory design, emphasizing alignment with sales strategies and goals such as focused account consolidation, workload leveling, and territory compression. It details data analysis approaches to optimize territory effectiveness, including named account, industry, sales frontier, and metro compression analyses. The final sections encourage assessing data availability and in-house talent in territory design planning.
Sales territory design - aligning to your strategy
- 1. Sales Territory Design: Aligning to your StrategyAre you ready to be world Class?
- 2. Best PracticeTerritory Design should support and align with your sales strategyStrategy scenariosIntegrate acquired company’s sales forceAchieve cost of sales reduction Segment sales force for focused selling into key marketsBalance sales coverage for expanding and contracting markets
- 3. Key Inputs into Territory DesignMarket Potential
- 4. Assessed through data analysis on the universe of prospects and accounts who can purchase your products/services
- 6. Determined through the use of activity models and the consideration of time/cost/resource allocationsTerritory Design ProcessThis presentation is focused on concepts that support steps 1-3 in the process. Namely:Territory design goals
- 7. Data analysis approachesTerritory Design Process
- 8. Territory Design GoalsOptimize results by optimizing for one of three common goals:Focused Account Consolidation (Customer driven)Workload Leveling (Activity driven)Territory Compression (Cost driven)
- 9. #1 Focused Account Consolidation Main driver - need greater effectiveness in specific accounts or market segments that contain the best “opportunity”. Benefits:Increased average transaction size
- 11. Increased upsell/cross sell transactions
- 12. Increased share of wallet
- 13. Increased new customer acquisition
- 14. Protected relationships with high value customers#2 Workload LevelingMain driver – need greater effectiveness by redefining territories to eliminate imbalances in account and opportunity distribution. Benefits:Balanced performance across sales territories
- 15. Increased average transaction size
- 16. Increased number of deals per period
- 18. More consistent market penetration rates#3 Territory CompressionMain driver - need for greater cost efficiency by redefining territories to be geographically dense. Benefits:Lower travel expense
- 20. Lower cost of sale
- 21. Higher activity ratesData Analysis ApproachesData analysis focuses on one of the following four approaches: Named Account ApproachIndustry ApproachSales Frontier ApproachMetro Compression Approach
- 22. #1 Named Account Data AnalysisFocus on high value targets only (named accounts) for your TD effort.
- 23. Typically used in support of the Focused Account Consolidation goal
- 24. Fully capture all current spend, future potential and workload by named account#2 Industry Data AnalysisDetermine the ideal customer profile in one or more key industry verticals that have a high propensity to buy your product
- 25. Limit the future territories to the key industry verticals
- 26. Fully capture all current spend, future potential and workload by account in key verticals#3 Sales Frontier Data AnalysisAnalyze territories for potential and chart corresponding performance on a graph.
- 27. The outer frontier of performance for similar territories sets the bar for territory definition.
- 28. Assumes peak performance is possible given a certain territory potential and other factors are responsible for sub-peak performance.#4 Metro Compression Data AnalysisOptimize territories around dense metro cores
- 29. Largest concentration of target accounts exists in the smallest geographical area
- 30. Plan for accounts outside of major metro areas with indirect channels or inside sales
- 31. Typically used to support cost reduction in Territory Compression goalTerritory Design PlanningWhich of the 3 TD goals best supports your sales strategy next year?Focused Account Consolidation (Customer driven)Workload Leveling (Activity driven)Territory Compression (Cost driven)For a given data analysis approach, do you have the data you need?
- 32. Do you have in-house talent to perform the analysis?Learn MoreContact us to hear the rest of the story...Email - info@salesbenchmarkindex.comPhone - 1-888-556-7338Web: http://www.salesbenchmarkindex.com/
Editor's Notes
- #16: Contact us if you would like to understand how you can leverage territory design to increase revenue.Email - info@salesbenchmarkindex.comPhone - 1-888-556-7338Web: http://www.salesbenchmarkindex.com