Sales territory mapping is an essential process in sales. But it can be difficult to get right without the right tools. The right data can help you design optimized territories that keep your customers and market in mind. This can improve quota attainment and drive more revenue.
Start with customer data like demographics and firmographics to identify your ideal customer profile (ICP). Then, use geographic data to create logical sales territories that are travel-efficient.
Identify Your Target Market
There are several ways to design sales territories, but choosing the right one is important based on your business model and customer needs. Some approaches, like industry-based territory mapping, assign reps to specific client industries and verticals. For example, Team A may sell to construction clients, while Team B focuses on education-related businesses. Another option is to use product-based territory mapping, which assigns reps to particular products or technological offerings. This is particularly useful when you have different products that appeal to different types of customers.
Once you’ve decided how to divide your territories, it’s important to determine how much revenue potential each will hold. This will allow you to set realistic sales goals and ensure that each territory has enough opportunities for your reps to hit their targets.
The easiest way to calculate your market potential is by using a sales territory mapper. This software can help you visualize your territory boundaries and identify high-value accounts. It can also provide insight into your competitors’ presence in your territory, which will help you make informed decisions about allocating resources and improving your sales strategy.
Assess the Value of Each Account
Using a sales territory mapper, you can assess the quality of each account to prioritize them in the sales pipeline. Consider factors such as sales cycles, churn rates, repeat purchases, and more to evaluate the overall health of each territory. This will allow you to design more targeted sales campaigns that align with your goals.
Before mapping out territories, looking at your business goals and objectives is important. Considering these will help you determine how many accounts each rep should have, how large a territory is, and whether it’s over- or under-performing.
You should also evaluate customer data to identify specific segments with similar characteristics. This may include geographic location, business size, industry, target demographic, or product/service need. Grouping these segments will enable you to divide opportunities evenly across each territory.
You may need to set up industry-based sales territories depending on your business type. For example, you could assign your sales team to each industry vertical if you sell technology solutions for different industries. This way, each team member can focus on the clients benefiting from their expertise. As a result, you’ll be able to reach more customers and increase your revenue potential. This type of division of territories also improves efficiency, guards against sales reps poaching each other’s accounts and boosts morale.
Segment Your Territory
Once you’ve analyzed the value of your accounts and identified your ideal customer profile (ICP), it’s time to map your sales territories. This is a critical step to ensure your salespeople can focus on the right leads and customers. You can use a territory mapping tool to divide your territory based on geography, industry, product, or revenue potential. By using this data, you can ensure that your team’s assignments are logical and realistic.
Once your territories are designed, communicate them to the team and enforce the policy to eliminate conflict and confusion. A clear and fair allocation of territories can also help mitigate capacity overload or fatigue among your reps, leading to missed opportunities and lost sales.
It’s important to reevaluate your sales territories regularly. The market might change, a competitor might move in, or you may need to adjust the number of reps per territory. A good territory mapping software should allow you to update the map and make changes as needed easily. It should also be easy to communicate with your team so they can be prepared for any potential adjustments. This will also help to keep morale high and prevent your salespeople from feeling overwhelmed by the volume of work they have to manage.
Assign Sales Reps
When designing territories, a sales territory mapper lets you consider customer and market data. This allows you to identify high-value accounts more likely to convert and map them appropriately so your reps can hit their quotas. It also allows you to compare your customers to other potential buyers to see where new opportunities may exist.
Your team is also important to consider when creating your sales territories. The territory you assign to your team members must align with their skills, interests, and capacity. For example, if you have a salesperson with extensive industry experience, you might want to consider a geographic or product-based territory. A SWOT analysis of your salespeople can help you better understand their strengths and weaknesses to ensure they’re matched with the right territory.
It’s also important to review and adjust your sales territories regularly. Business, team composition, or customer growth changes can cause an imbalance. A well-designed template is agile and adaptable, so it’s easy to shift, merge, or add new territories as needed. This avoids wasting time on unnecessary manual processes and ensures your team has the proper coverage to meet their go-to-market goals. This will also mitigate the risk of overworking your salespeople, which leads to burnout and a loss of morale.
