Why You Should Balance Your Sales Territories | Varicent

The allocation of sales territories has been going on since people started selling. Even in the days of a one-person operation, there would be some sort of geographical attack plan. Typical questions would be: Do I stay local and build up customers and relationships in my own neighborhood? If my product offering is niche or specific to a target age group or audience, would I be better off going to an area where there is more likely to be demand? And what tools and resources do I have at my disposal to map that journey?

As companies and product lines expand, and as sales teams cover more ground, the business balancing sales territories becomes more complicated. Some reps may overstep their territorial boundaries. Others, find themselves in a slow-moving region and either get frustrated or complacent. Or, unforeseen circumstances like a bad economic trend or natural disaster can create territorial inequity overnight.

But it doesn’t have to be that way.

Reasons to Balance Your Sales Territories

This blog looks at why you should balance sales territories and how the correct choice of supporting software can quickly bring rewards for both your sales team and customers. It’s all about doing “more” of the right things, with help from a decent territorial management software solution.

1. More Even Service and Workload Levels

The first thing you’ll notice when sales territories are out of kilter is that there is a situation of that area being either under-or over serviced. The former occurs when your sales team is spread too thin (either over a distance or by the number of accounts and leads they have been assigned) which means customer relationships may suffer and the salespeople themselves are unable to keep up with the work and the business of chasing prospects. The over-servicing outcome is when a territory has too many people vying for leads and sales, which can create some aggressive competition between colleagues or leave others with little to do. By utilizing territory planning software assigning people to territories is no longer a guessing game. Real-time visibility means that you can instantly see if a territory has become saturated or depleted, so you can act before sales are missed or customers consider moving over to competitors.

2. More Accurate Data and Metrics

Without accurate data to back up and balance your sales territory plan, you’re sending your sales army into battle unarmed – whatever front or position they’re posted to. More aligned and balanced sales territories are the result of value-rich metrics, advance “what-if” scenarios, and deep market research. By using territory planning software to determine the local appetite for your product, average income, and competitor presence, your sales team is armed with information to present their pitch and close a deal. This critical data will also help you make clearer decisions on how to resource a territory and the type of sales team that is required there.

3. More Focused Goals and Targets

The benefits of balanced territories extend further than deploying the right people to the right places at the right time. The beginning and finishing point for any sales campaign is if objectives were met and revenue was on target. With so much of that result dependent on the effectiveness of the sales team, it’s vital to keep the alignment of sales territories as a priority. A robust territory plan goes together with quota allocation and ensures every individual and team member is working toward set goals. And even better if they can chart and enter their progress on accessible software, rather than phoning it.

4. More Motivated Sales Teams

We’ve hovered around the issue of the damage that can be caused by an unbalanced sales territory strategy, but let’s conclude by addressing the elephant in the boardroom. If a sales professional gets a sense of unfairness – whether that’s being given too much or too little opportunity, being sent to a territorial wasteland, or through no fault of their own, missing out on possible compensation payments – they are likely to leave or stop trying. If, however, your sales team is invited to participate in a sales territory program that automatically detects territorial issues and recognizes when things are going well, your sales team will be invested in the ongoing success of their team, as well as their own on-the-job development and progress.

The Art of a Balanced Territory Plan

In his book, The Art of War, writer and military strategist Sun Tzu famously wrote “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” This was likely to have been one of the very first game plans for an army and can still be applied today, whether in battle or business. He also said, “Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.” Which is a thought.

If you’re looking for a more bloodless victory to support your sales territories plan, the Territory and Quota Planning (TQP) solution from Varicent can help you ensure every territorial advancement and change brings you closer to your goals.

Discover more by booking a demo with us today.