Step 1 – Baseline Current Performance: Analyze the performance of each existing territory including prior revenue performance, product/service revenue mix, customer counts, prospect counts, current pipeline opportunities, sales rep talent, etc. The output is a baseline of current territory performance.
Step 2 – Analyze Existing Customer Spend: Use historical customer spend to determine the correlation between customer firmographic information (revenue, number of employees, number of locations, etc.) and the spend level for each product/service offering. The output is a frontier assessment that predicts spend potential for each customer/prospect “segment”.
Step 3 – Determine Market Potential: Compile the universe of customers and prospects, and then overlay the frontier assessment from Step 2. The output is the spend potential for each prospect/customer which can be aggregated to identify the total market potential.
Step 4 – Produce Initial Territories: Map the accounts by segment driver to optimize results based on either the Focused Account Consolidation (Customer driven), Workload Leveling (Activity driven), or Territory Compression (Cost driven) approach. The output is an initial draft of territories including an aligned assignment of reps – the “best” reps are assigned the “best” territories.
Step 5 – Re-Balance Territory Assignments: Based on territory assignments balance territories by number of existing customers, number of prospects, total market potential, workload, number of existing opportunities, rep potential, etc. Consider the positive/negative implications of account re-assignments and penetration goals to determine the optimal balancing. The output is a final set of territory assignments.
Step 6 – Create Territory Plans: Create territory plans including the prioritization of accounts and territory specific goals for revenue, account acquisition, share of wallet, penetration levels, etc. Be realistic when setting goals for each territory considering workload constraints and the “warmth” of each territory. The output is a territory plan per territory that will govern the activities within the territory.