Much of the first two blogs were about discovering, understanding, and finding ways to maximize the market potential for your sales organization.


Now that you have determined true Territory Potential using the process in my last blog and had a head start of downloading the Territory Planning & Sizing Calculator, you are ready to begin enacting your master plan. 


Step 4: Map Information to Sales Territories

In order to properly map and apply all of your information to your Sales Territories, you must first calculate your Territory Pot. It’s very simple:


Territory Potential = Existing Customer Base + Pipeline + Prospects

When calculating your Territory Potential, be sure to eliminate any duplicates (ie: Existing Customers currently in the Pipeline for a new contract) in order to get the most accurate Sales Territories.


Prospects and Opportunities


Step 4a: Optimize and Balance Sales Territories

After you know your Territory Potential, you have the data you need to begin to balancing and optimizing your Sales Territories.


Territories can be balanced by a number of criteria, including:


  1. Revenue Potential
  2. Average Revenue
  3. Customer Count
  4. Opportunity Count
  5. Location
  6. Vertical (Industry)


Balanced territories allow you to allocate effort evenly. This process assures that all sales opportunities are being properly pursued, and existing customers are receiving the attention they deserve. Make sure that your territories have concise geographic boundaries. (Additionally, properly balanced territories can eliminate disputes between sales reps about potential revenue in a given territory)


Steps 5 – 6: Produce and Refine Sales Territories

There are a few important processes that you must complete throughout Steps 5 and 6 in order to finish up the Territory Design process. Once you have completed these, you should have a Sales Territory Network that is optimized, aligned, and balanced. Furthermore, it is a Network that you will be able to more fully understand, as well as use to predict your productivity in the future.


Perform the processes below:


  • Understand Potential Distribution
  • Prioritize Accounts in Each Territory:  This is one of the most important steps to Refining your Sales Territories. It’s paramount that you know which Accounts are the most important to your sales organization. This determines which sales reps you assign to which Territories, and how much effort to expend.
  • Know Prospect Density: This is another way for your sales organization to portray where the most demand, or potential, is. It’s not a bad idea to put together a “Heat Map” like the one portrayed above to illustrate the regions of greatest Opportunity and Prospect Density.
  • Best Practice: Assure that sales reps with the largest work capacity and best historical win rate get the largest Territorial Patch. It’s the same idea behind why a sports team wants their best player to have the ball in the closing seconds of the game – you increase your chances of success by putting your best players in a situation where they can help you win.


In closing…

Hopefully this blog series has shown you some of the benefit behind doing the proper Sales Analysis before and after desiging your Sales Territories. The information to be gleaned from these processes can lead to much more balanced, aligned, and optimized sales territories – as well as improved numbers from year to year.




Follow @MakingTheNumber