article |
August 5, 2011
How to use Sales Analysis to Optimize Territory ROI
By:
You have a limited amount of resources, and to top it off, you are being asked to a make cuts in your overall sales investment. As a sales leader, how do you decide how to deploy, cut headcount, and make deeper investments with finite resources? Sales Analysis through a Return On Investment (ROI) technique is an insightful method on how and when to invest dollars into selling resources. It answers the crucial questions of in which territories should I increase my investment, and in which territories should I trim my investment or possibly reallocate to a more profitable portion of my business.
The following discussion details how to use Sales Analysis and the Territory ROI framework to make these crucial decisions.
The steps to quickly and systematically make these decisions using the ROI technique are as follows:
1) Capture Annual Sales by Territory.
2) Capture Territory Cost. Identify the true sales analysis territory cost to serve and support a particular patch. The total territory cost is typically comprised of several key elements:
Sales Analysis – Territory ROI technique
The chart above visually illustrates the top performing territories and highest ROI-yielding territories. You will immediately note that the top performing territories rise to the top left hand quadrant of the graph (APAC #1 in Quadrant A). APAC #1 yielded a $12MM annual sales return while only consuming about $300k in selling cost. Lower returning territories will be positioned in the lower right hand corner, or Quadrant C, like the US – SW territory. This territory only yielded a $5MM sales return with a $700K sales resource investment. Overall, a relatively poor investment.
Sales Analysis provides a clear and concise guide to making solid investment decisions.
Sales Operations leaders should redesign sales territories to reflect the changing landscape, optimi...
Brad Christian, Chief Customer Officer of Market Force, joins us to share the true meaning of custom...
As Summer wraps up and a successful third quarter draws towards a close, it’s time for sales l...
As a marketing leader, if you have ever thought about where your next new form of revenue is coming ...
Have you found that your revenue trends haven’t increased with your sales expense? Are you wai...
It’s September. You and the rest of the executive team are beginning to think about next year&...
Every year, thousands of companies spend millions of dollars on sales kickoff (SKO) events. You are ...
As CEOs and CMOs continue to invest in customer experience programs, many are starting to build inte...
© 2017 Sales Benchmark Index (SBI)
A Business Strategy Consulting Company
2021 McKinney Avenue, Suite 550
Dallas, TX 75201
European HQ
© 2018 Sales Benchmark Index (SBI), B.V.
A Business Strategy Consulting Company
Cornelis Troostsraat 29
Amsterdam, The Netherlands
1072JA