- Focused Account Consolidation (Customer driven)
- Workload Leveling (Activity driven)
- Territory Compression (Cost driven)
Typically data analysis focuses on one of the following four approaches:
1. Named Account Approach – Focus on high value targets or expressed “named accounts” as the main driver of the territory design effort. In this case, there are subsets of accounts that matter.
2. Industry Approach – Leverage detailed market segmentation analysis to determine the ideal customer profile in one or more key industry verticals that have a high propensity to buy your product.
3. Sales Frontier Approach – Each territory is analyzed for potential and the corresponding performance is charted on a graph. The outer frontier of performance for various territories is analyzed to determine a band of acceptable potential which should drive territory definition. This approach assumes that peak performance is possible given a certain territory potential and therefore other factors are responsible for sub-peak performance after the alignment.
4. Metro Compression Approach – Optimize territories around dense metro cores where the largest concentration of target accounts exists in the smallest geographical area with some alternative plan to cover (or not cover) accounts outside of major metro areas.
Which approach you choose depends on available data and a determination which approach will yield the best chance to achieve the primary goal of the territory design.