As we rapidly approach Q4, you are behind the ball if you haven’t finalized your 2019 Territory Design. According to Harvard Business Review, “Research shows that optimizing territory design can increase sales by 2% to 7%, without any change in total resources or sales strategy.” However, a misaligned territory design can oftentimes be worse than no territory design at all. In the next paragraphs we will review the common mistakes that your competitors make when designing their territories, and provide a tool for you to begin gathering the necessary information to create an effective 2019 Territory Design.
Whether you are starting from scratch, redesigning your current model, or expanding over last year’s model, the benefits of territory design mean that you are targeting the right customers at the right time, and assigning the right accounts to the right reps. Not to mention, you now know exactly who and where you need to hire in order to hit your number.
Download the Territory Design Approach Tool to follow a proven best practice approach, provide your team with a roadmap, and validate or identify gaps in your existing model.
Traditionally, a “territory” has referred to a geographical region or area assigned to a team or rep. However, in modern times, you cannot afford to utilize a traditional model. Today’s cutting edge territory designs encompass many different perspectives including, but not limited to, geography, sales potential, customer type, rep capabilities, salesforce capacity, and market movements. The vast majority of territory design flaws are less the result of what inputs you do use, and more the result of what inputs you don’t use. Read on for common errors in territory design.
Common Territory Design Flaws
- Territory Design without regard to Geography
- Territory Design without regard to Sales Potential
- Territory Design without regard to Customer Type
- Territory Design without regard to Rep Capabilities
- Territory Design without regard to Salesforce Capacity
- Territory Design without regard to Market Movements
This list of common mistakes in territory design is not exhaustive. The key here is that a generic, “one size fits all” model just doesn’t cut it anymore. To win today, you need to consider multiple factors when designing your territories. For more information on territory design best practices, take a look at our SBI Q3 Research Report.
For an initial list of essential metrics needed to design an effective territory, use our Territory Design Approach Tool.
Need a territory design overhaul? Schedule a working session at SBI’s Studio.
Located in Dallas, TX, our facility offers state-of-the-art meeting rooms, lounge, full-service bar, and a studio used to tape our TV shows. SBI provides the location and facilitators, all at a compelling price point.
As a guest of The Studio, you’ll get unlimited access to SBI’s CEO, Partners, and a handpicked team of Sales Talent experts. Together we’ll focus on developing an action plan to optimize your Territory Design by getting a month of work done in just eight hours. It’s an amplified experience that you can only get in one place: The Studio. I hope you join us.