To answer those questions, we built a Territory Evaluator. This downloadable tool helps you evaluate your new territory in relevant terms:

 

  • Selling time as required to meet quota
  • Account management time as required to maintain the business already established
  • Estimated revenue per hour as a result of your efforts

 

Why Territories Change

It is important to understand why sales management makes a territory change. It could be to accommodate shifting skills and performance. Perhaps it is to equalize the potential of territories across the entire team. Below is a list of the top 5 reasons territories are changed:

 

  1. Unbalanced patches of customers, suspects, spend potential and geography.
  2. New headcount additions are being made (or were recently made).
  3. The launch of a new sales strategy. (Ex. hunters vs. farmers, specialists vs. generalists)
  4. Past design methods were flawed. (Ex. they were based on historical sales performance. This instead of an evaluation of a combo of existing customers and prospects)
  5. The CRM system (such as Salesforce.com) was cleansed of bad data, improving management decisions.

 

territory blind spots  

 

Where a Sales Rep Should Focus

Whatever the reason, the end result needs to be reasonable. Fair and balanced territories have their obvious benefits. They allow for better customer coverage. Ideally they enable greater selling time and reduced travel. They provide the greatest potential for you to maximize your income.

 

But these are high level benefits that need to be translated into tangible terms. Typically a territory change is coupled with a change in quota. So as you are required to navigate a fresh landscape, new pressures are added. New blind spots are introduced. If you’re not careful, your cozy 40 hour work week can balloon to 70. If you don’t prioritize your approach, you’ll pull in the wrong deals. All this can happen if the right questions aren’t asked.

 

The Territory Evaluator provides a personalized view into the quality of your territory. It helps you focus on these three key areas for success:

 

  • Selling Time. This is not always a straightforward calculation. You need to understand your expected close rate. And know how many interactions are expected during each sales campaign. You can plug these variables into the Territory Evaluator and gain clarity.
  • Account Management Time. Preventing a mass exodus of customers needs to be front of mind. They may not be happy with the Sales Rep change. There may be upcoming contract renewal deadlines that open your base to the competition. The Evaluator helps organize these hidden challenges.
  • Estimated Revenue per Hour. Find out what the average deal size is in your new territory. This is a critical piece of information. It allows you to quantify the efforts required to be successful. You should know how this hourly rate compares to your previous territory.

 

Next Steps

Download the Territory Evaluator. It will help you cut through the high-level, corporate jargon. If you lack the required information, talk to your manager. It is critical that you understand the full potential of your new territory.

 

ABOUT THE AUTHOR

Dan Bernoske

Go-to Market Innovator
Learn more about Dan Bernoske >

Prior to SBI, Dan held business development, sales, and product management leadership positions at several start-up companies, developing Apple iOS platforms and E-Commerce-based social networks. Most notably, Dan was co-founder of Video Lantern, an online video advertising sales and operations firm. He is Six Sigma certified from GE.

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