How do you allocate a sales territory?

The best way to start a sales territory plan is to first look at your customers, leads and prospects.

1. Define your market, analyze, and segment existing customers.
2. Conduct a SWOT analysis.
3. Set goals and create targets.
4. Develop strategies to accomplish your goals.
5. Review and track your results.

How do you assign a sales personnel to a territory?

The salespersons are assigned territories by the sales manager depending on the basis of sales. The geographical areas with high sales are assigned to the salesperson with experience, who can handle the workload. The new or less effective sales people are assigned the areas with less sales potential.

What are the primary basis for establishing sales territories?

The six basic reasons for establishing sales territories are (1) enhance market coverage, (2) keep selling costs at a minimum, (3) strengthen customer relations, (4) build a more effective sales force, (5) better evaluate the sales force, and (6) coordinate selling with other marketing functions.

How are sales territories and quotas assigned?

 Sales quotas are also assigned to individual salespeople over a particular time period and are used to plan, control and evaluate the selling activities of a company. Sales Territory Management  A sales territory comprises of a group of customers or a geographical area assigned to a sales unit.

Should sales reps have territories?

However, it’s important to design rep territories so they can generate enough business to hit sales quotas, while also managing existing client relationships within their assigned sales territories. Sales managers can ensure that reps are enabled for success by: Setting proper sales quotas.

What are the two types of sales territory?

1. Geographic location

• Country: Assigning sales reps to serve a country or group of countries.
• Region: Dividing a sales area into north, south, east and west.
• State: Making each state or groups of states into territories.
• Store radius: Assigning all customers within a certain distance from each store to its own territory.

Why should sales territories need to be set up?

It is very important to create sales territories that are balanced. Those responsible for the territories will seek out too few leads, identify too little prospects and spend too little time with customers because they are overworked. This leads to customers going to competitors and you losing sales.

How do you effectively manage your territory?

Best Practices for Sales Territory Management

1. Develop a visit rotation schedule.
2. Account for seasonal trends.
3. Optimize for long-term ROI.
4. Find new ways to divide your sales territories.
5. Leverage other customer-facing colleagues.
6. Track performance over time.

What is territory mapping?

Sales territory mapping is the process of defining the area, sales, and revenue that your reps are responsible for targeting. Businesses might allocate territories based on zip codes or drive time from a rep’s home base and manually document the plan by color coding or placing pins on a map.

How do you work your territory?

Six Keys to Manage Your Sales Territory More Effectively

1. Plot your time to reach a minimum 65\% Customer Contact benchmark.
2. Heat map your sales territory.
3. Organize and complete the paperwork in a timely manner.
4. Use your existing relationships to expand your pipeline within your territory.