It is a common practice to use digital mapping in sales territory planning. The use of mapping makes it easier to share results. It is also easier to update them according to the changing market. This also cuts down the time spent in mapping a territory. It is important in sales territory planning to choose the level of geographical division that will be used. The boundaries in every region should be detailed enough and should form a closed shape. There should be no overlaps or gaps in the mapping to have effective sales force territories.
The use of ZIP codes in mapping is a good basis for planning because these codes give complete inclusion in almost all locations. ZIP codes give a great advantage when used in sales territory planning. Use of ZIP codes is pivotal because they provide a granular platform to start the planning process. As you go further, the larger area is covered in the division of territories. ZIP codes also reflect the fluctuations in population size. This needs to be addressed because larger population size can result to higher sales volume potential. Therefore, this allows the business to assign a high-performing sales rep to that location or probably divided the area between two sales reps.
ZIP codes are also advantageous to be used in digital mapping because all residences and commercial establishments have one. It is easy to associate a ZIP code to map data and to possible sales. Sales for assignments can also be made easily with the use of ZIP codes in dividing territories. In many countries like US or UK, ZIP codes are already optimized in such a way that they can be easily contacted and accessed. This means that territories can be conveniently divided using natural boundaries such as mountain ranges, rivers, and forests. This makes it a lot easier to carry out sales territory planning in the in depth level. This mapping also allows multi-level hierarchies to be made. A good example for this is creating a tree for IMS structure in the pharmaceutical industry.
The use of ZIP codes in mapping and sales territory planning allows maximization of sales territories according to geography. This lets the business acquire the full potential of the market based on accessibility of the territories, coherence of locations, and population densities in adjacent locations.