All companies may have hundreds to thousands to millions of customers depending on the nature of the business. The more customers the business has, the more difficult it is to manage. Just imagine if your company sells to thousands or millions of prospective clients, how do you go about assigning a sales rep to handle a client? How do you monitor the sales assignments you make? How do you know that a specific sales rep is responsible for a specific client? It may be difficult to imagine but if you have a sales territory plan that gives you a visual background about it, the impossible way of managing your sales becomes possible.
It is a goal in every sales territory planning to divide the chunk of customers equally among sales reps. It is a good practice to let your sales reps have equal responsibilities and equal opportunities for success in sales volume. However, this is a difficult task because every territory has different population densities and demands. Mapping the geography out, and considering certain metrics such as ZIP codes and alignment index may be helpful in dividing territories with equal number of potential sales.
Aside from that, you want to have a sales territory plan that is divided in a way that every territory is serviced properly by a sales rep. Moreover, it is important to have a plan that is divided in a way that natural boundaries are used as boundaries of the territories. It is a waste of resources to send sales reps to clients who are over the mountain range or the river. It is best to separate two locations as two territories served by two sales reps if there is a natural boundary in between them.
Aligning territories is also essential because having a plan with territories that are not aligned properly is wasting important business resources. This can also be a cause for the business to lose profit. Using criteria such as sales, distances, customers, leads, and work responsibilities can prove useful in creating a more efficient and effective territory map.