The Fundamentals of Sales Territory Planning and Mapping

Sales territory planning is not a simple and easy job. But, it is an important aspect in creating effective strategies for your business. It needs thorough analysis of the sales potential of your business and the requirements it should have to accomplish your goals.  In sales territory planning, assigning a sales rep to territory with high sales volume is crucial. But, it should only require minimal resources to cover the entire territory. This is what a good sales territory map is all about.

It is important to strike a balance between sales coverage and cost of sales. It is helpful to visualize this by creating a sales territory map. The map will help in making you understand what areas have promising sales potential and the best ways to go to them with lowest expenditure. Mapping this in software with color coding feature will help you differentiate one territory from another. It will prevent you from overlooking the map and missing a feasible sales opportunity.

You can start mapping the territory by grouping the ZIP codes. This is considered the best practice in sales territory mapping because ZIP codes contain useful information about your potential customers. Others choose to group their area by industries or sales density but that can be tedious to undertake. So, it is recommended to stick with ZIP codes.

Sales territory mapping discloses information useful to your business that you might not have noticed otherwise. You can see territories with similar potential sales volumes but might entail different costs of sales. This will be your basis to decide on focusing more on the territory with lower cost if your business is a bit tight on the budget. Then, you can consider splitting the other territory to make it more manageable for sales reps and may reduce the cost of sales.

Sales territory planning allows you to determine the skills needed by your sales reps to cover the entire territory. This is the time when you can assess the skills of your sales reps and match them accordingly. In this process, you may need to reassign your sales reps to get better sales results.


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