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Territory Design Webinar - Instant Improvements for Segmenting Your Accounts
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Territory Design Webinar - Instant Improvements for Segmenting Your Accounts

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Sales Benchmark Index's Bryce Record webinar on how best-in-class sales forces are segmenting their accounts to determine the real potential. Learn how to find hidden revenue opportunities, rank your ...

Sales Benchmark Index's Bryce Record webinar on how best-in-class sales forces are segmenting their accounts to determine the real potential. Learn how to find hidden revenue opportunities, rank your accounts based on potential and balance territories.

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  • Excellent overview and great process to manage territory design. Key to successful implementation of this model is the quality of customer segmentation data, understanding of customer sale opportunity and velocity life cycle and skill sets of the rep and their ability to be to productive.
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  • Step 1 – Baseline Current PerformanceAnalyze existing pipeline/forecastStep 2 – Analyze Existing Customer SpendSegment existing customer data by (use correlation analysis to determine applicability of each dimension)# of Subscribers# of EmployeesRevenue SizeUse historical customer billings to analyze spend by segmentDetermine appropriate “frontier” for existing customer spend by segmentStep 3 – Determine Market PotentialSegment prospect data by:# of Subscribers# of EmployeesRevenue SizeApply existing customer spend “frontier” to prospect segments to determine Market PotentialStep 4 - Map Prospect/Customer Data to TerritoriesGroup Accounts by Segment# of Subscribers# of EmployeesRevenue SizeAssign by Account Location (HQ location)Evaluate Existing Customers By Territory To Determine PenetrationEvaluate Pipeline by Territory To Determine PenetrationStep 5 - Produce TerritoriesProspect/Customer PotentialWorkload RequiredNumber of Prospect/Customer AccountsStep 6 - Review and Refine AssignmentSales Management ReviewAccount PrioritizationStep 7 – Implement Sales Performance ManagementTerritory Level Goals
  • Regression analysis can help you forecast market potential for the salesforce.
  • Note to Presenters: For Phase 3 – provide a slide that lists all the Sales-generated Analysis spreadsheets, any Sales-created courseware, any Sales-created Job Aids, and any Sales-created Change Management tools and content. Them, for each item on the list, include a snapshot of the artifact and use callout bubbles super-imposed over the snapshot image to indicate your commentary. Also, show the mid-Project review that was conducted and the results.

Territory Design Webinar - Instant Improvements for Segmenting Your Accounts Territory Design Webinar - Instant Improvements for Segmenting Your Accounts Presentation Transcript

  • December 15, 2011
  • Logistics for today’s call…. All attendee’s will be on “silent” mode during the presentation. Please utilize the “Questions” feature to ask questions; simply type in your question and press enter. At the conclusion of the presentation, the moderator will facilitate the “Question & Answer” session utilizing the “Questions” feature.
  • Sales Benchmark Index will….  Send a copy of the presentation to you  Additional questions can be sent directly to: Bryce.Record@salesbenchmarkindex.comJoin us for our next Webinar….  Filling Open Reqs with Top Talent Fast – Recruiting, Selecting, and Ramping Sales Leaders  January 12, 2012  1:00 p.m. Central  30 minutes  Register at http://www.salesbenchmarkindex.com/
  • Bryce RecordBrief Bio  Sr. Consultant at Sales Benchmark Index  Mgr of Sales Operations and Analysis at Corporate Express/Staples  Mgr of Sales Pricing Operations at The TriZetto Group  12 years of B2B sales experience, both field and corporate
  • OverviewQuestions you need to answer Is your existing customer account base segmented? How can you determine true territory potential? Are your territories optimized and balanced? Are territories aligned with individual rep targets or quotas? Does your CRM capture your territory potential, preserving key institutional market knowledge when reps leave?
  • Territory Optimization Goal  Balance work load  Spread Prospects, Opportunities and Customers evenly  Improve forecast accuracy  Improve win rates  Align sales capacity with market potential
  • Territory Design Process Step 2 Step 4 Step 3 Step 6 Step 1 Analyze Map Prospect Step 5 Determine Review and Baseline Existing / Customer Produce Market RefineCurrent Perf Customer Data to Territories Potential Assignment Spend Territories Objective Establish a sales territory design that optimizes and aligns sales capacity with market potential
  • Step 1 – Baseline Current Performance Best Practice to analyze and understand by Territory/Rep: 1. Win Rate – Understand and measure this in the future 2. # of Opportunities 3. Pipeline Revenue Forecasted Understand Quota Attainment impact on rep by rep basis Pipeline ($ Forecasted Account Region Account Executive # of Opportunities FY11 Quota Gap ($) Gap (%) Millions) Pipeline Revenue Asia Pacific Rep 1 11 $41.0 $13.1 $13.5 -$0.4 -3% CALA Rep 2 6 $11.1 $3.5 $1.3 $2.2 172% Rep 3 27 $37.8 $12.1 $39.0 -$26.9 -69% Rep 4 7 $46.0 $14.7 $10.4 $4.3 42% Rep 5 11 $24.5 $7.8 $10.4 -$2.6 -25% Europe Rep 6 9 $18.9 $6.1 $7.8 -$1.7 -22% India Rep 7 7 $16.4 $5.3 $13.0 -$7.7 -60% Rep 8 17 $19.3 $6.2 $5.0 $1.2 23% Rep 9 20 $41.8 $13.4 $52.0 -$38.6 -74% Rep 10 14 $65.9 $21.1 $20.0 $1.1 5% Middle East/Africa Rep 11 7 $18.9 $6.0 $10.0 -$4.0 -40% Rep 12 3 $11.3 $3.6 $12.0 -$8.4 -70% North America Rep 13 10 $5.2 $1.7 $7.8 -$6.1 -79% Rep 14 19 $16.7 $5.4 $14.3 -$8.9 -63% Rep 15 12 $14.5 $4.6 $7.8 -$3.2 -41% Rep 16 3 $4.7 $1.5 $11.0 -$9.5 -86% Rep 17 10 $18.9 $6.0 $11.0 -$5.0 -45% Key Account Rep 18 2 $1.5 $0.5 $3.9 -$3.4 -87% Grand Total 195 $391.8 $125.4 $325.3 -$199.9 -61%
  • Step 2 – Understand Spend by Customer Significant change in Median Customer Spend at the 1,000 employee threshold and again at 2,000 employees (1) Total Sales (USD) Captures multi-year customer spend
  • Phase 3 – Prospect DB – Build Steps Evaluate Existing Customer Spend Cut by multiple level and layers 1. Revenue 2. Industry 3. Geography 4. Number of Employees 5. Number of Locations Determine what “Drives” the spend. As you review data, ask yourself which of the firmographic elements above show a high affinity towards higher spend
  • Step 3 – Build and Forecast Prospect Potential DB  Prospects included based on: # of Prospects x Customer Spend = Territory Potential
  • Step 3a – Forecast Spend Potential Evaluate customer potential in relation to Total Prospect Employees
  • Step 3b – Forecast Spend Potential Future iterations should include added precision of: Potential spend by Revenue
  • Step 3c – Forecast Spend Potential  Future iterations should include added precision of: Potential spend by # of Subscribers by Operator by Country Example of Brazil
  • Phase 3d – Final Forecast to Predict Potential Annua l N umbe r of Fore ca ste d Compa ny (Prospe ct) R e v e mploye e s Custome r Size Bucke t Sa le s Amp Group Holdings Limited $ 963 2,014 >=2,000 Empl $ 587,193 Pgg Wrightson Limited $ 954 1,995 >= 1,500 and <2,000 Empl $ 277,170 Goodyear Tyres Pty Ltd $ 924 1,937 >= 1,500 and <2,000 Empl $ 277,170 Dp World Holdings (Australia) Limited $ 880 1,852 >= 1,500 and <2,000 Empl $ 277,170 Tbp Group Pty Ltd $ 872 1,836 >= 1,500 and <2,000 Empl $ 277,170 Bandelle Pty Limited $ 872 1,836 >= 1,500 and <2,000 Empl $ 277,170 Suncorp-Metway Ltd $ 8,592 16,953 >=2,000 Empl $ 587,193 Manningtree Investments Pty Limited59 $ 8 1,811 >= 1,500 and <2,000 Empl $ 277,170 Input data to regression. Use if R- Square is >65% How to read a regression equation, then use formula to predict sales
  • Step 3e – Peak Performance Replication Customer Employees vs. Customer Spend 85960 80th Percentile 34726 14900 Frontier 8563 5928 3969 2900 Customer Employees 2000 1600 1135 790 550 Stretch Frontier 403 308 244 200 130 90 63 40 20 10 $- $50,000 $100,000 $150,000 $200,000 $250,000 Annual Customer Spend Total Employees Linear ( Total Employees )
  • Step 4 – Map information to territories Territory Pot = Existing Customer Base + Pipeline + Prospects Overlay 3 Components and remove duplicates Territory Size # of # of # Total Territory Territory Rep ($M Potential Opportunities Prospects Customers (# of accounts) Spend) Terr #1, N. John Smith 71 432 12 515 $192.0 America Produce Territories with concise geographic boundaries:
  • Step 4a – Produce Balance Territories
  • Phase 4b: Optimizing Territories 141 customers selected (Blue Zips highlighted) Geographic Analysis shows that 141 customer are in targeted area. Note that you can change Territory boundaries by dragging and dropping.
  • Step 5 – 6: Produce and Refine Territories  Understand Potential Distribution  Prioritize Accounts in each Territory  Best Practice: Assure reps with largest work capacity and historical win rate get largest Territorial Patch  Know Prospect density Heat Map Identifying Opportunities + Prospects by Geography
  • Input to: Territory Sizing Calculator Territory design calculator Data Assumption
  • Sales Territory Design Questions1. Have you segmented your existing customer base?2. Do you understand what drives customer spend?3. Have you used customer spend knowledge to flesh out market potential?4. Does your knowledge of the above impact forecasting accuracy?5. Are your territories balanced?
  • Further interest…. Sign-up for a free sales methodology planning consultation by: E-mailing info@salesbenchmarkindex.com  Additional questions can be sent directly to: Bryce.Record@salesbenchmarkindex.comJoin us for our next Webinar…. Filling Open Reqs with Top Talent Fast – Recruiting, Selecting, and Ramping Sales Leaders – RSVP Here  Thursday, January 12th , 2012  1:00 p.m. Central  30 minutes  Register at http://www.salesbenchmarkindex.com Thank-You for attending…