Sales territory design - aligning to your strategy

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Sales Territory Design should support your sales strategy. In this presentation by Sales benchmark Index, you will learn the 3 goals of territory design and how to choose the one that best supports your strategy.

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Sales territory design - aligning to your strategy

  1. 1. Sales Territory Design: Aligning to your Strategy<br />Are you ready to be world Class?<br />
  2. 2. Best Practice<br />Territory Design should support and align with your sales strategy<br />Strategy scenarios<br />Integrate acquired company’s sales force<br />Achieve cost of sales reduction <br />Segment sales force for focused selling into key markets<br />Balance sales coverage for expanding and contracting markets <br />
  3. 3. Key Inputs into Territory Design<br /><ul><li>Market Potential
  4. 4. Assessed through data analysis on the universe of prospects and accounts who can purchase your products/services
  5. 5. Sales Workload
  6. 6. Determined through the use of activity models and the consideration of time/cost/resource allocations</li></li></ul><li>Territory Design Process<br />This presentation is focused on concepts that support steps 1-3 in the process. Namely:<br /><ul><li>Territory design goals
  7. 7. Data analysis approaches</li></ul>Territory Design Process<br />
  8. 8. Territory Design Goals<br />Optimize results by optimizing for one of three common goals:<br />Focused Account Consolidation (Customer driven)<br />Workload Leveling (Activity driven)<br />Territory Compression (Cost driven)<br />
  9. 9. #1 Focused Account Consolidation <br />Main driver - need greater effectiveness in specific accounts or market segments that contain the best “opportunity”. <br />Benefits:<br /><ul><li>Increased average transaction size
  10. 10. Increased conversion rate
  11. 11. Increased upsell/cross sell transactions
  12. 12. Increased share of wallet
  13. 13. Increased new customer acquisition
  14. 14. Protected relationships with high value customers</li></li></ul><li>#2 Workload Leveling<br />Main driver – need greater effectiveness by redefining territories to eliminate imbalances in account and opportunity distribution. <br />Benefits:<br /><ul><li>Balanced performance across sales territories
  15. 15. Increased average transaction size
  16. 16. Increased number of deals per period
  17. 17. Greater quota attainment
  18. 18. More consistent market penetration rates</li></li></ul><li>#3 Territory Compression<br />Main driver - need for greater cost efficiency by redefining territories to be geographically dense. <br />Benefits:<br /><ul><li>Lower travel expense
  19. 19. Increased selling time
  20. 20. Lower cost of sale
  21. 21. Higher activity rates</li></li></ul><li>Data Analysis Approaches<br />Data analysis focuses on one of the following four approaches: <br />Named Account Approach<br />Industry Approach<br />Sales Frontier Approach<br />Metro Compression Approach<br />
  22. 22. #1 Named Account Data Analysis<br /><ul><li>Focus on high value targets only (named accounts) for your TD effort.
  23. 23. Typically used in support of the Focused Account Consolidation goal
  24. 24. Fully capture all current spend, future potential and workload by named account</li></li></ul><li>#2 Industry Data Analysis<br /><ul><li>Determine the ideal customer profile in one or more key industry verticals that have a high propensity to buy your product
  25. 25. Limit the future territories to the key industry verticals
  26. 26. Fully capture all current spend, future potential and workload by account in key verticals</li></li></ul><li>#3 Sales Frontier Data Analysis<br /><ul><li>Analyze territories for potential and chart corresponding performance on a graph.
  27. 27. The outer frontier of performance for similar territories sets the bar for territory definition.
  28. 28. Assumes peak performance is possible given a certain territory potential and other factors are responsible for sub-peak performance.</li></li></ul><li>#4 Metro Compression Data Analysis<br /><ul><li>Optimize territories around dense metro cores
  29. 29. Largest concentration of target accounts exists in the smallest geographical area
  30. 30. Plan for accounts outside of major metro areas with indirect channels or inside sales
  31. 31. Typically used to support cost reduction in Territory Compression goal</li></li></ul><li>Territory Design Planning<br /><ul><li>Which of the 3 TD goals best supports your sales strategy next year?</li></ul>Focused Account Consolidation (Customer driven)<br />Workload Leveling (Activity driven)<br />Territory Compression (Cost driven)<br /><ul><li>For a given data analysis approach, do you have the data you need?
  32. 32. Do you have in-house talent to perform the analysis?</li></li></ul><li>Learn More<br />Contact us to hear the rest of the story...<br />Email - info@salesbenchmarkindex.com<br />Phone - 1-888-556-7338<br />Web: http://www.salesbenchmarkindex.com/<br />

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