Is your resolution this year to better understand your customers and enhance your sales output? Then why not start by optimizing your field sales and territory alignment? Building on existing CRM systems, territory optimization enables companies to map out and measure opportunities for sales output. Read part 2 of our Sales Excellence Kit to find out how to effectively and efficiently allocate resources. And put your sales team on the path to success.
Previously the domain of very large companies, increased data processing and computing capabilities are now available to companies of all sizes and sectors. Today, small and mid-range firms can harness state-of-the-art technologies to obtain deep insights into their markets and gain a strategic advantage. There has been no better time to build your territory optimization capabilities.
Add an extra layer of opportunity to your sales force
Is your sales team failing to hit targets in a certain region? Or, are they meeting targets but, perhaps, there is room to go further? Then it is time to obtain valuable insights from the field and identify the right parameters to reflect your business goals. By effectively sifting through the numbers and identifying opportunities for growth, you can understand the powerful story behind your sales activities .
“Territory optimization tells the powerful story behind sales”
Furthermore, field sales and territory optimization gives you a better understanding of your target customers and their behaviors.
Manual efforts vs. data-driven territories
Manual efforts are usually built around past success and large areas of opportunity, but they are limited to the bias of the map maker. Difficulties also arise when multiple inputs come into play. In contrast, data-driven territories account for roadways, natural boundaries, and other efficiency barriers, and can integrate many inputs during calculation. They provide nation-wide efficient market management and ensure sales territories are in line with the local market potential. With data-driven territory optimization, there is less of a “human factor” of reassignments and relationships – that’s true. But you avoid the "each a kingdom of its own" attitude that is often present with manually drawn-up territories.
Why choose data-driven territory design?
- Improve customer coverage
A rep with too much time on their hands will waste a lot of it on unprofitable customers and dead opportunities. And an overworked rep with not enough hours in the day is no use to anyone either. They just end up spreading their time so thinly that valuable customers are neglected and exciting leads get missed. With territory optimization, valuable accounts from the territory with the high workload are reassigned to the territory with excess capacity. Doesn’t sound like rocket science. But when you decide to use data to reexamine your sales territory mapping, the room for improved productivity comes to light.
- Motivate your reps When optimizing territory, the customer is king, but don’t forget that the salesperson is your knight. Badly planned sales territories lower morale. When sales reps feel that territories are unfairly assigned, they have less drive to close deals. The customer will also have a negative experience with a demotivated sales rep. Moreover, distinct sales territories ensure incentives reward actual sales performance and not just the “luck” of being in a high-potential territory. With data-driven territories you remove any suspicion of favoritism within teams and keep the focus on selling.
- Boost profits
Data-driven territory optimization can reduce travel and resource costs, but it also has a significant impact on the topline. The optimized resource allocation and improved customer coverage translates into increased sales growth and ultimately profits. By using state-of-the-art technologies to reexamine your territories, you can build a sales force that functions as a powerful growth engine for your business. And substantially improves your profitability.
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