Sizing and Territory Design: Focus Drives Revenue Growth

Design territories for peak productivity and controlled cost of sales

I'm ready for revenue growthPoorly designed territories limit revenue generation and increase cost of sales – at the same time. 

Sales assignments typically come in two forms: named accounts or geographic territories. The approach to analyzing and designing the best territories should consider several important factors:

  1. Sales strategy: Is the goal to increase share among existing customers, acquire new customers, or both?
  2. Support roles: Gone are the days of the lone wolf field sales person. Today’s engagement models usually involve lead generation and qualifying resources, field and inside sales pairing, product and technical overly specialists, and customer success and renewal roles. The makeup of the “team” has direct influence on the territory design.
  3. Workload: Too often, sales people are given too much territory to cover. This often results in “drive-by selling”  – unfocused, reactive effort. Territories and account loads should be based on sales person workload estimates which account for the design of the sales team.

Case Study: Read how this $230 million/year business software and services company’s redesigned equitable territory maps and assignments for each segment promoted equal sales opportunity within the sales team.

Using analytics and benchmarking, sales leaders must regularly evaluate deployment decisions to drive results:

  • Well-balanced territories that yield greater productivity and cost savings
  • Workloads that balance hunting vs. prospecting
  • Accurate investments in both new and established markets

Optimally sized sales organizations and well-balanced territories can yield 10%-20% increases in sales productivity, and may even generate cost savings.

For sales leaders, territory design is a critical discipline to unlock productivity and manage cost of sales. Interested in learning more about the Alexander Group’s Sales Territory Practice? Contact us today.

Practice Leadership

Craig Ackerman

Craig Ackerman

Mike Burnett

Mike Burnett