Sales Territories: How Are They Handled in Your Business?
Guest post by Andrew Lisa
Whether you sell beer, software, or roof shingles, you’re going to break down clients by demographics and geographical areas. Whether your reps are driving hundreds of miles to different hospitals in the open landscape of Montana, selling houses, or going from bar to bar in a tiny but packed district of Manhattan, putting the right reps in the right territory is the key to success. Follow this guide to figuring out the always-complicated process of managing sales territories. The same applies to the job hunt and entrepreneurship too.
Use Software
It is estimated that more than half of small businesses use nothing more than Excel spreadsheets to divvy up sales territories. Territory alignment software used to be way too expensive for most companies to afford – close to $6,000, according to Inc.com. Programs like GeoMetrx, Territory Mapper, and TerrAlign are within the reach of even modest business budgets. Just as it does with bookkeeping, accounting, and inventory management, territory mapping software makes the job more efficient, easier, and more profitable. There is simply no other tool that will help you collect data quicker and more accurately.
Divide Clients into Tiers
Organize clients into three tiers – labeled 1, 2, and 3 or A, B, and C – first being most reliable, second requiring some work, and the third being long shots or clients certain to require lots of work for little return. When a map of color-coded, numbered indicators is laid out, giving a clear picture of which geographic regions contain the most ones, twos or threes, it becomes infinitely more clear where to put your best resources and most talented sales reps.
No New Faces
Do not rotate reps between territories. Unless there is an emergency, a rep quits, or you’re bombarded with complaints, give a territory to a rep and keep him or her there. More than anything else – including even cost – clients value continuity and consistently. They do not want to meet new people, learn to deal with new people, and grow to trust new people. If they have to work with a new person, they’re much more likely to reevaluate if now is the time to just go with another firm altogether.
Review Periodically
Although continuity is king, it is imperative not to fall into a rut. The reason is that demographics change within geographic regions. The world is changing, whether or not your territory strategy is changing with it. This is where your software comes in. You must reevaluate – generally every one to three years – your territories and geographical boundaries not only as demographics shift, but as your goals and capabilities shift.
The sales game is competitive and challenging. It requires hustle, thick skin, and the ability to build trust between both the client and your employer. The concept of territories fits perfectly into that mold. Therefore, handling and managing your territories is the backbone of your operations. Get the right software, divide your clients into tiers, keep your reps in their own territories, and take a look periodically to make sure you’re on track.
Andrew Lisa is a freelance writer living in Los Angeles. He writes about small business management and sales strategies for a variety of clients and websites such as RobLawHomes.com.
Following Andrew’s advice will lead you to the Smooth Sale!
Read Addtional Strategies and Techniques:
Nice Girls DO Get the Sale: Relationship Building That Gets Results, Sourcebooks
HIRED! How to Use Sales Techniques to Sell Yourself On Interviews, Career Press
