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Sales Territory Design/ Realignment
Sales Territory Design for an existing business really entails Territory Realignment. Companies today often have sales territories which
have evolved over time due to changes in company size through mergers or acquisitions, or market changes.
In many cases companies have not invested sufficient time or resources to reevaluate their territory coverage model or strategy and what once
made sense has devolved into a patchwork of territories over time.
Problems Caused by Imbalanced Territories:
- Rewarding territory potential not the sales person = morale problems
- Too many resources focused on low potential customers = wasted resources
- Too few resources focused on high potential customers = lost opportunities
Sales territory realignment can be a daunting task rife with controversy. On the one hand sales management stands to gain better coverage and
a level playing field for sales people not to mention increase revenue and on the other temporary disruption of the sales team. We believe when sales
territory realignment is done effectively the benefits far outweigh the associated costs.
Benefits of Territory Alignment:
- Equal sales opportunities for sales people
- Enhanced customer coverage and service
- Increased revenue
- Fair and equitable compensation and rewards
- Lower travel expenses
- Some reps may leave (primarily those used to coasting)
- Balanced workload for sales people
Risks Involved:
- Some customers may fall between cracks during transition
- Some sales people may leave
- Disruption in sales organization
Our experience includes helping companies realign sales territories for a variety of reasons including the need to integrate additional
business units or organizations due to mergers or acquisitions.
Contact Us
To learn more about how we can help you increase your return on
your investment in your sales organization.
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