Sales territory plays a crucial role in strengthening the sales of any company. It’s a crucial pillar in sales strategy. It has numerous benefits that include encouraging sales team morale, improving chances of achieving sales targets, and reaching a wide range of customer base.
Territory planning should be wisely and attentively made because a small wrong step can block the progress of the company. Territory planning should always be balanced and constant. Wrong planning can break the relationship with the customer and can also demoralise the salesperson.
What do you mean by sales territory?
Sales territory is the distribution of geographical area or customer group to the sales unit. A company allocates the market on the basis of area or customer category to different sales team. And every sales team is responsible for its zone and its targets.
Sales Territory Planning
Sales Territory Planning is very important since all sales activities depend on it. And to plan the sales territory following steps should be taken:
Assess Your Market
Sales leaders are required to analyse the market area in which the business will grow and accordingly divide the sales territories.
Evaluate your market demands and its climate and recognize the factors which make you distinct from others. All these factors help to set up compelling sales territories and drive to reduce costs and increase sales.
Judge Account Quality
When you decide upon a target market, sales leaders have to calculate the value of each account. The valuation of the account. the product or services offered by the or qualitative, depending on. For instance, a liquor company valued their accounts on the basis of net profits whereas a business that depends upon customer proposal is based on the referrals.
Every account has its own importance; you can segregate the sales territory according to it.
Judge Territory Quality
Let’s move to the next step – valuation of territory quality which depends upon the quality of account. But it also considered the different requirements and preferences of the business. Suppose your business sells its product to different industries; the territory can be divided on the basis of the industry that purchases the goods. Further, you can rank the territories as high, medium and low according to the business you earned.
Involve your sales team to get better results as they know more about the scenario than you. They give better knowledge and facts about the territory as they spend a whole day working on it. In this way, you can assign the task to boost the profits of the sales representatives.
Appraise the strength of the representative
Till now you assess your accounts and territories effectively. Now it’s time to assign a representative who has the necessary skills and skills to improve and expand each group of the accounts. The representative has the ability to assess the nature of every deal and take the necessary steps accordingly.
Learn how to Convince your Prospects
This stage is the most viable because without a representative all the planning will be insignificant. A sales representative is a person who can handle all deals in an effective manner. Also he could negotiate and encounter and settle enormous negotiations. Representatives can take all necessary steps to assure customers about good negotiations and administration.
Observe and Integrate
Sales leaders scrutinise the cost metrics, which enable them to focus on the inefficient aspects in planning. By comparing the targets with the actual counts, you can determine the feasibility of each representative of different territories.
Now, it is necessary to integrate the plan after observing it. Sales territory planning is important to improve your work performance, raise work satisfaction among the Sales team and develop brand reputation with your customers. Overall, it helps the organisation improve and earn high value and revenue, both.
Thus, an effective sales territory strategy helps companies compete in the market in the best way. If the targets are specified clearly and the sales team knows their responsibilities in advance to achieve his targets. It assists in controlling the costs and expenses and inspires the morale of the sales team.
All sales related strategies can only be implemented well if you have a proficient Sales team. But if you don’t have a sound Sales team, no strategy can work. No matter how hard you’ll work. In that case, hiring an experienced and expert marketing agency is always recommended. Here’re a few tips for choosing the perfect branding agency.