Territory Planning

Q: What factors should be considered in territory planning?

Market potential, geographic location, customer density, industry verticals, existing customer base, sales rep skills and experience, and travel requirements.

Q: How can sales teams implement effective territory planning?

Sales teams can implement effective territory planning by using data and analytics to inform decisions, setting clear goals and criteria for territories, regularly reviewing and adjusting plans, and leveraging CRM tools to manage territories efficiently.

Share:

Territory planning is a process that organizes and allocates sales resources across different geographic territories or market segments to maximize efficiency, coverage, and sales performance. It’s a must-do for all sales teams, whether they consist of two people or two dozen.

Territory planning can help to:

Improve productivity by narrowing down rep focus areas for better account planning
Improve lead management flow
Streamline cross-functional alignment across different revenue teams
Manage territory and account reassignments as sales teams scale
Optimize hiring and focus resources on the right areas

The goal of territory planning isn’t just to assign sales reps to different regions but to also align sales efforts with market opportunities. As such, this involves setting clear objectives for each territory, such as revenue targets, customer acquisition goals, or market penetration rates.

Territory Planning Example — Source: SmartSheet

Territory Planning in 5 Minutes:

Territory Planning

What is territory planning?

Territory planning involves dividing a market into manageable segments or regions and assigning sales representatives to cover these areas. It aims to optimize sales coverage, balance workloads, and maximize sales opportunities.

What factors should be considered in territory planning?

How can sales teams implement effective territory planning?