The depth of review and degree of change typically depends upon forecasted market conditions, last year’s performance, competitive pressures, sales force attrition, and the company’s overall sales and marketing strategies.
Regardless of the timing or reason, the goal of sales territory realignment is to maintain and increase revenue, mitigate missed target customer opportunities, and improve sales force productivity.
Clients typically rethink their sales territory strategies when faced with any of the below situations:
- Big Changes: To succeed, your sales force and your sales territory plans must match the company’s business strategy, sales strategy, sales capabilities, brand, messaging, value proposition, and product/solution sets. Any shift in direction typically dictates realignment of your sales territory management approach.
- Fluctuating Players, Plans, or Roles: New or changed sales team members, roles or compensation plans due to restructuring, mergers, acquisitions, or partnerships create fertile ground to review your sales territory strategy.
- Backward vs. Forward View: If you base your sales territories and targets solely on past performance rather than a combination of performance and potential you are most likely sub optimizing your sales revenue potential.