Should you Increase the Size of Your Sales Territories?

At some point, almost every sales person tries to convince their sales manager to increase the size of their sales territory.

The request makes sense from their perspective. Shouldn’t a larger sales territory equate to greater sales opportunities and a bigger bonus?

Do not fall into this trap. A major benefit of sales territory management is the ability to focus and align resources, investments, and talent to maximize results for you and your customers.

Your sales territories should be just big enough to:

  • Truly Help Your Clients: Knowing your client’s priorities, preferences and habits allows you to help them succeed. An in-depth understanding of your local competition, marketplace, industry, and trends adds credibility. This takes time and commitment and cannot be spread over too many clients.

  • Decrease Sales Costs: Reduced travel time and expenses make a difference to the bottom line. More manageable territories also make everything (meetings, demos, lunches) easier and more frequent when you do not have to crisscross four area codes to meet a client.

  • Build Brand Recognition and Momentum: Consistently focusing on the same target clients allows you to build the relationships necessary and gain the insights required to be at the right place at the right time to add value and close the deal. Before adding to your sales territories, make sure that your reps have maxed out all of their target clients in their current territory. Could your rep really handle 50 more accounts?