Could Unfair Sales Territory Design Be Undermining Your Team’s Performance?

A Salesperson Trying to Find His Balance on a Tightrope of Downward Sales

The numbers keep going down. You need to do an all-out evaluation of what’s going wrong…and fast.

As you do, don’t neglect the possibility that unfair sales territory design could be the reason for poor performance. When there is inequitable distribution of customer workload and opportunity, productivity often suffers and turnover increases. Consider the ways sales territory design can negatively impact sales results. If poorly designed,

  • Some salespeople may not have enough good accounts to keep busy and others may neglect good opportunities because they are on overload.
  • Some salespeople will leave for lack of opportunity and others will earn more money than their value-add deserves.
  • True performance may be masked by non-aligned compensation programs. Hard workers in low-opportunity areas will be discouraged as low-performers benefit from an incentive plan that does not reflect effort and capabilities.

Sales territory management training experts recommend you re-evaluate your territory assignments at least every two years. Adapt to changes in the marketplace so your territory assignments are as fair as possible. This is the way to help your sales team meet customer needs, maximize opportunities, and reach team goals.