When Poor Sales Territory Design Could Cause Lost Revenue

A cartoon salesman cries as money flies away

You see your revenue falling. There could be any number of reasons. But as you explore the root causes of decreasing sales, don’t forget to look at what may be the real problem…poor sales territory design.

Few sales managers take a real course in sales territory management training…but they should. Learning by trial and error can be costly.  Here are two examples of how poorly designed and inequitable sales territory assignments can hurt business:
  1. Above average sales rep turnover for your industry. If sales rep retention is a problem affecting a specific territory, it could be that there is not sufficient opportunity for the assigned accounts. Especially high performing salespeople will be quickly discouraged. Try for a better balance so every rep has a more equitable chance to be successful. 
  2. Lowered sales rep productivity. Are accounts in one area being more than adequately covered while accounts in another are being neglected? You could be missing new prospects and diminishing returns from long-term customers. Take a look at your sales reps’ activities. It may be that you need to reassign them for better results.

Manage sales territories by evaluating sales data on a regular basis so you can make better use of your sales talent and close any gaps of coverage.