Are
you getting the most out of your sales territories?
Every sales manager understands the upside of effective sales territory management—increased revenue due to maximum productivity from a high performing
field sales team. But how many fully understand what the downside can be when
territories are misaligned or even being re-aligned?
In
their periodic attempts to realign territories to keep up with market changes,
sales managers are faced with inevitable slowdowns. Reps make fewer calls as
their territory and their client and/or product mix change. If you figure one
less call per day for as long as it takes (say one month at the least) at a
cost of $100 per call, that’s $2,000 less revenue per rep. If you’ve got a team
of 100 reps, the cost to the company is now $200,000 for the month-long period
of territory shift.
Regular
tweaks to territories need to be made in order to stay competitive. Once you
know the cost of territory change, the secret is to make the changes with as
little disruption to productivity as possible.
