What is Territory Management?
To understand territory management, we should be clear about what is a territory in sales performance management. A territory is a region that is assigned to a sales team or individual salesperson. It includes both current and potential clients, allowing your sales representatives to concentrate on a particular market. Cities, regions, and countries are examples of typical sales territories. Setting up your territories, and sub-territories, building the territory hierarchy, and effectively allocating your sales teams and/or salespeople to them is the process of territory management. Territory Management is used for the following:
- Assigning sales representatives to territories and organizing the territories based on hierarchies
- Creating territory definitions based on rules or dimensions
- Assessing the assumptions made for territories using scenario-based modeling
- Providing a consolidated view of the territory data in reports
Benefits of Territory Management
Sales Management Association found that organizations that utilize territory planning software have a 20% increase in quota attainment than those that do not. Some of the benefits of Sales Territory Planning are:
- With a good Sales territory plan and management tool, the sales reps can concentrate on their main job of selling the products or services to their customers, rather than worry about admin tasks
- They get paid incentives and commissions on time and this keeps them motivated to make more sales
Better Rep Assignments
- With proper segmentation of the territories, the sales reps are assigned to the territories they have knowledge about, so that they do not have to spend time understanding the new segments and geographical sector
- They can directly start engaging with the customer without wasting time on the admin work
Improved Workload Balance
With proper planning, the territories are assigned to reps in such a way that there is no conflict in the segments and the sales rep can give their maximum efforts toward their assigned territory.
- With proper performance tracking of territories, the management can understand which territories are performing well and which are not
- This can help the management in rewarding the high-performing reps and motivating the reps that are not performing up to the required levels
Best Practices for Territory Management
- Segmentation – Identify who the customer for your product or service would be. Perform some market research to identify the clusters of ideal prospective customers and understand the market needs. Segment the territories based on the results of the research
- Territory Definition – Territories should be defined based on various factors such as location, sales potential, population, etc. Sub-territories can be defined depending on the size of the territory
- Assigning Reps to Territories – Based on historical data for territory sales potential and rep capabilities, the reps can be assigned to territories in a way so that the sales from the territory can be maximized.
- Continuous Performance tracking – The work does not end after the territories are defined and reps are assigned. The territories should be continuously assessed and monitored for their performance. There could be territories that are not performing well, or there could be promotions or transfers of a sales rep on a territory. Those territories that are not performing well can be redefined as per the requirements.
How Delbridge Can Help
By choosing Delbridge as your Xactly territory management implementation partner, you can trust in a successful deployment, efficient use, and improved results from your market targeting and sales performance management processes. We offer comprehensive support for your Xactly territory management implementation with the following services:
- Requirements Analysis: Delbridge will work with your organization to understand your territory management needs and design a customized solution using Xactly.
- Implementation: Our team of experts will ensure a smooth and efficient implementation of Xactly’s territory management capabilities, taking into account your specific requirements and business processes.
- Training and Onboarding: Delbridge will train and onboard your team to be experts in using Xactly’s territory management features, ensuring they are fully equipped to maximize its potential.
- Best Practices: We will share best practices in territory management using Xactly, helping you optimize your processes and improve performance.
- Ongoing Support: Delbridge will provide ongoing support and maintenance, ensuring your Xactly implementation continues to meet your territory management needs.