Controlling Sales Territory

Controlling the Sales TerritoryMeans Controlling the RevenuePresented by

Louis Feuer, MA, MSWwww.DynamicSeminars.comHeartland Conference 2008

The Sales Territory

It’s where all the customers live and/or work All corners need to be checked and

monitored. Territories change and new people move in

and move out. Failing to research the territories allows new

opportunities for the competition.

Why Bother with Territories?

Have you seen the price of gas lately? Have you understood the impact of

competitive bidding? Have you calculated the total cost of your

sales person? Do you understand that customers want

stability in their marketplace?

Territories allow the sales effort structure and accountability.

They help combat the competition. They help maintain relationships. They can also create a spirit of competition

between sales people.

Your Territory is Your Store

You must work every aspect of the territory. You must cultivate it with patience and

persistence. May need extra feeding and nurturing. Creates a sense of entrepreneurial spirit. And it keeps sales people focused on what

“fields” they need to grow.

Sales People and Territories

Every sales person wants to work a territory that generates revenue.

Every sales person wants a territory that helps them generate a decent living.

Sales people do not want to spend the entire day behind the wheel of a car.

Some sales people may have more to do than others. Would a small change allow for more productivity?

Territory changes can grow revenues without adding additional expenses.

The result could be a more productive and happy sales person leading to increased revenues for everyone.

What do referral sources want? They want the same salesperson every

week.

They realize it means stability for the company.

They want to be able to count on the same person.

Why Would You Change Reps Working in a Territory? New staff.

Problems with the account.

Keep in mind, any change presents a risk! The risk is worth it.

What is the Effect of Shifting Territories

Can cause behind the scenes jealousies.

Effect the referral source and sales rep. relationships.

Sales territory wars within your organization.

Only change the territory when . . .

There is good sound sales planning.

When you have included those who work the territories in your planning and thinking as you decide to change the boundaries.

Territories Under the Microscope You can increase sales opportunities.

Decrease costly travel.

Improve sales morale.

Realignment Can Help

Reach new customers.

Expand visibility.

Lower cost of doing business.

When Should You Consider Territory Realignment

If you notice that some territories, i.e. zip codes are not being served.

Are there too many large facilities in one territory? Is the pie being split appropriately?

When you have added a sales person to you staff.

Do not give the scraps and impossible accounts

to the new sales person.

Everyone needs some satisfaction in their work.

Can your transfer an account over time? What would a transition look like.

When you have reviewed past business revenues and potential customer opportunities.

New products added to your product line may

require a realignment.

New facilities, i.e. clinics, rehab centers may

need more attention.

The Realignment Process

Look at a list of your customer locations, sales force commissions and markets you wish to target.

Are commissions particularly low for a particular sales person?

Does one sales person have a short list of accounts to see?

Look at the number of prospects in each territory.

Look to develop an equitable distribution of the workforce.

What is the travel time for each sales person?

Determine the number of territories you need.

Take out a map and take a good look.

Look at the geographic size.

Number of physicians, hospitals, clinics in the areas you want to cover.

The more you know about the territory the more effective you will be in covering it all.

The Sales Person’s Work

They do not cover the territory by making just one call a month to an account

They are their working to build relationships.

Several calls may be needed to get the first order and more calls to keep the account.

The Sales Manager’s Role

Insure everyone contributes to the account prospect list.

Make sure sales people know how the territory was structured.

Make sure sales people do not have too much to do that forces them to leave accounts unvisited.

Taking away a potential key account from one sales person must be considered!

Contact Me

Louis@DynamicSeminars.com

954-435-8182

www.DynamicSeminars.com