SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates - 1 -
Optimizing Market Coverage
to Drive Organic Growth
Marshall Solem
Principal
ZS Associates
Scott Sims
Principal
ZS Associates
15–17 September, Atlanta, Georgia
SMA Annual Sales Force
Productivity Conference
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates - 2 -
Marshall Solem
Principal
ZS Associates
Scott Sims
Principal
ZS Associates
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Today’s Objectives
- 3 -
In this session, you will:
Learn more about your peers
and hear their viewpoints
Share best practices on customer
segmentation, as well as sales force
sizing, structure and deployment (in an
effort to maximize market coverage)
Make ideas more relevant through
exercises and cases
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
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SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
- 5 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
ZS Associates is a global leader in sales and marketing
>30 year legacy
3,000 professionals providing global service
from 21 offices
– Largest Sales & Marketing consulting firm in the world
Worked with 1,000 companies in 70 countries
and 30 industries
Tight links to leading academics
- 6 -
BARCELONA • BOSTON • CHICAGO • EVANSTON • FRANKFURT • LONDON • LOS ANGELES • MILAN • NEW DELHI • NEW YORK • PARIS
• PHILADELPHIA • PRINCETON • PUNE • SAN DIEGO • SAN FRANCISCO • SAO PAULO • SHANGHAI • TOKYO • TORONTO • ZURICH
Introduction
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
ZS’s focus on sales and marketing issues, combined with a
complete and integrated range of services, is unique to the market
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Introduction
Strategy & Planning
Marketing
Operations & Technology
Sales
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Highly effective sales organizations are achieved through a clear
growth strategy and aligned capabilities
- 8 -
Introduction
Market Insight Go-To-Market Strategy Operational Excellence
Customer
Insight
Competitor
Insight
Market
Environment
Segmentation & Growth Strategy
Sales
Force Structure
Customer
Engagement
Process
Value
Proposition
Strategy
Sales
Resources
Sizing
Territories
Account Targeting
Territory & Pipeline Mgt
Culture
Competency Model
Hiring
Training & Coaching
Performance Measures
Incentives & Rewards
Performance Reviews
Sales Process & Decision Support Tools
Knowledge,
Skills &
Behaviors
Motivation
Tools
Marketing
Programs
Marketing Mix
Demand Generation
Lead Nurturing
Sales Force & Partner Enablement
Community Building
Operations
(Sales,
Marketing,
Channels)
Data & List Management
Sales Admin
In-line Forecasting
Reporting
Analytics
Agency Management
Platforms & Systems Management
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
- 9 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Even when good
targeting data does not
exist, applying rigorous
heuristics or using
surrogates can have
a significant impact
on effectiveness
How much money are you leaving on the table?
- 10 -
Perfect Targeting (100% targeting effectiveness)
Random Targeting (0% targeting effectiveness)
Opportunity
100% 80% 60% 40% 20%
80%
100%
0%
20%
40%
60%
% P
ote
nti
al
0%
% Accounts (Reach)
% of Accounts Reached
20% 40% 60% 80% 100%
Cu
rre
nt
Eff
ec
tive
nes
s 20% 100% 55% 32% 14% 0%
40% 60% 37% 22% 10% 0%
60% 33% 22% 14% 7% 0%
80% 14% 10% 6% 3% 0%
100% 0% 0% 0% 0% 0%
Percent productivity improvement possible (using typical potential concentration)
Segmentation
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Two common dimensions for segmentation are overall sales
potential and current penetration (i.e. share of wallet)
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Current Penetration Low High
Hig
h
Lo
w
Sa
les P
ote
ntia
l
Segmentation
Account Segmentation Strategy
How big is the account? How
much could this customer add to
our top/bottom line over time?
How much share of wallet do we possess?
Where are we focusing our efforts? What
customers are most important to us?
Tier 3 Tier 1
Tier 4 Tier 2
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
An effective segmentation should provide strong strategic
guidance on both where to play, and how to win
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How to Win Where to Play
Segmentation
Understand whom to target in the
marketplace based on customer
potential, behavior, and motivations
Identify key tactics that should be
implemented in each segment based
on their specific drivers & barriers
Industry
Ma
rke
t Po
ten
tial
Strategic
Transactional
Str
ate
gic
Im
po
rta
nce
A
A
C
Segment
Tactics
Tactics
Tactics
Execution Objective
Convince
Make Aware
Protect
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
How do you currently segment your customers?
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Segmentation
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Strategy Formulation
Segmentation serves as
the foundation for strategy
development to effectively
identify and win key customers
Execution
Segmentation drives tactical
planning and execution based
on a rich understanding
of customer needs and
decision drivers
Monitoring
Segmentation focuses
performance measurement on
the most relevant customer
factors, leading to more rapid
and focused market response
Segmentation provides benefits to the organization across each
major stage in the sales and marketing process
The Benefits of Segmentation
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Segmentation
Enhanced profitability through focus
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
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SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
There are three key aspects of sales force structure
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Structure
Multiple dimensions to decide
Positions Reporting Relationships
Roles & Responsibilities
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
There are many ways to design sales roles/positions
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Structure
Many ways to organize
Geography Activity
Product/ Service
Primary Interaction Venue
Account Type
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
A schematic can help clarify sales rep roles
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Structure
Sales Force Structure
Segment 2
Segment 3
Segment 4
Product A Product B Product C
Segment 1
Inside Sales
Products B&C Field Reps
Key Account Managers
Associate Field Reps
Products
Customers
Product A
Field Rep
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Case example: Fortune 200 capital equipment & financing company
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Strategic Large Medium Small
Direct
Small
Indirect
Overall Account
Planning
Local Facility
Planning
Functional
Area Planning
Opportunity
Identification
Solution
Development
Quotation,
Neg, Closing
Solution
Implementation
Account
Executive
AM PSS A
ccount
Executive
AM PSS AM PSS
Tele
PSS VAR
Product Sales Specialists
(6 types, territory aligned)
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
The range and diversity of structure options currently in use
is quite broad as many sales forces employ multiple roles
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Complex Solution Selling Ability Low High
Hig
h
Lo
w
Cost
GAM
KAM /
SAM
Field
Sales
Inside
Sales
GAM: Global Account Management | SAM: Strategic Account Management | KAM: Key Account Management
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
The range and diversity of structure options currently in use
is quite broad as many sales forces employ multiple roles
- 21 -
Complex Solution Selling Ability Low High
Hig
h
Lo
w
Cost
GAM
KAM /
SAM
Field
Sales
Inside
Sales
GAM: Global Account Management | SAM: Strategic Account Management | KAM: Key Account Management
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Historically, inside sales has been successful in situations of lower
buyer risk, and low buying process and solution complexity
Structure
Buying Process & Solution Complexity Low High
Hig
h
Lo
w
Buyer
Ris
k
Drivers
Technology
comfortable buyers
Low cost-per-contact
Scalability
Specialization with
low efficiency loss
24/7, rapid response
Blurring lines with field
sales (e.g., intimacy of live
video)
Increasing
inside sales
sophistication
Inside sales
sweet-spot
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SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Inside sales is a growing investment area for many organizations
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2011 Change in Inside
Sales Force Size
4%
25%
27%
19%
25%
Decrease
Increase
>20%
Increase
11% to 20% Increase
1% to 10%
No
Change
Source: 2011 Change in Sales Force Size – CSO Insights Source: 2009-2011 Job Growth – Simply Hired
2009 – 2011 Job Growth
Lead Generation
Jobs
Inside Sales
Jobs
Up
124%
Up
59%
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Inside sales is a growing investment area for many organizations
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Sales Department Breakdown
49.30%
48.20% 47.30%
50.70%
51.80% 52.70%
44%
45%
46%
47%
48%
49%
50%
51%
52%
53%
54%
2011 2012 2013
Outside Sales Reps Inside Sales Reps
Structure
Source: Insidesales.com 2013 research – 321 responses with companies from 30 industries
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Inside sales is a growing investment area for many organizations
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Projected Growth of the Inside Sales Industry
1,974 1,968 2,202
2,339 2,381 2,424 2,466 2,509 2,551 2,594 2,636
0
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
No
n-R
eta
il I
nsid
e S
ale
s R
ep
s (
tho
usa
nd
s)
Structure
Expected growth of non-retail inside sales jobs will grow
to 42,400 new jobs each year Source: Insidesales.com 2013 research – 321 responses with companies from 30 industries
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Key account and team-based selling models can significantly
increase sales effectiveness
Independent
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Typical Objectives
Single point of customer
contact
Coordinated team
interactions with the
customer
Broader leverage of the full
portfolio leading to higher
value solutions
Better cross-selling across
lines-of-business
Best talent on most
important accounts
Better flexibility to put best
talent on most important
opportunities
Increased customer
attraction, penetration
and loyalty
Account Leader
Structure
Customer
Sales Person
A
Sales Person
B
Sales Person
C
Sales Person
D
Customer
Sales Person
A
Sales Person
B
Sales Person
C
Sales Person
D
Account Manager
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
There is a continuum of KAM, SAM & GAM models in use
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KAM
Best talent on most
important accounts
Typically country-specific
SAM
SAM as QB for
multi-regional team
Strategy for delivering
integrated, customized,
cross-regionally consistent
solutions to high value
multi-regional customers
Often includes executive
sponsorship programs
GAM
GAM as QB for global team
Strategy for delivering
integrated, customized,
globally consistent
solutions to high value
multi-regional customers
Typically includes executive
sponsorship programs
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
A KAM strategy hinges on a number of linked business decisions
and processes, which will ultimately maximize the program’s impact
- 28 -
Right Customers
Target key segments and accounts within the
market that best fit the KAM model (for the
account and for the firm)
Right Value and Messages
Customize value propositions
for each segment
KAM as integral part of value
proposition
Right People
Define the KAM role/KAM sellers
Get the right people on the bus
Establish an executive sponsorship program
Right Enablers
Establish sales process
Manage the change
Establish KPIs and motivate
the team
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Unfortunately, many companies experience varying degrees
of the opposite when transitioning to these models
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Inflated cost-of-sales
Greater complexity and
coordination costs
Gatekeeper &/or redundant role
Resource “gloming” onto
largest accounts and deals
(e.g., free riders)
Reduced account universe reach
Structure
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Unfortunately, many companies experience varying degrees
of the opposite when transitioning to these models
- 30 -
Structure
Reduced individual
accountability and
finger-pointing
Destructive conflict between
account owners and product leads
Conflict between business
unit executives
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Unfortunately, many companies experience varying degrees
of the opposite when transitioning to these models
- 31 -
Structure
High transition costs
Excessive customer relationship
disruption
High performer turnover
Loss of focus on “business today”
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Unfortunately, many companies experience varying degrees
of the opposite when transitioning to these models
- 32 -
Structure
Failure to cost-effectively
deliver on customer
promise of greater value
Customer attrition
Lower margins
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Once sales positions are designed, sales management structure
and reporting relationships can be assessed
- 33 -
Structure
FLM
VP
Sales Reps
Generalist Management Specialized Management
Account Manager Specialist A Specialist B Specialist C Specialist D
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
There are many criteria by which to evaluate different structures
- 34 -
Structure
Many implications to consider (some of which might be in conflict)
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Pacific Packaging Supplies, Inc. Case - Introduction
PPS is a $500MM manufacturing company that sells packaging products to national and
regional CPG firms, as well as to retail outlets
The majority of the company’s revenues come from their cup and plate stock, cartons,
and skin-packaging (skin-packaging constitutes 2/5 of total PPS sales)
Pacific has a high-potential product, Retail Ready Packaging (RRP), in the pipeline
scheduled for release in March 2015, six months from now; it is expected to grow PPS
sales by 40% over three years
Case
Cup and
Paper Stock
Cartons Skin-packaging Retail Ready
Packaging
- 35 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Pacific Packaging Supplies, Inc. Case - Sales Force Structure
The PPS sales force
consists of 107 sales
representatives: 87 field-
facing reps who have
geographically
determined territories, 14
inside sales reps who
reach small and rural
customers via the phone,
and 6 national account
reps
Management expects
that reps will require
substantial training
before they can sell RRP
effectively - RRP training
programs will therefore
begin in three months
- 36 -
Case
National
Accounts
Manager
1
Territory
Rep
87
District
Manager
10
National
Account
Rep
6
VP of
Sales
Regional
Manager
2
1
Current Sales Force Structure
Inside
Sales Rep
14
= Headcount #
Inside
Sales
Manager
1
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Pacific Packaging Supplies, Inc. Case - Planning
PPS executives have decided to maintain their current sales force structure, but increase
the size of the field force in proportion to the forecasted increase in sales
Case
- 37 -
Exhibit 2: Rep Responsibility Map
Note – There is complete overlap between the Field
Force and Inside Sales Reps
Exhibit 1: Forecasted Sales, 2015 Product Type
Forecasted
Sales 2015 (%)
National CPG
Accounts
Regional CPG
Accounts
Retail
Outlets
Cup and Plate Stock 26% X X XXX
Cartons 14% XX XX X
Skin-Packaging 48% XX XXX
Retail Ready Packing 12% XXX XX
Product Type National CPG Regional CPG Retail Outlet
Cup and Plate Stock
Cartons
Skin-Packaging
Retail Ready Packing
Do you think the current plan will optimize sales?
If not, what alternative structure would you recommend?
Legend
X 0-20% of Sales
XX 20-60% of Sales
XXX 60-100% of Sales
Legend
National Accounts
Field Force/Inside Sales
Overlap
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Potential Solution 1: PPS could choose to specialize on the
product dimension with an ‘RRP Specialist’ role
National
Accounts
Manager
2 Regional
Manager
Territory
Rep
116
District
Manager
13 National
Account
Rep
6
VP of
Sales
2
1
Option 1: ‘RRP Specialist’
Regional
RRP
Specialist
7
National
RRP
Specialist
1
Inside
Sales Rep
20
Case
- 38 -
Inside
Sales
Manager
1
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Potential Solution 2: PPS could choose to specialize by carving
out the retail outlet, and cup and plate business
National
Accounts
Manager
2 Regional
Manager
Territory
Rep
94
District
Manager
10 National
Account
Rep
6
VP of
Sales
2
1
Retail
District
Manager
4
Retail
Sales
Manager
1
Retail
Sales Rep
36 Inside
Sales Rep
14
Case
- 39 -
Inside
Sales
Manager
1
Option 2: Cup and plate/retail outlet focus
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
- 40 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
The most commonly used approaches to sales force sizing
and allocation are limiting and misleading
- 41 -
Sizing
Same as Last Year Percentage of Sales
Match Your Competitors Squeaky Wheel
2013 2014
Team
One
Team
Two
Team
Three
200
50
25
Team
One
Team
Two
Team
Three
200?
50?
25?
Competitor One Competitor Two
Our Size
Product Team A Product Team N
I need 100!
Product Team B
I need 100!
I need 100!
2010 2014 2012
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Understanding account coverage requirements (workload)
is an important first step in sizing sales forces
- 42 -
Sizing
Activity Element Seg A Seg B Seg C
Number of Accounts
Lead Generation/Needs Identification
Promotion/Demos
Negotiation
Closing/Install
Relationship Maintenance
Total
Rep Call Capacity
FTEs
Effort per account (calls, hours, etc.)
Sum of total effort per account X number of accounts
Calls or hours per year
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
#1 #2 #3 #4 #5 #6 #7 #8 #9 #10
Va
lue
per
Ac
ct
($)
Customer Segment
Incremental Sales
Cost to Serve
A good understanding of account potential can help determine
affordable customer coverage and sales force size
- 43 -
Sizing
Rep workload based on
customer needs and the sales
process can quantify the cost
to serve each segment
Market potential and sales
history can indicate the
average sales value of
different customer segments
Cover top 7 segments: Determine sales force size from total workload and rep capacity
Break-even
coverage
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Break-even analysis can provide a baseline for thinking about
sales force investments
- 44 -
What’s the fully loaded
cost of one rep? ? Gross margin? ?
Break-even = $250,000
40% = $625,000
What do your firm’s break-even numbers look like?
Sizing Exercise
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
How do you assess the ‘value’ of a rep?
- 45 -
Sizing Exercise
Sales Reps 100
Sales ($MM) 100
COGS 40
Gross Margin 60
Sales Force Cost 20
Other Marketing 5
Admin 5
Operating Profit 30
Sales per Rep 1.0
SF Cost as % of Sales 20%
Op Profit as % Sales 30%
150
120
48
72
30
5
5
32
0.8
25%
27%
50
70
28
42
10
5
5
22
1.4
14%
31%
1.4
14%
31%
32
0.8
25%
27%
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Sizing & allocation can be decided based on the cost/benefit of
alternative sizes
- 46 -
$ F
ina
nc
ial
Imp
ac
t
Sales Force Size
Revenue
Profit
Contribution
Segment # of
Accounts
AMs
Required
Cumulative
AMs
Cumulative
Rev ($M)
Cumulative
Profit Cont. ($M) ROI
1 76 10 10 $24 $7 332%
2 95 9 19 $41 $11 252%
31 200 4 462 $429 $66 8%
32 233 4 466 $431 $66 7%
Required Hurdle Rate = 100%
Sizing
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
- 47 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
How would you respond?
Your company has placed some significant bets on new technology
and is banking on double-digit revenue growth, which has been reflected in your
quota for next year. You recognized the need for additional feet on the street
and have secured budget approval for additional headcount. You have
implemented a process to identify the best places to put new salespeople using
data to estimate sales potential and workload.
You have proposed to add a new salesperson into a geography where
one of your best salespeople is. The only way to make the new territory viable is
re-align some of the larger accounts currently covered by the top performer.
This salesperson has delivered some fantastic results, but you are convinced
the business can be growing even faster if a new salesperson is added. The rep
has threatened to leave if he loses any of his important accounts.
- 48 -
Deployment Exercise
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Balanced
Range
Territory design has significant impact on achieved market coverage
- 49 -
Deployment
Highest
Territories
Te
rrit
ory
Wo
rklo
ad
Lowest
Territories
Sub-optimal Alignment
Optimal Alignment
Territories with insufficient work (Reps work part-time or visit unprofitable customers)
Territories with too much work (Reps are overworked or important customers are under-supported)
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Heat maps can highlight where relocation may be needed
- 50 -
Deployment
Legend
Shaded by: Rel Bal
0.00 – 80.00
80.00 – 90.00
90.00 – 110.00
110.00 – 120.00
120.00 – 200.00
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Mirroring specialist territories can help sales rep coordination
- 51 -
Deployment
Mirroring the sales teams can make customer coverage more effective
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
A prioritized list of business rules should guide alignment decisions
- 52 -
Deployment
Business Rule Priority
Create balanced territories
Keep Regional span of control at 7 territories
Keep personnel home location within geography
Minimize account disruption
Maintain state boundaries
Do not split major market areas
Do not split ZIP Codes (Postal Codes)
Priority High Medium Low
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Try to avoid the “trap” of designing around people
- 53 -
Resist the temptation of designing
territories for individual personnel
(i.e., designing larger territories for high
performers and smaller territories
for new or under-performers)
Remember these key points:
Outstanding personnel could be
promoted in the near future
Personnel frequently transition out of
the organization
Your customers will be with you longer than
your personnel, but only if serviced properly
Relatively well balanced territories
optimize account coverage and help
morale by balancing workload and potential
across territories
Deployment
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Agenda
Introduction
Customer Segmentation
Sales Force Structure
Sales Force Sizing
Sales Force Deployment
Wrap Up
- 54 -
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Wrap Up
- 55 -
Closing
Have a clear segmentation
strategy – this is the starting point for
all resource deployment decisions
Structure is not static but
rather dynamic
As markets continue to evolve,
traditional field sales force
structures are under pressure
(KAM and inside sales)
KAM is not a role, it’s a
business strategy
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates
Wrap Up
- 56 -
Managing sales force size by ratios
is sub-optimal
It can be difficult to change territories
without a corresponding change in
incentive compensation plans
Design sales force territories around
the business not the people: balance
workload, link potential (account)
to instill fairness, and take a flexible
approach to comp plans as they
can break
Closing
SMA 2014 - ZS Solem-Sims - Market Coverage © 2014 ZS Associates - 57 -
Thank you!