Efficiency is an essential quality in determining a businesses’ success. While all areas of a company should be looked at for ways to improve its efficiency, sales, as the primary driver of revenue, is particularly important.
Sales territory alignment can help improve efficiency within an organization’s sales process as it begins to grow and scale.
This process involves redistributing and reallocating territories among salespeople to optimize productivity and maximize profit.
Essentially, it requires that companies assess the size and activity of territory to ensure that the business has the right human and resources.
For example, if you’re selling a SaaS work management tool for small businesses, you wouldn’t place the same amount of marketing effort and sales outreach in New York City as you would in Fort Worth, Texas.
This is because there are more small businesses in New York City than in Fort Worth, Texas. Therefore, you ensure that you don’t underserve or overserve a territory by using sales territory alignment.
To make the process of sales territory alignment as easy as possible, it’s recommended that companies use sales territory mapping software.
This software allows users to upload all their location sales data (such as small business locations in New York City) and have it automatically plotted on a map. Then, using the tools provided by the software, users can divide up territories based on the plotted data.
How Sales Territory Alignment Can Increase Your Sales
The goal of sales territory alignment is efficiency. Therefore, a company’s realignment strategy shouldn’t take a one-size-fits-all approach.
Instead, it should focus on a comprehensive solution that weighs revenue goals and client needs against company capabilities. In doing so, sales territory alignment will increase your sales in the following five ways:
Increase profits by optimizing the size of a dedicated sales team for optimal reach
Companies should ensure that they have the right amount of people to address a territory properly.
They should consider how many potential clients a single salesperson can handle and divide up the territory appropriately using sales territory alignment.
Businesses should only employ the number of salespeople necessary to address the needs of the territory and no more.
Boost revenue by distributing effort toward client accounts with the highest engagement and highest incremental revenue per call
Using the data collected, companies should make sure that the most effort is being spent on the accounts with the greatest likelihood of converting.
The most effort should also be expended on accounts that promise the greatest amount of revenue. Spending time on low-converting and low revenue-generating accounts is not efficient.
Eliminate outreach redundancies and decrease client fatigue
Through sales territory, alignment companies can make sure that they aren’t calling on the same people time after time.
While it’s a good idea to revisit clients periodically, oversaturating them with calls will result in client fatigue and decrease the opportunities for sales.
Offer better client coverage to improve client satisfaction
Businesses need to make sure that their clients get the right amount of attention.
If a salesperson is stretched too thin, they may not be able to give their clients enough attention. Sales territory alignment will help to optimize the number of clients each salesperson is responsible for.
Decrease travel expenses by putting an outbound sales strategy in places that appropriately matches the size of the territory
Sales territory alignment can help companies plot their outbound sales strategy efficiently to reduce travel expenses.
This means determining what territory to send salespersons to that will offer the most sales opportunities within a given distance or time period.
Conclusion
Territory alignment is crucial for scaling and growing a business. By effectively mapping out and visualizing sales territory alignment, companies can improve their sales.
