Sales Analytics: Strategic Territory Assignments


It’s common to organize sales staff by geographic territory. This may seem to make sense in terms of controlling travel time and costs, and developing expertise by region, but it can leave room for hidden workload imbalances:

  • Should you take steps to equalize the “opportunity quotient” of different territories? This takes into account differences in the number and quality of potential prospects.
  • Do some of your sales territories have high turnover of sales staff? This can be a signal that a territory lacks sufficient opportunities based on external factors that aren’t controlled by the talent/quality of the salesperson.

Issues like these aren’t likely to be fixed by improving compensation, because they’re driven by circumstances that are outside of the control of salespeople. It’s worthwhile to periodically assess the design of your sales territories to check their comparative alignment and adjust for imbalances.

Markets are constantly changing, and it’s wise to assume your competitors are responding and realigning to optimize their sales strategies. Not surprisingly, there are software programs for this very purpose – just Google “sales territory design software.” This is more confirmation that sales territory design is serious business that can help your bottom line.

For more on this topic, check out this HBR blog posting: Why Sales Teams Should Reexamine Territory Design

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