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Glossary Terms
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Territory management is a strategic approach used in sales and marketing that involves the division of a company's customer base into geographical areas or 'territories'. Each territory is then assigned to a specific sales representative or team.
The goal of territory management is to ensure the efficient allocation of sales resources, maximize market coverage, and provide better customer service.
Here are some key components of territory management:
1. Territory design: This involves defining the territories in a way that balances potential opportunities and sales resources. It's based on various factors like geographical location, customer density, market potential, and salesperson workload.
2. Account allocation: After territories are defined, accounts within those territories are assigned to sales representatives. The allocation typically considers factors like the representative's expertise, the location of the account, and the potential value of the account.
3. Sales coverage: Territory management aims to ensure that all potential and existing customers within a territory are adequately serviced. This involves planning and scheduling sales calls or visits to meet customer needs and maximize sales opportunities.
4. Performance monitoring: Sales performance within each territory is regularly monitored and evaluated. This helps in identifying underperforming territories and implementing corrective measures.
5. Territory adjustments: Over time, customer distribution and market potential may change. Regular reviews and adjustments of territories help keep the sales approach aligned with these changes, ensuring efficiency and effectiveness.
The benefits of effective territory management include increased sales productivity, improved customer relationships, fair distribution of leads and opportunities among salespeople, and more efficient use of resources. It helps businesses to reduce travel time and expenses, ensure that high-potential accounts receive the needed attention, and that all customers receive regular and timely contact.
Technology plays a significant role in modern territory management. CRM (Customer Relationship Management) systems and sales analytics tools can assist in the design, allocation, and monitoring of sales territories, and provide insights that drive better decision-making.
Territory management is a strategic approach to business practice that involves organizing and allocating geographic areas to effectively manage resources and sales efforts. The essential purpose of territory management is to effectively enhance productivity by strategically dividing a market or customer base into manageable segments.
Some situations when using territory management in Salesforce can be particularly beneficial are as follows:
Territory management is basically used for dividing and managing a company’s market or customer base into specific locations or segmentation. It allows organizations to optimize resource allocation and sales strategies by assigning the right salesperson to the correct locations based on factors like geographical areas or industry.
Role hierarchy, on the other hand, is used to establish the logical hierarchy of user roles within an organization. It identifies the data visibility and access permissions of users in Salesforce.
Key reasons why territory management is essential for outside sales teams are as follows:
Large geographic coverage: If the company operates in multiple regions, territory management can help divide the overall market into smaller, more manageable territories.
The steps involved in implementing territory management:
Examples of territory management software are as follows:
