Why do some sales teams crush quota attainment while others struggle?

It goes beyond the sales plan we put on paper.The secret lies in their ongoing sales territory management.

In this article, we'll share 8 tips to help you achieve an effective sales territory management plan so you can increase productivity and maximize sales.

What is Sales Territory Management?

Sales territory management isn't just drawing the sales map.

But first, let's back it up.

The sales territory plan starts when you divide and assign territories based on your team members strengths.

We divide territories based on varying criteria, like geographic location, industry, or the different product or service.

But that's just the first step.

Once we identify sales territories, we need to optimize resource allocation for each customer segment.

A sales territory plan focuses on the nitty-gritty of:

• Keeping sales territories working efficiently
• Balancing sales team workloads
• Adapting to target market conditions

8 Tips for Your Sales Territory Management Plan

A good territory management plan helps your sales reps work smarter, not harder.

It's about fine-tuning your sales organization to run at peak performance.

1. Keep Sales Territories Fresh: Review and Adjust On a Regular Basis

Think your sales territories are set in stone? Think again.

The customer market's always moving, and your sales strategy should be, too. Here's why regular check-ins and tweaks are crucial to your territory management plan.

• Avoid the stale trap: Customer markets evolve, customer bases change, and what worked last quarter might not cut it now. Regular reviews keep your territory plan fresh and effective.
• Spot the superstars (and the strugglers): Some sales territories might be gold mines, while others are ghost towns. Identifying these early lets you allocate resources where they'll make the biggest impact.
• Keep your sales reps happy: Nothing kills motivation faster than an unfair workload. Regular adjustments ensure everyone's got a fair shot at success.

To make sure regular pipeline reviews happen, make it a routine.

Schedule quarterly check-ins to dive into the territory data.

Look at sales performance per territory, customer acquisition costs, and market potential vs. the actual results. Consider using heat maps to visualize the sales data.

Don't forget the power of your sales representatives. They're on the front lines and their insights on territory challenges and opportunities could be gold.

2. Tech It Up: Use Technology and Automation

Technology can supercharge your territory management plan.

You'll get data-driven insights so you can spot trends and make decisions based on facts, not hunches. Automation tools also let your sales reps focus their efforts on sales opportunities.

Types of Territory Planning Tools

Here are a few automation tools to flesh out your sales plan.

• CRM systems: Think of CRMs as the central nervous system of your sales infrastructure. They track customer interactions, sales pipelines, and sales performance all in one place.
• Territory visualization tools: Visualize your territory map with heat maps that show sales density, demographic overlays, and drag-and-drop territory adjustments. Some CRMs have built-in territory mapping features.
• Sales analytics platforms: These data science platforms crunch the numbers to forecast territory goals, identify at-risk accounts, and suggest resource allocation.
• Sales Route Mapping App: Optimize your sales reps' travel time and routes to maximize face time with customers. Many integrate with CRMs and territory mapping software.

3. Set Your Sights: Define Clear Territory-Specific Goals and KPIs

If you're not measuring it, you're not managing it.

Setting territory goals and KPIs per each sales territory gives everyone something to aim for.

It motivates your reps and helps you course correct before small issues become big problems.

Make sure territory goals ladder up to your overall sales strategy and are aligned to the specific territory since each has different benchmarks and challenges.

Blend revenue targets with sale activity metrics and current customer satisfaction scores for a well-rounded view.

Sales Goals to Measure for Territory Planning

Keep in mind that customer data only matters if it's connected to a set goal.

Here are specific metrics to choose from based on your sales goals.

• Revenue per territory
• New customer acquisition rate
• Customer acquisition cost
• Customer retention rate
• Average deal size
• Sales cycle length
• Customer lifetime value
• Quota attainment per rep
• Customer touches (calls, emails, meetings)
• Win rate

4. Knowledge is Power: Provide Ongoing Training and Support

Your sales reps are your territories' greatest assets.

Keep their territory knowledge sharp with training and support resources as markets change. Plus, investing in your team's growth shows you value them as a sales leader.

Your training should incorporate:

• Product or service knowledge
• A soft skill set (negotiation, time management, etc.)
• How to use the CRM and territory visualization tools
• Specific territory knowledge on challenges and opportunities for that region

Types of Sales Team Training

To get started with training, consider which of these training programs works for your field reps.

• Mentorship: Pair seasoned pros with newer folks for knowledge transfer.
• Regular check-ins: One-on-ones that focus on growth, not just numbers.
• Microlearning: Short, focused learning sessions that fit into busy schedules.
• Role-playing: Practice makes perfect, especially for tough sales scenarios.
• Resource library: Build a knowledge base of best practices, success stories, and territory insights.
• Just-in-time support: Tools like message support or quick video calls for those "I need help now" moments.

5. Team Up to Win: Encourage Collaboration and Communication

Breaking down silos between each sales territory can unlock serious potential.

What works in one territory might work wonders in another, too. When more minds work together, they're more likely to come up with baseline solutions and share insights on territory challenges they've experienced.

Here are a few ideas for how you can facilitate collaboration and information sharing across the sales team:

• Collaborative sharing platforms: Whether this happens in regular team meetings or in digital spaces like Slack or internal forums, create a space dedicated to sharing wins and challenges.
• Cross-territory projects: Assign tasks that require reps from different territories to work together.
• Ride-along rotations: Have reps shadow colleagues in different territories to gain fresh perspectives.
• Open door policy: Make it easy for reps to reach out to leadership with ideas or concerns.

6. Build Bridges in Sales Territories: Customer Relationship Management

Maintaining strong relationships across the customer journey can drive repeat business and referrals and provide your team with invaluable market insights. Building a strong reputation and fostering connections make it easier to secure more customers.

This starts with understanding local nuances and buying behaviors. Here are some other tips for building strong relationships within a sales territory.  

• Make it personal: Tailor your approach to each customer's unique needs and preferences, and don't be afraid to use territory data to refresh your memory.
• Offer solutions, not just products: Become a trusted advisor in your sales territory and build a relationship by sharing territory-specific news and updates.
• Stay top-of-mind: Check in regularly and use a mix of communication channels (email, phone, social media).
• Build community connections: Host territory-specific events or webinars and facilitate connections between customers in your territory.

7. Bring It Home: Implement Effective Sales Incentive Programs

Set goals that align with business objectives to help sales reps crush it in their territories.

Incentive programs increase sales productivity and can be great incentives to keep top performers.

Consider which of the following incentive structures will work best for your sales team:

• Monetary and non-monetary perks: Blend financial rewards with non-monetary perks to reward short-term wins and long-term incentives.
• Territory-specific targets: Adjust goals based on sales territory potential and challenges. Reward both individual and team performance within sales territories.
• Beyond sales: Reward sales productivity and activities that drive long-term territory health, such as customer satisfaction and retention or growing existing customer accounts.
• New market penetration: Provide special incentives for breaking into untapped segments of a territory, or entirely new sales territories.
• Tiered structures: Create multiple achievement levels to keep everyone engaged and provide extra rewards for exceeding sales targets.
• Recognition programs: Public recognition can be powerful, so consider rewards like a "territory MVP."

8. Always Be Growing: Feedback and Continuous Improvement

As entire markets change, your sales territory plan needs to keep pace.

This often involves gathering regular feedback from sales reps to spark ideas and improvements for territory management.

To create a feedback loop, start with these steps:

• Gather feedback from the field sale team: Quarterly territory performance reviews, monthly one-on-ones, surveys, and focus groups are all great tactics for gathering 360-degree feedback to get a complete picture.
• Take customer input into account: Gather feedback from customers, as they have a different perspective than your internal team.
• Analyze sales data: Review territory performance metrics regularly and look for trends and anomalies to see where you can optimize territories.
• Test the waters and learn: Pilot changes in select territory assignments and set specific metrics that must be met before full rollout.
• Communicate changes: Keep your team in the loop about territory planning updates, and always explain the "why" behind changes to get buy-in.
• Celebrate wins: Recognize and reward sales results and contributions.

Smart sales territory management will empower your reps to win in the short- and long-term. You'll be better equipped to adapt to changing market conditions, and you'll drive results faster. Remember, effective territory management is a journey, not a destination.

Take Your Sales Territory Management to the Next Level With CaptivateIQ

Without a sales compensation plan to back it up, even the smartest sales territory plan might miss the mark. That's where CaptivateIQ comes in — we're not just another sales comp platform, we're your secret weapon for supercharging your territory management.

Learn more about how we can help you create flexible commission structures that adapt with your sales territory plan and reward your sales reps.