Creating and implementing a sales territory map is crucial for any field sales team to function effectively. It allows you to clearly outline your resources and targets, so you can prioritize and develop a plan to achieve your goals. Without a sales territory map, managing a field sales team is like trying to play a board game without a board or knowing the location of the pieces.
Much like a board that shows where these pieces are, a territory map, when executed properly, can lead to better strategy, lower costs, and improved employee morale. However, creating balanced territories goes beyond just dividing regions on a map. That’s where specialized territory map software comes into play.
This guide will discuss the importance of sales territory mapping for small businesses and strategies for maximizing their potential.
What is sales territory mapping?
Sales territory mapping is identifying and organizing a group of customers for an individual salesperson to manage. Sales teams will do this by laying out geographic regions on a map. However, it’s important to consider multiple factors to create “a proper territory.”
Since the market is constantly changing, whether it be new competition, new clients or changes in demographics, a sales territory will too. Therefore, it becomes part of a good sales team to regularly review and adjust the territories for optimal efficiency, known as sales territory management.
Helping your small business
So, how does this process help small businesses?
Increasing productivity
One of the key benefits of sales territory mapping for small businesses is increased efficiency and productivity. By dividing your market into smaller, manageable territories, you can ensure that your sales team focuses on the areas most likely to produce paying customers. It will also help reduce travel costs, thereby bettering company profits.
Better customer retention
Another benefit of sales territory mapping for small businesses is improved customer relationship management. By assigning sales representatives to specific territories, you can ensure that your customers receive the personalized attention they need to build long-term relationships. In the long term, improving customer relationships can help increase customer retention and grow their customer base.
Assigning territory sizes
A third benefit is mapping territory sizes helps leaders visualize territories and ensure territories are appropriate for each salesperson. With filters, salespeople can evaluate the value of accounts and pipelines in each area, ensuring that all salespeople have an adequate number of opportunities to be successful. When a salesperson’s territory has too many leads, it can result in missed opportunities and lost sales. However, when territories are balanced properly, salespeople can engage effectively with all promising leads and close more deals. Sharing the maps with the team makes it possible to make real-time adjustments when a sales rep requires additional support or is out of the office.
Incorporating competitor data
Finally, there are also various strategies for incorporating competitor data into territory planning. Some companies may assign one territory to cover a competitive zone, while others may divide the area among multiple reps to avoid overwhelming any individual. Regardless of the approach, it’s essential to match the workload and available resources to the level of competition in each area. Sales reps in highly competitive regions may require more support to achieve the same level of success as those in other areas.
The bottom line
Sales territory mapping is a powerful tool that can help small businesses optimize their sales efforts by visualizing geographical areas and ensuring that territories are appropriate for salespeople to cover. By using filters to evaluate the value of accounts and pipelines in each area, small businesses can ensure that all salespeople have an adequate number of opportunities to be successful. Additionally, by incorporating competitor data into territory planning, small businesses can make informed strategic decisions and effectively plan their territories, marketing, and future business expansion.
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