Quick Definition
Territory planning is the process of determining how accounts, geographic areas, or market segments are assigned and managed across sales teams. Territory planning ensures that accounts are assigned appropriately, coverage is optimized, and sales teams can effectively manage their territories. Territory planning considers factors like account size, industry, geography, and sales team capacity.
Why It Matters
Territory planning is critical because it ensures appropriate account assignment, optimized coverage, and effective territory management. Without territory planning, accounts may be poorly assigned, coverage may be suboptimal, and sales teams may struggle to manage territories effectively.
How It Works
Territory planning works by: analyzing accounts (size, industry, geography), analyzing sales team capacity and capabilities, assigning accounts to sales reps based on fit and capacity, optimizing coverage, and continuously refining territory assignments based on performance.
Real-World B2B Example
A B2B SaaS company plans territories by analyzing accounts (size, industry, geography), analyzing sales rep capacity and capabilities, assigning accounts to sales reps based on fit and capacity, optimizing coverage, and continuously refining territory assignments based on performance.
Common Use Cases
- Account assignment
- Coverage optimization
- Territory management
- Sales capacity planning
- Performance optimization
Common Mistakes to Avoid
- Not analyzing accounts properly
- Not considering sales rep capacity
- Poor account assignment
- Not optimizing coverage
- Not refining territories based on performance
Frequently Asked Questions
What is territory planning?
Territory planning determines how accounts, geographic areas, or market segments are assigned and managed across sales teams. It ensures appropriate assignment and optimized coverage.
How do you plan territories?
Plan territories by: analyzing accounts (size, industry, geography), analyzing sales rep capacity and capabilities, assigning accounts based on fit and capacity, optimizing coverage, and refining based on performance.
How often should you update territories?
Update territories quarterly based on performance, account changes, and sales team changes. Territories should evolve as conditions change.