Today’s post is by John Stewart, CEO of MapAnything.
In my previous blog for Selling Power, I introduced a new category of sales technology called geo-productivity software (GPS). As a follow-up, I would like to outline how GPS can help you optimize your sales territory plan for greater results.
There are many ways sales and service territories are defined, including geography, industry, buyer profile, and product use case. Sales leaders know that focusing on the right accounts – and maximizing time with those accounts – is a key to success. Using CRM data in combination with data about the geographic location of customers, you can find the most promising regions and give sales reps the ability to focus on “hot spots” – or geographic areas with the most opportunity.
Building a sales territory plan using CRM data is a known best practice. Defining territories with CRM and geographical information can be even more successful than using CRM data alone.
To define a high-performing territory, leverage CRM data about which opportunities are the most promising as well as geographical information about the location of those opportunities. GPS can show you concentrations of customers, opportunities, and leads.
Using these two factors, you can define territories by both geography and opportunity value. In this way, you can tightly define territory boundaries based on probable performance.
In addition, your reps can focus on tighter geographic areas and reduce time driving between accounts, leaving more time for selling. The following method will help you define a productive territory structure for your business.
- Define and quantify territory parameters with factors like geography, product use case, and buyer profile. Use CRM data to identify geographic areas with the greatest number of existing customers and greatest number of new customer leads that fit your product use case. Using specialized tools such as premium data sources and geo-productivity technology can help you identify targets and prioritize opportunities within a geography or territory. Use this data to find the potential territory value. Check the potential territory value against historical performance and active pipeline to define a territory that is optimized for success.
- Assess the potential territory growth potential. You can define the opportunity within a territory as you calculate the delta between current pipeline and untouched net-new leads. Use a data source to identify and estimate the value of a geographic territory. Using geo-productivity software, you’ll be able to see a map-based visualization of current customers and these new opportunities. This assessment makes it easier to build a sales plan focused on prioritized opportunities with existing customers and new leads you have identified.
- Normalize the value of the two revenue sources: existing customers and new leads. Run “what-if” scenarios based on existing customer data, pipeline, and new lead data. This is where the art of data-oriented territory management really shines. Based on business goals, you can define and shift territory boundaries to find the right balance of opportunities and maximize the likelihood of meeting the number.
- Track results and monitor progress. With frequent updates, sales pipelines are more accurate and sales reps are focused on results rather than administration. Timely reporting within CRM lets you monitor progress through the quarter and make adjustments as necessary.
- Optimize territory plans. Using CRM data and the location information of new leads and opportunities, you can change boundaries and territory plans to achieve greatest results. As territories evolve and gain maturity, CRM data about performance, sales cycle, and concentration of the greatest, most lucrative opportunities can help you constantly reassess territory plans and adjust boundaries for optimal results.
We believe that where customers and prospects are located is a key piece of information that has been overlooked by most sales organizations. As you add the “where” factor to your sales planning and execution, you’ll discover greater results and more efficient use of resources. Using geo-productivity software like MapAnything along with CRM, you’ll have the information you need to build a successful sales territory plan.