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Chapter 5
Designing Sales Territories That Increase Sales
This chapter discusses sales territory alignment, or the assignment of customers to salespeople. Good sales territory
alignment is important, as it enhances customer coverage, increases sales, fosters fair performance evaluation
and reward systems, and lowers travel costs.
The chapter is designed to help you:
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Sales Territory Alignment
Best Practices Advisory
- Balance workload across territories to maximize market coverage; balance potential across territories to give all salespeople a fair chance to succeed.
- Develop a benchmark alignment centrally, using consistent, objective criteria for all sales areas, and then allow first-line sales managers to adjust that benchmark to account for local differences and to enhance acceptance by the sales force.
- Audit your alignment annually.
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- Recognize the symptoms of poor sales territory alignment
- Understand the impact that territory alignment has on productivity, sales, and profits
- Recognize the conditions that create the need to realign sales territories
- Overcome the obstacles that prevent companies from maintaining good territory alignment
- Realign sales territories using an objective, data-based process that incorporates local sales management input
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