Territory Management Plan
"How To Build An Effective Territory Management Plan"
An effective territory management plan helps an organization drive and maximize revenue. Because territories can be so diverse, it is important to focus on key areas of a territory to effectively leverage selling efforts and resources. A well thought-out plan changes focus from singular accounts to focus on a singular territory as if it were an account. The process below helps in making the decisions where and how to engage a territory.
Understanding And Segmenting The Territory
Start by analyzing and segmenting the territory. Develop an understanding of the distinct market segments that are available and that most profitable to address. Develop a plan for engaging the chosen segments by analyzing the factors that influence each segment. Below are some considerations for breaking the territory into distinct and identifiable market segments.
Characterize The Territory
Understand the different potential environments and influences affecting the territory. Here is a list of question to answer to help characterize the territory.
Segment The Territory
Break the territory down into smaller market segments as part of the territory management plan. Look for groups of current and potential customers for your offerings having a similar set of needs and requirements. Look for groups of clients that might reference each other when making a purchasing decision. Market segments can be broken down by:
Make sure the segments are measurable, accessible, unique, stable, and large enough to sustain your sales expenses.
Territory Sales And Growth Strategy
Each territory can have different streams of potential revenue for a sales rep. There may be installed base, and qualified current revenue opportunities in the sales funnel. In addition, there may be new business development opportunities and potential revenue consisting of unqualified and unidentified opportunities.
As part of your growth strategy, choose key market segments. Look at the potential in each segment for your products and services, the economic trends, the alignment with your company goals, and the potential for winning the business. Remember there are only four ways to grow your business:
When developing your territory, look for both the short-term low hanging business, and the longer-term business development that will keep your sales pipeline healthy.
Here is a simple formula to help you identify potential revenue in a territory:
C x $ x WR = P
The potential revenue (P) can be estimated by the number of new customers (C) available multiplied by the typical project revenue ($) and your percentage win rate (WR).
Leveraging Available Resources
The key to developing sales in a territory is to determine where to most effectively leverage resources. Determine who can assist in achieving sales goals. Then recruit those individuals and resources and clearly define the roles, activities, and expectations for each. Manage resources by:
Some support and resources are internal and some of is external partners who can positively influence or resell your products and services. Look for partners who can help in different areas including:
Also look for partners and organizations that provide substantial influence to customers and potential clients within the territory.
Marketing To The Territory
The main purpose of territory marketing is to build awareness of your products and services and to develop initial interest. Think of marketing events that be can tailored for individuals, small groups, and for mass coverage and appeal. Build awareness by providing the message your company has a solution to meet the generally identified business needs of your prospects. Provide information on your solution's advantages and benefits. This makes it easier to focus on building preference and an action to purchase.
Put The Territory Management Plan Together and Execute
Once the analysis and decisions about how to approach sales in the territory are made, put together the territory management plan. The plan should include:
A territory management plan helps to maximize the value that can be brought to clients and customers. And, it is a tool to help maximize sales. Remember, perception is reality. It is important to have customers perceive your business as providing more value and benefit to their organization than the competition. The territory management plan helps provide and communicate your company's value to the territory to ensure success.
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