Why Territory Management Matters
Poorly designed territories create unfair workloads, competitive conflicts between reps, and uncovered market segments. Well designed territories ensure every potential customer is covered, every rep has a fair opportunity, and your sales capacity is maximised.
Geographic vs Account Based Territories
Geographic territories assign reps to specific regions. This works well for businesses with a broad customer base and local selling requirements. Account based territories assign reps by industry, company size, or named accounts. This works better for specialised B2B sales where expertise matters more than proximity.
Some businesses use a hybrid approach: geographic territories for smaller accounts and named account assignments for enterprise opportunities.
Sizing Territories Fairly
Equal geographic size does not mean equal opportunity. A territory covering the Sydney CBD might have more prospects per square kilometre than one covering regional Queensland. Size territories based on revenue potential, not geography alone. Use data on the number of target accounts, their average value, and historical conversion rates to balance opportunity across territories.
Preventing Territory Conflicts
Clear rules prevent disputes. Define exactly how territories are determined, what happens when a customer has multiple locations, and how leads from marketing campaigns are assigned. Document these rules and make them accessible to the entire team.
When conflicts arise, and they will, resolve them quickly and fairly. Letting territory disputes fester damages morale and team culture.
Reviewing and Adjusting
Territories should be reviewed annually at minimum. Markets shift, new competitors enter, and customer demographics change. A territory that was balanced last year might be over-saturated or under-resourced today. Be willing to adjust but communicate changes early and explain the reasoning.
Using Commission Agents to Fill Gaps
If you have geographic gaps in your coverage or lack expertise in certain verticals, commission based sales agents can fill those gaps without the commitment of hiring full time reps. Zepys makes it straightforward to find agents with specific geographic or industry experience to complement your existing territory structure.
Tracking Territory Performance
Monitor revenue, pipeline value, and activity metrics by territory. Compare performance across territories to identify which ones are thriving and which need support. Consistently underperforming territories might indicate market issues rather than rep issues. Investigate before blaming the salesperson.