3 Essential Tips for Effective Territory Management

April 20, 2017 Sherrod Patching

Careful territory planning is crucial to any business’s success. If you want your business to scale at all, you can’t afford to go without a territory management plan.

Territory management isn’t something you can implement ad hoc. In order to do it thoughtfully, strategically, and — above all — effectively, here are a few basic steps we have seen our customers follow successfully.

1) Determine your Account Quality and Potential

This exercise is both quantitative and qualitative. Depending on your business, you need to determine the metric that best defines an opportunity existing within an account.

Account quality is determined by the potential value or revenue an account can bring to an organization. This can be by way of two key factors in particular (though not necessarily exclusively):

  1. Potential to spend: For example, if you’re a SaaS company which deals in marketing technology, you’d be looking for a company with a significant or large marketing budget that spends a lot on MarTech. It could also be a good sign if they’re a tech- or marketing-orientated business more generally, since they may naturally be more familiar with and open to the kind of offering you have.
  2. Partnership opportunities: Say the above company is already a customer, and sells to a number of companies that could potentially use your solutions as well. When their SDRs call prospects to promote their own offering, questions about their marketing stack, or where they get their data from, may come up as well. If their SDRs like what you do, then they’ll act as advocates for your company and promote you themselves.

The above is a basic, somewhat simplistic example of course. There can be many other signals to inform your measurement of a “quality” account.

That’s why Leadspace builds models that can look at past win and loss history to score and classify accounts based on your categorizations.

Watch — How to map out your total available market in just a few clicks:

2) How do your territories compare?

The next step is to compare the various prospects you’ve identified. To do so accurately, efficiently and in a scalable way, you’ll need to utilize predictive scoring.

Think strategically. Based on the overall value of each territory you’ll be deciding what sales resources to direct to each one. If you get it wrong, your decision could negatively impact the effectiveness of your entire sales team. Get it right, however, and you’ve cleared the field for a successful lead generation strategy.

Questions to ask when comparing territories should include:

  • What is the total opportunity value of each territory?
  • What is the average score or grade of accounts in each territory?
  • How much expected revenue can each territory generate and how many reps should be working each territory?

Here’s a great illustration of the necessity for both high quality data and a powerful technology like Artificial Intelligence. Neither can achieve its full value without the other.

Watch — Leadspace Predictive Scoring – how it works:

On the one hand, getting quality data is all very well — but you need a tool powerful and sophisticated enough to accurately translate all of that data into a coherent plan of action. On the other hand, the most impressive martech tool won’t work if the data it’s using isn’t accurate.

Here’s an illustration of how Leadspace’s Audience Management Platform combines the two. The red dots represent the score for each state, while the blue bar indicates number of leads:

Territory Management Best Practice 2

Illustrative

This kind of road map lets you easily understand your total available market in each territory and better assign the appropriate number of reps to work them, based on any number of factors that are all incorporated into a predictive score.

3) Properly assign sales reps to territories that match their skill set

Once you’ve taken the previous steps, it’s time for action.

Depending on how you classify accounts, your team will have different skill sets to accompany these classifications.

Once again, making this decision correctly relies in great part on the quality of the data you’re working with. It’s not just a question of correct vs. incorrect  data, either (though it’s obviously fundamental to ensure your data is correct and up to date). The level of intelligence you can glean from your database is just as crucial.

For example, if you’re working based on superficial insights such as job title, any conclusions you draw will in practice be fairly arbitrary — even if all the data is technically accurate. “Job title” doesn’t really tell you much about the quality of the lead. It doesn’t tell you anything about the size, revenue and location of that individual’s company. Nor does it say anything about their industry, what technologies they are familiar with, or whether their account is in fact part of a larger company hierarchy (e.g. is it a subsidiary? A local branch? A franchise? Or is this “site”/company the sum total of the account?)

Again: the more insights you can glean, the more accurate a strategy you’ll be able to build — so your data solution needs to be as granular as possible. At the same time, your sales and marketing need the capacity to process that data as effectively as possible.

This marriage of data and cutting-edge technology is what makes a true demand gen solution.

Leadspace Audience Management Platform -- White Paper

 

 

 

 

 

 

 

 

Image from Pixabay | CC0 Public Domain

The post 3 Essential Tips for Effective Territory Management appeared first on Leadspace.

Previous Article
Microsoft and DXC Win Big at Marketo and SiriusDecisions — What’s Their Secret?
Microsoft and DXC Win Big at Marketo and SiriusDecisions — What’s Their Secret?

Events season is well and truly underway for B2B marketers. With Marketo’s Marketing Nation Summit, SiriusD...

Next Article
Infographic: The Key Challenges and Benefits of B2B Martech Today
Infographic: The Key Challenges and Benefits of B2B Martech Today

What’s the greatest frustration B2B marketers face with their marketing technologies? Which marketing techn...