Overview - Sales Territory Process - HubSpotcdn1.hubspot.com/hub/23541/file-13476511.pdf ·...
Transcript of Overview - Sales Territory Process - HubSpotcdn1.hubspot.com/hub/23541/file-13476511.pdf ·...
Overview - Sales Territory Process
Questions you need to answer Is your existing customer account base segmented?
How can you determine true territory potential?
Are your territories optimized and balanced?
Are territories aligned with individual rep targets or quotas?
Does your CRM capture your territory potential, preserving key institutional market knowledge when reps leave?
Territory Optimization Goal
Balance work load Spread Prospects, Opportunities and Customers
evenly Improve forecast accuracy Improve win rates Align sales capacity with market potential
Territory Design Process
Step 1
Baseline Current Perf
Step 2
Analyze Existing
Customer Spend
Step 3
Determine Market
Potential
Step 4
Map Prospect / Customer
Data to Territories
Step 5
Produce Territories
Step 6
Review and Refine
Assignment
Objective Establish a sales territory design that optimizes and aligns sales capacity with
market potential
Step 1 – Baseline Current Performance Best Practice to analyze and understand by Territory/Rep:
1. Win Rate – Understand and measure this in the future
2. # of Opportunities
3. Pipeline Revenue Forecasted
Understand Quota Attainment impact on rep by rep basis
Account Region Account Executive # of Opportunities Pipeline ($
Millions)
Forecasted
Pipeline Revenue FY11 Quota Gap ($) Gap (%)
Asia Pacific Rep 1 11 $41.0 $13.1 $13.5 -$0.4 -3%
CALA Rep 2 6 $11.1 $3.5 $1.3 $2.2 172%
Rep 3 27 $37.8 $12.1 $39.0 -$26.9 -69%
Rep 4 7 $46.0 $14.7 $10.4 $4.3 42%
Rep 5 11 $24.5 $7.8 $10.4 -$2.6 -25%
Europe Rep 6 9 $18.9 $6.1 $7.8 -$1.7 -22%
India Rep 7 7 $16.4 $5.3 $13.0 -$7.7 -60%
Rep 8 17 $19.3 $6.2 $5.0 $1.2 23%
Rep 9 20 $41.8 $13.4 $52.0 -$38.6 -74%
Rep 10 14 $65.9 $21.1 $20.0 $1.1 5%
Middle East/Africa Rep 11 7 $18.9 $6.0 $10.0 -$4.0 -40%
Rep 12 3 $11.3 $3.6 $12.0 -$8.4 -70%
North America Rep 13 10 $5.2 $1.7 $7.8 -$6.1 -79%
Rep 14 19 $16.7 $5.4 $14.3 -$8.9 -63%
Rep 15 12 $14.5 $4.6 $7.8 -$3.2 -41%
Rep 16 3 $4.7 $1.5 $11.0 -$9.5 -86%
Rep 17 10 $18.9 $6.0 $11.0 -$5.0 -45%
Key Account Rep 18 2 $1.5 $0.5 $3.9 -$3.4 -87%
Grand Total 195 $391.8 $125.4 $325.3 -$199.9 -61%
Step 2 – Understand Spend by Customer
(1) Total Sales (USD) Captures multi-year customer spend
Significant change in Median Customer Spend at the 1,000 employee threshold and again at 2,000 employees
Phase 3 – Prospect DB – Build Steps Evaluate Existing Customer Spend
Cut by multiple level and layers
1. Revenue
2. Industry
3. Geography
4. Number of Employees
5. Number of Locations
Determine what “Drives” the spend. As you review data, ask yourself which of the firmographic elements above show a high affinity towards higher spend
Step 3 – Build and Forecast Prospect Potential DB Prospects included based on:
# of Prospects x Customer Spend = Territory Potential
Step 3a – Forecast Spend Potential Evaluate customer potential in relation to Total Prospect Employees
Step 3b – Forecast Spend Potential Future iterations should include added precision of:
Potential spend by Revenue
Step 3c – Forecast Spend Potential Future iterations should include added precision of:
Potential spend by # of Subscribers by Operator by Country
Example of Brazil
Phase 3d – Final Forecast to Predict Potential
Company (Prospect)
Annua l
Rev
Number of
employees Customer Size Bucket
Forecasted
Sa les
Amp Group Holdings Limited 963$ 2,014 >=2,000 Empl $ 587,193 Pgg Wrightson Limited 954$ 1,995 >= 1,500 and <2,000 Empl $ 277,170
Goodyear Tyres Pty Ltd 924$ 1,937 >= 1,500 and <2,000 Empl $ 277,170
Dp World Holdings (Australia) Limited880$ 1,852 >= 1,500 and <2,000 Empl $ 277,170
Tbp Group Pty Ltd 872$ 1,836 >= 1,500 and <2,000 Empl $ 277,170
Bandelle Pty Limited 872$ 1,836 >= 1,500 and <2,000 Empl $ 277,170
Suncorp-Metway Ltd 8,592$ 16,953 >=2,000 Empl $ 587,193 Manningtree Investments Pty Limited859$ 1,811 >= 1,500 and <2,000 Empl $ 277,170
Input data to regression. Use if R-
Square is >65%
How to read a regression
equation, then use formula to predict sales
$- $50,000 $100,000 $150,000 $200,000 $250,000
10
20
40
63
90
130
200
244
308
403
550
790
1135
1600
2000
2900
3969
5928
8563
14900
34726
85960
Annual Customer Spend
Cu
sto
me
r Em
plo
yee
s
Customer Employees vs. Customer Spend
Total Employees Linear ( Total Employees )
Step 3e – Peak Performance Replication
Stretch Frontier
80th Percentile Frontier
Step 4 – Map information to territories Territory Pot = Existing Customer Base + Pipeline + Prospects
Overlay 3 Components and remove duplicates
Produce Territories with concise geographic boundaries:
Territory Rep # of
Opportunities
# of
Prospects
#
Customers
Total Territory
(# of accounts)
Territory Size
($M Potential
Spend)
Terr #1, N.
America John Smith 71 432 12 515 $192.0
Step 4a – Produce Balance Territories
Phase 4b: Optimizing Territories 141 customers selected (Blue Zips highlighted)
Geographic Analysis shows that 141 customer are in targeted area.
Note that you can change Territory boundaries by dragging and
dropping.
Step 5 – 6: Produce and Refine Territories Understand Potential Distribution
Prioritize Accounts in each Territory
Best Practice: Assure reps with largest work capacity and historical win rate get largest Territorial Patch
Know Prospect density
Heat Map Identifying Opportunities + Prospects by Geography
Input to: Territory Sizing Calculator
Data
Assumption
Territory design calculator
Sales Territory Design Questions
1. Have you segmented your existing customer base?
2. Do you understand what drives customer spend?
3. Have you used customer spend knowledge to flesh out market potential?
4. Does your knowledge of the above impact forecasting accuracy?
5. Are your territories balanced?
Questions can be sent directly to:
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Read More Sales Territory Blog Posts: http://www.salesbenchmarkindex.com/?Tag=Territory+Design
Further interest….