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Territory Planning - The Sales Journey.com
- 1. How to Guide :Territory Planning Plan your work, work your plan The Sales Journey – 2013 www.thesalesjourney.com
- 2. Why do I need a territory plan ? • Why do a Territory Plan ? • Take control of and own the outcome for your territory • Your territory is your business • Take control of your earning potential • Your sales manager asked you for one • A Territory Plan will • Give you greater focus • Greater productivity • Maximise Results • All Sales Professionals need a territory plan regardless of role The Sales Journey – 2013 www.thesalesjourney.com
- 3. Think of it like golf… The Sales Journey – 2013 www.thesalesjourney.com • The Golf Championship • 4 rounds x 18 holes = 72 holes • 14 clubs in your bag • Each hole is different • Length, bunkers, water, trees, greens, wind direction, noise from the gallery • Each day is different • Weather, How is the competition playing, Any injuries, feeling under pressure…. 1m putt on 72nd green to win • Want to finish on top of the leaderboard… you need a game plan.
- 4. Case Study Example 1 : Individual Rep An Individual rep responsible for Public Sector vertical at a state level, returning$30m+ revenue per annum. Highly competitive territory Selling software and professional services Single account manager plus shared sales support resource FY 10 Actual $500k GP FY 12 Actual $1.3M GP Growth 260% A detailed territory plan was developed and reviewed monthly by the rep themselves, and myself as sales manager. The Sales Journey – 2013 www.thesalesjourney.com
- 5. Case Study Example 2 : StateTerritory Competitively incumbent territory. Competitor had ‘owned’ the territory for 10 years. Our team enjoyed a massive sub 10% share of wallet from the customer base. A territory plan was developed closely following this structure and within 12 months of committing, and effectively executing the plan our team had realised 55% market share, which was sustained and grown for the next 3 years. These marketshare figures were independently verified by the customer. Territory won 45 net new accounts during the 12 month period. The Sales Journey – 2013 www.thesalesjourney.com
- 6. Territory Planning Process 1. Understand your Objectives 2. Dissect your Market 3. Chunk it down into ‘bite sized’ pieces 4. Define and Align all available resources to cover your patch 5. Assign quantifiable segment targets and growth 6. Map the segment targets to your overall full year objectives 7. Introduce adequate contingency planning The Sales Journey – 2013 www.thesalesjourney.com
- 7. Where do I start ? • Understand your Business Objectives / Quota (revenue / profit / growth) • Any other quantifiable objectives / KPIs • Ask for a history / trend line (last 3 years) • Define your Territory / Market • Create customer segments where possible • For example by industry / geography / size • Develop a coverage strategy • Clearly understand what resources you have available to cover the patch • You MUST understand what their individual business objectives and KPIs are The Sales Journey – 2013 www.thesalesjourney.com
- 8. Where do I start ? • Create a business plan for each customer segment • Establish your own quantifiable targets for each segment (rev / GP / growth) • Map Segment targets to your full year quota • Build a level of flexibility into the plan • Sales people are typically an optimistic lot ! The Sales Journey – 2013 www.thesalesjourney.com
- 9. Understand your business objectives • History / trends • What did the territory do last year ? – run a sales report • How fast is the market growing ? • How fast is the territory growing ? • Allocating targets by key account and segment • What are the major sources of revenue • Product – hardware / software • Services – Project • Services – recurring and contract The Sales Journey – 2013 www.thesalesjourney.com
- 10. Understand your business objectives • Market Share • How much share do you have relative to competition ? • Recent shifts – up or down – how is it trending ? • New entrants ? • Your hardest sell will be your Sales Manager ! The Sales Journey – 2013 www.thesalesjourney.com
- 11. Territory Definition – you need one • Clarify your territory down by defining market segments • Break it into manageable ‘bite sized’ chunks • Create ‘work units’ with quantifiable objectives • How do you do this ? • Profile your market • Look for common threads • Industry / market / geography / size • Identify and map the industry ‘influencers” • Consultants, Application Providers, Competitors The Sales Journey – 2013 www.thesalesjourney.com
- 12. Territory Definition – you need one • Prioritise the Segments • 80:20 will apply • Which are the growth segments • Which segments require investment vs return • Start thinking about a plan to gain support for the investment The Sales Journey – 2013 www.thesalesjourney.com
- 13. Develop a Coverage Strategy • Establish your “territory” team both internally and externally • Pre-Sales • Architects • Management • Executives • Business Partners • Application Providers • Consultants • Other influencers The Sales Journey – 2013 www.thesalesjourney.com
- 14. Develop a Coverage Strategy – How ? • Assess resource bandwidth • Capacity & Capability • Expertise & Attitude • Accountability • Define roles and responsibilities • Agree segments and objectives • Define communication and reporting process • When ? How often ? Who ? • Map team resources to your defined Market Segments • Ensure you have buy-in from the team • Clear and frequent communication is key • Give the team on course updates The Sales Journey – 2013 www.thesalesjourney.com
- 15. Segment Business Plans • Establish quantifiable targets for each of your market segments • Targets based on opportunity size • Targets should be SMART • Align resources to each segment • Map skills required for each segment • Leverage your manager and existing relationships • Call out the gaps The Sales Journey – 2013 www.thesalesjourney.com
- 16. Segment Business Plans • Map discrete segment targets to overall full year number • At this point • The sum of your segment targets should be greater than you full year target • If not go back to step 1 and review • Create a Gap Plan • Bridge gaps related to • Target coverage (none should existing at this point) • Skills / Coverage • Accountability The Sales Journey – 2013 www.thesalesjourney.com
- 17. Segment Business Plans • Define actions to bridge gap • New Offerings • Demand Generation programs • Seeding market • Investment The Sales Journey – 2013 www.thesalesjourney.com
- 18. Build ‘flexibility’ into your plan • You need to be able to respond quickly and appropriately to any and all of the following : • Resource Changes • What if your key pre-sales person is promoted ? • Competitive Forces • Set competitive ‘traps’ • Create Sales Cycles yourself • Market Variability • Diversify and Balance your territory • What contingency planning is allowed for in your plan ? The Sales Journey – 2013 www.thesalesjourney.com
- 19. Just to recap • Understand your Objectives • Dissect your Market • Chunk it down into ‘bite sized’ pieces • Define and Align all available resources to cover your patch • Assign quantifiable segment targets and growth • Map the segment targets to your overall full year objectives • Introduce adequate contingency planning The Sales Journey – 2013 www.thesalesjourney.com
- 20. So what are you waiting for ? Plan your work, work your plan Goto…..thesalesjourney.com
Editor's Notes
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory. This should also be included in the blog post.
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory.
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory.
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory.
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory.
- Note if you have a gap in target coverage at this point you need to ask your sales manager for more territory.