What is sales territory?
Sales territory is the term used to designate either a customer group or a geographical area on which a salesperson or a sales team will operate. For any company, it is essential to create a territory that is not only fertile but balanced. That is, it is essential that:
- The team or the salesperson is able to cover all existing opportunities and no one is overwhelmed;
- Having the right number of people to cover the areas, since leaving idle salespeople is a bad thing and increases CAC;
- Optimize the company’s sales force. That is, moving the person with the right characteristic to serve each of the different types of existing customers.
When these factors are in harmony, it is possible to find business possibilities little or nothing previously explored. If companies can be assertive when creating or exploring a sales territory, some benefits are possible and even immediate:
- lower cost to sell;
- complete performance evaluation of each seller;
- monitoring the performance of products and services;
- strengthening of the relationship between company and customer.
All of this is important to understand more and more the needs that the potential customer of the company has. And, from there, develop solutions that dialogue more and more with the pain that the consumer has.
How to identify and explore a sales territory in companies? See 4 strategies!
But, after all: how to create or identify a sales territory? Is simply going somewhere that the product or service is not yet enough? Well, that is half true. Some strategies are important for a company to be able to explore new opportunities. Therefore, we have separated 4 tips for your company to colonize this new sales territory and leave the fertile land for good business. Check out:
1 – Define focus and objectives
You can even believe that your sales process is round, taking advantage of the leads generated by marketing, qualifying and selling them. However, to really leverage a business, product or service it is necessary to go to territories that are still little explored. There are opportunities out there. Customers who have specific pains that your company can solve. Therefore, the first step is to plan your lead generation strategies aimed at these people. Okay, but how to do? Well, first start by analyzing the deals and deals closed in the sales territory closest to the new one you intend to explore. If a company is expanding into a particular region, start analyzing customers in the region as close as possible. Analyze the lost ones as well. You can do this with a survey, for example, or by simply addressing key customers in the region one by one. Prioritize customers that have to do with the business persona. For example: if your company sells payment machines for commerce. What is the ideal client? Let’s say it’s large supermarket chains. Okay. So get to them and investigate. This can be done in person, over the phone, at local fairs and events … Another thing: was it possible to speak to an influencer? Are they more accessible or less? It is important to know this when it comes to (re) designing the process. Then, cross-reference the data with the current territory that you already explore. What are the similarities? What are the differences. From there you start to calibrate your approach in the new sales territory that will be explored.
2 – Define the important activities
No company or team has achieved its goals and objectives just by thinking about them. Their compliance has always been guided by actions, activities, strategies and a guided sales routine. In your new sales territory, this remains true. What actions will make the company succeed in this new market? It’s time to tap into the recent information and metrics you’ve collected. Cross the current sales target and see what makes the most sense: keep it or adapt it? A number of questions can be asked to assist in this mission.
- How many new customers are needed to reach the goal?
- How many offers are needed to reach the number of new customers?
- How many demonstrations or meetings does it take to be able to send offers?
- How many phone calls, emails and messages does the SDR team need to make to qualify leads for meetings?
- How many new leads are critical to getting leads to be qualified by the sales team?
- How much will you need to spend (and what) to generate the necessary leads?
These indicators are fundamental and you can make a forecast based on what you already see your team doing today. It’s an estimate. After all, you still don’t know exactly how customers in this new sales territory behave. Perhaps the negotiation will be longer. The most time-consuming decision making. And this will reflect, in addition to the sales cycle, in increasing the number of contacts needed until the customer’s “yes” arrives.
3 – Prepare your CRM for the new sales territory
Sales CRM is a fundamental ally, indispensable for exploring and conquering new sales territory. It is through it that your team will work the lead in all stages of the pipeline and in several other types of funnel: The sales platform that your team uses needs to be structured to facilitate data capture and make visible all the opportunities that each employee has. Within CRM, consider the following strategies:
- Consider adding a pipeline only for this new sales territory in order to have the precise metrics for this new environment;
- Make sure that your CRM has automation and email templates and proposals to speed up the contact of each salesperson;
- Automate the distribution of leads in the pre-sales and sales funnel to not let any opportunity stagnate due to lack of action, etc.
These actions, added to the others that you already carry out with your CRM, are great for your process in the new sales territory to flow. If your CRM, however, does not allow or limit you in any of these tasks, then consider switching to CRM.
4 – Analyze the model and standardize sales
When salespeople in the new sales territory begin to succeed and establish themselves, it’s time to do some evaluations. Does the process implemented there have better points than the one used in other territories by the company? It is generally important to standardize the way a company sells. But, of course, to get new territory, a concession is always made here, another there. But, once established, which territory is more profitable? Yeah, well. It’s time to standardize knowledge – and managers can do that through the sales playbook, for example. It is essential to observe the conversion rates and understand the activities carried out in each phase of the sales funnel to interpret the results. In this way, you strengthen the company’s entire sales force and standardize the way you sell. After that, after conquering these opportunities, the company will be stronger to further expand its sales territory. So, how can we help you? If you are in doubt or want to know about how CRM helps companies expand their opportunities, feel free and…
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Enjoy and read two articles that will help your team to sell more and better daily. The first talks about the importance and how to do a market segmentation correctly. The second covers strategies, management and good practices in sales management in organizations. Good sales! A hug from CWT, your CRM. #RunCWT