Splitting A Sales Territory By Adhering to Fairness

While the concept of a sales team involves working together to strive for a common goal, the individual compensation usually generates competition over the best clients or the best region for selling.

A sales management team may want to devise a strategy for breaking up the different regions for their representatives, as a fair breakdown may lead to less competition and higher morale between the members of the sales team.

When a manager is trying to divide the sales territory they need to consider several key factors into the decision-making process. There needs to be a clear cut emphasis placed on whether it will be determined by geography, zip code, account size, product line and verticals, according to Barrett Riddleberger, the chief executive officer (CEO) of Resolution Systems, Inc., a sales training and consulting firm.

“You have a finite amount of time and want to leverage it well to maximize return on your time,” said the executive.

Along with the initial glance at the factors that may differentiate clients, it is important to minimize travel and money spent on each sale, according to Selling Power.

The sales management team needs to take a look at the customer and target market lists in order to begin to prioritize the clients. While the immediate concern is splitting the customers between salespeople in an appropriate manner, this is a time when potential buyers can be examined based on their value to the company, noted Riddleberger.

“You want to make sure when you’re making the call, you’re making the most out of that call and are talking to someone who fits your ideal customer profile,” said the executive. “You want to go through this exercise so you know who you want to contact and who you want to avoid.”

Each client is worth money and time to the company, but one has to determine how much they will be willing to devote to a single customer. If they are located across the country and want face-to-face meetings, it may not be fiscally responsible to have representatives fly back and forth, according to Riddleberger.

Multiple clients in the same location may provide a chance for a single representative to meet with both customers, while minimizing the amount of company money that is spent on their travels, noted the executive.