Territory Planning Made Simple: Your Roadmap to Results

Building a Strong Territory Plan: Your Step-by-Step Guide

In today’s competitive sales landscape, having a robust territory plan is not just a strategic advantage—it’s a necessity. A well-thought-out plan enables sales professionals to allocate resources effectively, prioritize opportunities, and meet revenue targets. Think about it... the alternative to a good territory plan is litteraly improvisation !!

Here are 6 steps to build & execute a strong territory plan.

1. Start with Market Analysis

A strong territory plan begins with a clear understanding of the market. This step involves answering key questions:

What’s the market size? Assess the overall potential of your territory by analyzing industry reports, demographic data, and economic trends. Understanding the size and growth trajectory of your market sets the foundation for realistic goal setting.
How many accounts are in the territory? Break down the total number of accounts into current customers and prospects. This segmentation helps you identify where to focus your energy.
What’s the composition of Tier 1, Tier 2, and Tier 3 accounts? Prioritize accounts based on their revenue potential and strategic importance. Tier 1 accounts typically drive the majority of sales, while Tier 2 and Tier 3 accounts may offer growth opportunities through upselling or cross-selling.

2. Identify Business Drivers

Territory planning isn’t just about analyzing numbers—it’s also about understanding the dynamics shaping your market. Key considerations include:

• What is driving demand for solutions like yours?
• What important changes are taking place in the territory?
• What regulatory shifts or economic developments will impact your industry.
• Which markets or segments should you prioritize? Why?

Determine where your products or services can deliver the most value. This might involve targeting industries experiencing rapid growth or addressing pain points unique to a specific segment.
How well penetrated is your portfolio in the territory? Assess how many accounts are using your solutions and identify gaps. Opportunities often lie in deepening relationships with existing customers or converting high-potential prospects.

3. Conduct a Competitive Overview

Understanding your competitors is crucial to differentiating your offering and positioning your value proposition effectively.  Who are your key competitors? What are their their strengths, weaknesses, and market share within your territory.
What strategies are they using? Identifying competitor tactics—such as pricing models, promotional strategies, or customer engagement techniques—can inform your own approach.

4. Define Clear Goals and Metrics

A strong territory plan is built on measurable objectives. Set goals  that align with your company’s go- to-market strategy. For example:

• Increase revenue from Tier 1 accounts by 20% within the next fiscal year.
• Convert 15% of Tier 2 prospects into active customers by Q3.
• Improve portfolio penetration by introducing a new product to 25% of your existing customers.
• Track progress through key performance indicators (KPIs) such as: Revenue growth, Number of new accounts closed, Upsell and cross-sell rates, Customer retention and satisfaction scores, etc.
  

• 5. Develop an Actionable Plan

Execution is where many territory plans falter. Break your goals into actionable steps, such as: 

• Account prioritization: Use data to identify high-value accounts and allocate time accordingly. For instance, spend 60% of your time on Tier 1 accounts, 30% on Tier 2, and 10% on Tier 3.
• Resource allocation: Ensure you have the right tools, support, and budget to execute your plan. This might include investing in customer relationship management (CRM) software, hiring additional sales support, or providing targeted training.
• Activity planning: Map out daily, weekly, and monthly activities that align with your objectives. Regularly review and adjust your plan based on performance and market changes.
  

6. Review and Refine Your Plan

Territory planning is not a one-time exercise. Schedule regular check-ins to evaluate progress and make adjustments. Key questions to consider during reviews include:

• Are you meeting your goals? If not, what’s holding you back?
• Have there been significant changes in the market or competitive landscape?
• Are your resources being used effectively?

Building a strong territory plan requires a blend of strategic analysis, clear goal setting, and disciplined execution. By following these steps, sales professionals can optimize their efforts, drive growth, and achieve sustainable success. Remember, the key to effective territory planning lies not just in the planning itself but in the consistent refinement and execution of your strategy.