Within many organizations, territories and quotas are not aligned in an impactful way to ensure that revenue targets are reached.  In order to make sure that your company doesn’t fall into this category, it’s important to take into account all of the data that is available to better understand how territories and quotas need to be aligned.  You don’t want to dive into your territory and quota planning process with a lack of understanding in what data points are necessary to determine how territories and quotas can be aligned to impact sales results.

Territory optimization should properly segment customers and prospects based on historical data, product saturation, competitor saturation, and where marketing dollars are being spent, geographically, by vertical, etc.  However, they’re often left out of the planning process because the data isn’t available.  This is the basis of real territory management, which leads territories to be optimized for maximum revenue potential and a scientific approach to quota distribution.

Once the territories are optimized you can easily see where you lack sales coverage to handle the value, or where you have too many reps.  Sales capacity planning becomes scientific.  As a result the distribution of quotas can take into consideration the accurate value, in order to allow companies to translate budget guidelines from finance into credible targets for sales.  By doing this companies are better able to align quotas to their business objectives to ensure revenue targets are reached.

But the road to optimized territories can be long and winding.  That’s why we put together an infographic that shows how complicated the path can be, but also highlights the return you’ll get when you follow the road to the end; optimized territories can lead to a 5% increase in revenue.

Related Posts

Tips for Effective 2014 Territory and Quota Planni... It’s planning season for sales operations departments, the time of year when territory assignments, quotas, and compensation plan changes are consider...
A Guide to Territory and Quota Planning Territory and Quota Planning Over the past couple of months we have written extensively about effective territory optimization and quota distribution...
3 Benefits to Sales Territory and Quota Management By Amanda Silvernale Product Marketing Manager, CallidusCloud In an ideal world, designing territories and distributing quotas based on corporate ...
How Much Money are You Giving Away by Managing Sal... If you have a sales force of bigger than a few reps, you have territories. They were first introduced to reduce confusion and help maximize sales prod...