One of the most important jobs a Sales executive has is designing Sales territories. Quality Sales Territories are built on a sufficient MIF assigned to the Sales Rep territory and……. the distribution of an equitable slice of the Company’s Net New business budget. This process is the approach that leads to the achievement of the desired Company equipment sales growth plan.

There are 4 required elements of building a fair sales territory.

The first required element is a realistic growth plan based on the market share the company achieved in the previous year.  Any company that is in a growth mode should be targeting a ½ point to 1 full point of market share growth as we discussed in a previous two-minute drill.

The second element is the Current customer mix of product, by segment, of the MIF of each existing Sales territory. Lower segment populated territories will require far more-base that higher-segment populated territories… so we need to evaluate the territory on this criteria.  We recommend that the average retail territory have a base that can generate $20,000 to $25,000 in current customer renewal business and an additional $5,000 to $10,000 in net new business opportunity

The third element is an understanding of how much of the company’s base… is term base business. Term based business is a combination of leased and bid business.  No one knows the upgrade timing of a purchased device; so… we recommend using term business as the criteria for the value of the MIF and let purchased equipment upgrades be the “cherry on top of the cake.

The fourth element is an understanding of the average selling price the company is realizing, by segment….. for black and white and business color devices.

Finally, once you have all of this information…. You would be able to run a report in PIVOT that tells us what that territory will generate in current customer renewal business and net new business.  Better yet, pivot will take a look at what penetration of market share this territory has achieved Anna sign an equitable peace of the net new business growth plan to that territory based on the penetration that territory currently has achieved.

Building quality Sales Territory assignments used to take weeks.

Now, in less than an hour, PIVOT will build you the most accurate sales territories your company has ever assigned.


Click here to learn more about PIVOT!


SOURCE Pros Elite Group

Pros Elite Group Continues Rapid Deployment of Its Explosive Sales/Service Benchmark Achievement Business Analytics Capability!