Prevent a Revenue Miss – Take a Closer Look at Your Territory Alignment

Today we're going to discuss territory alignment and demonstrate how to balance customer requirements, company revenue expectations and sales rep workload to grow revenues. As a guide to the discussion, download our 10th annual workbook, How to Make Your Number in 2017. Turn to the Sales Strategy section and flip to the Territory Alignment phase on pages 299 – 303 of the PDF.

Joining us today is Jim Mears, the Senior Vice President for Motorola Solutions. Jim is responsible for the go to market teams in the U.S. and Canada. Motorola Solutions provides mission-critical communications products and services to public safety and commercial customers around the world. This is done by providing them with real-time information, and by arming them with nearly indestructible handheld devices. Jim is uniquely qualified to demonstrate how to balance customer requirements, company revenue expectations and sales rep workload to grow revenues.

Why this topic? Some reps only make their revenue objectives by selling to the easy accounts. Yet others are spending too much time with accounts that do not fit the ideal customer profile. Yet still some sales reps have so many accounts to cover that they cannot serve all of them correctly. We call this territory misalignment and it is a common cause of missed revenue targets.

Would you like to balance your territories better or take a fresh look at what the customer requirements are? How about a debate around what the revenue expectations should be by patch and look at data to understand what the workload is at the sales rep level and how to match that up with the requirements of the territories themselves? If that's an exercise that you think might help you increase the probability of making your number, consider coming down to The Studio and spending time with us. I will put a room full of experts in the room and we'll dive into your data and you'll leave with optimized territories.

Listen as Jim describes how Motorola adapted to changes in buying trends. It became evident in some areas that it probably didn't justify any longer a pure direct rep. Jim describes how he observed the trend and how he adjusted serving the audience through a combination of direct representation and manufacturer reps. These partners rounded out the offering to customers on the service side and as sales agents for the company. Jim discusses the objective criteria used when creating a territory. The first criteria include revenue in the territory, second was the level of competition, buying history, buying behavior, the post-purchase service needs, and finally the concept of the customer life cycle.

The final element involves understanding when a customer needs to engage with a salesperson and when maybe they don't. In Motorola's case, the customer engagement needs represent a five to seven-year cycle. In your company, it might be five to seven months’ cycle. Those are examples of objective criteria that you might use to design your territories. Are those the right ones for you? Maybe, maybe not. You need to understand what matters for your business and come up with your objective criteria when developing territories. Listening to Jim’s use case will help you think through the right criteria for your company.

Territory misalignment is a common cause of missed revenue targets. Download our 10th annual workbook, How to Make Your Number in 2017. Turn to the Sales Strategy section starting on pages 258 of the PDF. If you would like to spend some time with me on this subject, come see me in Dallas at The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. A visit to The Studio increases the probability of making your number because the sessions are built on the proven strength and stability of SBI, the industry leader in B2B sales and marketing.