3 Reasons to Drop Manual Sales Territory Planning for Good

Learn everything you need to know about why automated sales territory planning is imperative to take advantage of your sales landscape and selling potential. 

5 min read

When it comes to sales performance management (SPM) functions, the difference between “nice to have” and “need to have” can seem difficult to determine. There’s no doubt that sales performance has the most tangible effect on your business success, and yet, deciding where and when to invest in your sales process can seem both risky and convoluted. Sure, you know you need ICM to handle accurate and timely payments, but do you really need automated sales territory planning as well?

Yes, you do, but let me prove it to you.

Although automating technology for territory design can increase your sales up to 20 percent, territory planning is often categorized as a luxury in SPM—instead of as the necessity it is. This misconception can cost far more than you may realize. Integrating automated sales territory planning into your SPM is absolutely imperative in taking full advantage of your sales landscape and selling potential.

Let’s look at three reasons the words here, “absolutely imperative,” are not an exaggeration—and why it’s time to drop manual sales planning for good.

1. Your ICM is getting lonely

By now, we can all agree that automating incentive compensation management (ICM) is exponentially more effective than using excel to manage sales comp. In fact, it happens to be the key driver in SPM ROI. Unfortunately, territories that don’t offer the right potential will never be able to be fully effective (no matter how wonderful your incentive program is). By integrating territory planning with your ICM, you can ensure the value of your sales territories, and therefore ensure the value of your sales compensation. Likewise, by integrating your ICM and territory planning functions you can actually create fair and achievable quotas for your sales reps.   

2. Your sales reps will thank you

Speaking of reps, assigning territories that are too large or too small can have huge implications on quota attainment, team motivation, and rep attrition. The Sales Management Association 2018 research update determined that companies that are able to effectively measure territory design data have eight percent higher sales objective achievement. Eight percent is by no means an insignificant amount—and one that is sure to impress both your reps and your stakeholders. Investing in sales territory planning will help you avoid a dissatisfied, unproductive rep team and the resulting lost sales.

3. Your opportunities will expand

Companies that optimize territory size and deployment can drive up to 20 percent revenue lift, according to the Alexander Group. By investing in territory planning, you can easily identify, design, and cultivate sales opportunities in a way that enables your reps to do their best work—and maximize every square inch of their assigned territories. This gives your team the competitive advantage it needs to increase efficiencies and revenue. When you integrate sales territory planning with your other SPM functions, you are better able to save time, improve ROI, and stop process frustrations and data inaccuracies from getting in the way of your expanding business.

So the question is, can you really afford not to take full advantage of your sales territories? Learn more about how to integrate Xactly Alignstar into your SPM portfolio. It’s time to stop ignoring automated sales territory planning—and start reaching your team’s full potential.