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Top Considerations for Sales Territory Planning

Territory planning can boost or burden your entire sales cycle. Learn how one company was able to create strategic, profitable territories with automation.

5 min read

For companies of all shapes and sizes, effective sales territory planning is critical for your sales success. Bob Malandruccolo, an expert in territory analysis and definition, explains: “Territory planning is the blocking and tackling for sales performance management.” Without effective territory planning, it’s impossible to get into your revenue end zone. In Commvault's journey to transformed territory planning, Malandruccolo identifies top considerations every sales organization should know.

Serving as Director of Sales Operations in the Americas for Commvault, a recognized global leader in enterprise backup, recovery, and data management, Bob has years of experience in territory design. He recently joined Xactly in the webinar: “Proven Practices for Effective Sales Territory Mapping in 2019” and shared some of what he’s learned along the way.

According to Malandruccolo, “Companies can’t do comp plans until they have quotas—and can’t do quotas until they have territories.” Effective territory planning drives accurate quota allocation, ensures achievable incentives, and increases sales retention.

As the critical first link in the sales performance management value chain, territory planning has the ability to boost or burden your entire sales cycle. 

In today’s sales landscape, built-for-purpose territory mapping is proven to enable sales teams to improve process efficiencies and increase quota attainment. Be that as it may, 2018 research from the Sales Management Association still shows that 83% of organizations continue to design territories with error-prone, ineffective spreadsheets.

For those leaders in sales operations, like Bob, who have experienced territory planning with data-driven and intuitive automation—there is no going back. 

The Commvault Story

Malandruccolo explained that when he first joined Commvault’s sales operations team, the organization was using Excel spreadsheets to manually plan out sales territories - a time-consuming and labor-intensive process. Territories were assigned to reps based on zip codes and the geographies’ estimated opportunities. 

However, as Malandruccolo’s team prepared for a new and larger segmentation project, they quickly realized that the company’s existing territory planning approach would be inadequate—manual processing was no longer a viable option. 

In addition to the high risk of data errors, using spreadsheets for territory planning limited their ability to adapt efficiently to various types of growth—including accommodating for new reps, product launches, etc. Malandruccolo’s team was also frustrated with the amount of time it took to roll out and implement changes to the existing territory plans.

Territory Planning with AlignStar

For Malandruccolo and his team at Commvault, Xactly AlignStar delivered their desired functionality—including a map-based interface, ability to leverage third-party data, automate territory optimization, and include “what-if” scenario functionality. Xactly offered the best solution in terms of ease of use and adoption. 

Malandruccolo reflects that selecting Xactly AlignStar from among others was not a difficult decision. Mapping software wasn’t an option. Mapping (or routing) software lacks the ability to easily align and realign territories—which is key to effective territory planning. 

Additionally, while other built-for-purpose solutions did exist, they couldn’t compare to Xactly AlignStar in terms of ease-of-use and functionality. With Xactly AlignStar, Commvault could create and test different territory scenarios and easily and quickly implement changes to sales territories—and do it all within an intuitive, visual mapping interface.

To hear the full webinar audio, including implementation details and audience questions, click here.

Or see a snapshot of the Commvault + AlignStar story, download the brief case study here.