What is a sales territory?
A sales territory is the set of customers and prospects, usually defined by geography, that one rep or team is responsible for, together with the targets and visit plan that go with it; DashLeads puts 20M+ venues on one map, the raw material territories are cut from. A good territory gives each rep a fair share of opportunity and a workload one person can actually cover, so reps spend their time with owners.
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How territories are cut
Territories are cut on one of four bases, and most teams combine them:
- Geography: postcodes, districts or drive-time areas
- Account: named key accounts owned by one manager wherever their sites are
- Channel or segment: one rep for cocktail bars, another for restaurants in the same city
- Product: specialist reps for a category, such as wine or coffee
How to measure it
Once cut, a territory is balanced on two measures:
Workload = outlets to visit x visits per outlet per period x time per visit, travel included
Opportunity = potential of current accounts + potential of fit outlets not yet served
A territory is balanced when its workload fits one rep's available days and its opportunity is close to the team average. Cutting on outlet counts alone fails both tests: 500 outlets in a dense centre are a different job from 500 spread across a rural area.
Worked example
A sales manager splits one city between two reps.
| Centre territory | Suburban territory | |
|---|---|---|
| Fit outlets | 600 | 400 |
| Current accounts | 250 | 90 |
| Fit outlets not yet served | 350 | 310 |
| Visits needed per month | 180 | 110 |
| Average travel between visits | 10 min | 25 min |
| Days needed per month | 18 | 17 |
On outlet counts the centre territory looks 50% bigger, but once travel is included both need about the same number of days. The growth opportunity is similar too: 350 unserved fit outlets against 310. The split is balanced. A split on outlet count alone would have handed the suburban rep even more area and left the unserved outlets there unvisited.
Territory vs route vs call plan
A territory is the area and accounts a rep owns. A route is the order of visits on a given day or cycle inside it. A call plan sets how often each account is visited, its call frequency. A territory changes a few times a year; a route can change every week. Getting the territory right decides how much opportunity a rep has; getting the route right decides how much of the week is spent selling rather than driving.
Drawing territories on the whole market
Most territories are drawn from the CRM, which only knows existing accounts, so the unserved half of the market is invisible when the lines are drawn. Dashmote shows the full set of outlets with a fit score on one map, so the research is done before a rep sets out, marks the ones already in your CRM and lets you save areas and lists per rep. See sales territory planning, and the outlet hotspot map for where high-fit outlets cluster.
Frequently asked questions
What is the best way to divide sales territories?
Divide by geography first, then balance by workload and opportunity rather than outlet count, and move named key accounts to the people who manage them. Check that each rep's visits fit their available days, travel included.
How often should sales territories be redrawn?
Usually once a year with the plan, plus when a rep joins or leaves or the market shifts. Redrawing too often breaks the relationships between reps and owners.
How many outlets should one rep cover?
It depends on visit frequency and travel time, so there is no single number. Work back from available selling days, visits per day and the call frequency each account tier needs.
What is territory management?
Territory management is the ongoing work inside a territory: prioritising accounts, planning routes, setting call frequency and tracking results against target.
What is a balanced sales territory?
A balanced territory has a workload one rep can cover and an opportunity close to the team average, so targets are fair and no area is neglected.