Sales areas keep growing when a company is expanding fast. If your current sales limits aren’t getting bigger, it’s a good idea to review how things are set up and find ways to serve your customers better.
That’s where the
You might have many questions, but we have got you covered. We will give you all the info you need to optimize your sales territory, explaining why it’s important and the benefits you will enjoy once it’s done.
What is Territory Optimization and Why It is Important
In businesses, you need to make sure that your sales team and resources are used effectively in a specific area to get the best results.
Territory optimization is a common practice to achieve this goal. Businesses do it for various reasons, such as reducing costs from inefficient routes and expanding territory coverage.
All of these factors can directly or indirectly affect how much you sell, how happy your customers are, and how content your staff feels with their work.
If you want to avoid making these mistakes, it’s a good idea to regularly optimize your territory. You can do this in two ways: by doing it manually or using a tool.
Doing it manually takes time and effort, and you might not do it as well as you could. But if you use a tool, it becomes much easier to make improvements.
These tools display a map with all the data from Dynamics 365 CRM. You can create a unique area by drawing it by hand, using shapes, or dividing it into sections like cities or states.
These mapping tools give you more control over the whole process and help you create balanced areas. When you divide customers by territory, it’s easier to assign tasks to your sales team.
Advantages of Optimizing Your Territory
Now, let’s explore the benefits of optimizing a territory using MappyField 365.
- Boost in Revenue
By simply adjusting your sales territory, you can increase your sales revenue by up to 7%. What causes this increase in sales?
The mapping tools create well-balanced territories that evenly distribute customers, eliminating coverage gaps.
When you assign territories to your sales team, they can divide the work evenly, allowing sales representatives to spend more time getting to know their prospects.
When prospects feel valued and well taken care of, your business can expect:
- More closed sales
- Positive feedback
- Increased referrals
- More upselling opportunities
These positive outcomes all contribute to a significant boost in revenue. Improving your territories offers additional benefits, but the increase in revenue alone is a compelling reason for businesses to consistently and strategically optimize their territories and make use of supportive technologies.
- Cost Reduction
In addition to increasing revenue, cutting costs is another way to boost your overall profit. Your resources are valuable assets for your company, and how you make the best use of their skills is crucial. One effective method for this is territory management and optimization.
The market is constantly changing, and this means you must adapt your strategies regularly because what works today may not work tomorrow. For example, if a new competitor enters the market, consumer preferences may shift, and your customers might prefer their products over yours.
This dynamic nature of the market means that your customer base changes over time. A fixed number of sales representatives can’t cover a territory effectively for an extended period. You need to adjust the resources allocated to an area.
By using a mapping tool, you can continuously modify territories, ensuring that sales agents don’t need to exert excessive effort or struggle to meet their monthly goals due to a shortage of clients to reach out to.
Additionally, mapping technologies provide sales representatives with routes that save on mileage. Less travel distance results in lower fuel consumption and reduced costs. So, when you have the right number of resources distributed across the territories, your expenses will significantly decrease.
- Time Savings
Dividing the world into sales territories can be a time-consuming task, making it a challenge for sales teams. When territories are large, sales representatives have to travel more and spend more time reaching their clients.
On the other hand, if territories are small, sales representatives may not have enough clients to justify their time and travel costs. So, the key is to find the right balance between time, expenses, and the number of clients.
This is where MappyField 365 can help you create territories that consider travel duration and ways to reduce it. It benefits both your sales team and, of course, your business.
- Enhance Sales Reps’ Efficiency
Being a sales representative can be tiring. They spend a lot of time traveling from one client to another, which can be draining. This process can make it hard for a business to find and keep replacing workers if staff members start leaving.
However, territorial optimization can reduce burnout rates. With optimized territories, you can assign an equal amount of work to each sales representative, giving everyone a fair chance. No sales representative has to work extra-long hours to keep up with the workload. This allows them to give each client or prospect the attention they deserve, ultimately maximizing sales in their designated area.
When territories are not distributed fairly, it directly affects the performance of the sales team, potentially leading to a 14% drop in revenues. Therefore, optimized territories help distribute tasks more fairly, giving all sales professionals an equal opportunity to succeed in their roles.
- Enhance Customer Experience
Businesses aim to build long-term relationships with their customers. When you, as a business or your sales team, have a positive connection with customers, it makes them comfortable making purchases from you. These relationships also attract new customers, helping turn them into loyal ones.
When sales representatives are overburdened, they may not have the extra time to nurture these relationships, potentially leading to a decrease in customer satisfaction.
There are various tools available, but not every tool suits all types of businesses. You can try MappyField 365’s free trial version to see if it meets your business requirements. If you need any custom changes to the plugin, inquire at firstname.lastname@example.org. After considering all these aspects, consider subscribing to our plan to improve your sales team’s workflow.