Territory Management
What is Territory Management?
Territories organize accounts and leads based on geography, industry, company size, or product specialization. Proper territory design balances workload, maximizes coverage, and minimizes conflicts.
Territory Types
Geographic Territories
- Definition: Based on zip codes, states, or regions
- Example: "Northeast Territory" (NY, NJ, CT, MA)
- Pros: Clear boundaries, minimizes travel
- Cons: Uneven account distribution
Account-Based Territories
- Definition: Strategic accounts assigned by revenue potential
- Example: "Enterprise Accounts" (Fortune 500 companies)
- Pros: Focus on high-value customers
Industry/Vertical Territories
- Definition: Organized by sector (Healthcare, Finance, Retail)
- Example: "Healthcare Vertical" covers all hospitals nationwide
- Pros: Deep industry expertise
Product-Based Territories
- Definition: Specialists for specific product lines
- Example: "5G Network Solutions" team
Territory Assignment Rules
Automatic Assignment:
- Rule 1: Account ZIP code 10001-10999 → Northeast Territory
- Rule 2: Account revenue > $1M → Enterprise Team
- Rule 3: Account industry = "Healthcare" → Healthcare Specialist
- Priority: Rule 2 overrides Rule 1 (Enterprise team gets big accounts regardless of location)
Territory Hierarchy
- Level 1: Global (All accounts)
- Level 2: Regional (North America, EMEA, APAC)
- Level 3: Country/Area (USA, Canada, Mexico)
- Level 4: Territory (Northeast, Southeast, Midwest, West)
- Level 5: Sub-Territory (New York Metro, Boston Area)
Territory Alignment & Balancing
- Account Count: Each rep should have 50-100 active accounts
- Revenue Potential: Balance total territory value ($2M-$3M each)
- Workload: Consider travel time, account complexity
- Reassignment: Quarterly reviews, realign if rep leaves
Example: TelecomCo Territory Structure
Western Region Territories:
- Territory A (San Francisco): 75 accounts, $2.5M potential, Rep: Alice
- Territory B (Los Angeles): 90 accounts, $2.8M potential, Rep: Bob
- Territory C (Seattle): 60 accounts, $2.2M potential, Rep: Carol
- Enterprise Overlay: 10 Fortune 500 accounts, $5M potential, Rep: David (covers all Western Region enterprise accounts)