Anyone using a manual sales territory optimization strategy understands the traditionally challenging and tedious process. Optimizing territories properly requires a constant and continuous cycle of crunching numbers and watching every region with an eagle eye. Thankfully, many advancements in AI and algorithmic software prevent this process from becoming super happening this way any longer.

Users can continually update and improve their business thanks to automated territory optimization. Always look for software with an automatic process, especially ones that develop territory technology and provide the most advanced feature set in your industry.

A program with automated territory creation or optimization tools will allow sales team managers to complete these tasks within minutes instead of spending days finalizing the results. This process becomes streamlined and automated, saving you time and creating more effective territories overall.

Understanding the Automation Process

With traditional planning methods, many sales managers continue to navigate through unbalanced territory maps, as the energy required to monitor these areas continually is extensive. A sales territory plan needs continuous updating, which pushes the manager to spend more time on the task.

What is an Unbalanced Sales Territory?

Unbalanced sales territories are areas within a geographic location that don’t offer sales representatives equal opportunities to succeed. The unstable nature will frequently cause high employee turnover and lost sales opportunities.

For your sales team to become successful, there must be a fair allocation of resources and management of territories. Well-balanced territories maximize sales and profits by fairly distributing the workload and potential opportunity. It also allows better sales goals to be met and improves customer satisfaction.

What is Automated Territory Optimization?

Automated territory optimization is the process of generating territories and boundaries that maximize sales. It uses the accounts within the system and assigns them to salespeople based on defined constraints and metrics. These metrics include sales numbers, boundaries, market size, and documented potential. Instead of manually determining these limitations, third-party mapping software is used to automate the process.

The Benefits of Using Automated Territory Optimization Software

Maximize Your Sales

One mapping software that automatically determines territory optimization is Maptive. The software helps maximize your sales team’s motivation without extra input or influence from your team. It correctly matches clients and accounts to their potential, often increasing sales by 7% without other changes. Balanced territories also ensure that sales opportunities are balanced and equal and workload is divided.

Quickly Adapt to Change

Automated territory optimization allows territory managers to adapt to changes quickly and efficiently within the market. These changes include losing a salesperson and adding new markets, products, and customers. Managers will no longer have to manually balance the territories (slowing down productivity and business overall). Visualizing key metrics and risk factors is effortless, especially when deciding which factors could cost your company money.

Save Time and Money

By spending nearly 75% less time on territory design and planning goals, your staff will spend more time growing other critical areas of your business. With automated sales territory optimization, you’ll also reduce coverage overlap, leading to happier customers overall.

Increased Sales Productivity

The automated territory generation will integrate route planning tools to build territories based on a representative’s physical location. This slight shift in planning can decrease costs by approximately 15% while simultaneously reducing travel times. Many companies will see a 20% increase in their sales productivity with efficient territories.

Lowered Company Turnover

According to a 2016 survey, the average estimated cost of a sales representative is nearly $100,000. The automated process will reduce salesforce turnover directly caused by unequal opportunities, balancing the workload among all staff.

Increase Overall Revenue

Many companies using automated sales territory planning see an increase in revenue by identifying net upsell opportunities. When territories are unbalanced, opportunities are quickly missed due to the time commitment required. Sales reps don’t have time to cater to apparent leads. Balancing the regions will ensure all leads work in a time-sensitive and efficient manner.

Leveled Playing Field for All Sales Reps

The ATO allows business owners to develop an equitable environment for all sales representatives. Measuring each territory’s exact value helps others identify any imbalances effortlessly. Locate any salespeople struggling or high-demand areas that require more attention from your staff.