Sales Forecasting Common Territory Strategies - Sales Forecasting

What are the common strategies of Sales Territory?

The sales strategies differ from company to company depending on some of the factors. The appropriate strategies need to be identified and considered. Once the strategies are identified, an analysis needs to be done regarding the existing customers and new prospects. The customers are analysed for determining the overall significance of the customers and the prospects.

More time need to be spent on the tasks that are considered as possessing highest significance and accordingly the boundaries are defined. Three different ranking groups are used for categorizing the prospects. They are 'Bigger Value'', ''Medium Value'' and ''Smaller Value” which are tabulated below -

Size of the Prospect
Value Associated with It
Greater than $1,000,000
High
From $500,000 to $1,000,000
Medium
Less than $500,000
Low

The figures used in the table are not fixed and they vary from industry to industry. The value that is being determined to a prospect by considering some of the prospects which can have a great influence of the new business prospects -

  • When a new buyer with a capacity of increasing the process or slow down the process of buying can take over the market.
  • Within the specified time, when customer fails to provide the solution.
  • For a specific period of time, when customer is into an agreement with another supplier.
  • Delay in new purchases by the customer who are engaged in the process of mergers and acquisitions.
  • When more people are involved in the buying or selling process of an organization.

When a demonstration or a product sample is requested by a client, the customer is said to be in the evaluation stage and the sales person is said to be passed through the discovery stage to presentation stage. In this discovery stage usually a sales person usually assess the needs.

The factors that being identified and related to the sales structure or the sales cycle and hence they are termed as cycling prospects. Depending on priorities the opportunities are categorized. The sales person and the manager need to assess their position in the process of sales.

A territory strategy is developed by considering the following aspects -

  • The customers are managed by adopting the techniques that go in accordance with the business environment. For instances the sales regulation strategies are adopted by not only considering the customer status with that of the prospective customers status, but also consider the volume of the existing customers when compared to the volume of the new customers.
  • The capacity of the sales team i handling the prospects may range from a low of 0 prospects to a high of 1000 prospects as well. The sales team should be advised and guided by the manager in utilizing the time to its maximum extent.
  • The actions taken by each of the team members need to be agreed by the rest of the team along with the manager and all the actions should be recorded. This gives the manager a clear picture about how the prospects are being handled by the sales person and the territory that is being assigned to a specific sales person.

It is very essential to manage the time and use the time in most productive way. As time management is an important factor for developing the strategies for identifying the most values and highly significant customers and is an essential factor in designing the territory planning.

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