Territory design isn’t just lines on a map—it’s the foundation of sales success. Yet, too often, it’s treated as an afterthought rather than a strategic growth driver. Poorly structured sales territory planning and territory management can lead to uneven workloads, missed opportunities, and frustrated sales teams, all of which directly impact revenue.
Up to 70% of B2B sales reps missed their sales quota in 2024, according to a B2B Benchmark Report by EBSTA. In addition, a field sales report found that 29% of sales reps feel that winning deals is harder than in previous years.
Here’s some good news. When done right, a well-balanced and data-driven approach to territory design can unlock new levels of efficiency, ensure fair distribution of potential, and ultimately fuel stronger sales growth. Here’s how:
The Impact of Balanced Sales Territories
Balanced sales territories are crucial to improving quota attainment because they ensure that sales reps focus on the right accounts. When opportunities are distributed equitably across territories, all your reps have a fair shot at hitting their targets.
Furthermore, territory design has become even more important in the era of remote selling. By moving away from purely geographic territories and adopting a more data-driven approach, businesses can carve territories that align directly with their strategic goals.
The benefits of this approach are immense. Not only does it create a more equitable distribution of opportunities, but it also helps reps stay focused on high-value deals. This leads to higher productivity and more predictable results.
Read more: The Ultimate Guide to Territory Balancing
Fair and Transparent Territories Drive Motivation
Sales reps are competitive by nature and sensitive about their account portfolios. The time they can dedicate to each deal is limited, and they rely on well-structured territories to ensure they’re working on the most lucrative opportunities. Without clear territory assignments, conflicts often arise, which detract from the rep’s productivity and morale. In the worst cases, disagreements about territories lead to sales rep churn, a costly issue that can drain company resources.
The Importance of Territory Planning Beyond Sales
It’s essential to recognize that territory planning should extend beyond sales. Many organizations only focus on sales when designing territories, but the truth is that other departments, such as Customer Success (CS), also require careful consideration.
Did you know 65% of a company’s revenue comes from existing customers? And the probability of selling (or upselling) to an existing customer hovers around 60% to 70%.
The rise of customer retention and upsell strategies emphasizes the need for thoughtful allocation of territories beyond just the sales team.
Unfortunately, many companies neglect to create data-driven territories for Customer Success, which can lead to imbalances that harm both the team and the overall customer experience. For example, one Customer Success Manager (CSM) might have a portfolio of large accounts that require extensive support, while another manages smaller accounts with minimal complexity.
Without territory management tools that balance workloads based on key metrics, the result is either burnout or underutilization, both of which hurt the overall customer experience and, ultimately, the company’s bottom line.
Read more: The Secret Weapon for Customer Retention and Growth: Account Routing
By investing in smart territory management, companies can ensure that CSM workloads align with the company’s broader strategy for customer expansion. This approach increases both the efficiency of the team and the satisfaction of your customers.
The Need for Territory Management Software
One of the best investments a company can make is to improve territory design and strategic territory carving for all revenue functions. The explosion of available data has created an opportunity to make smarter, more strategic territory decisions. However, dividing and managing territories based on complex metrics can be daunting, especially when relying on outdated methods like spreadsheets or time-consuming manual processes.
That’s where Territory Management Software comes in. Modern Territory Management Software automates the planning and management of territory carving, saving valuable time for the Revenue Operations (RevOps) team and allowing them to focus on strategy. These tools help companies optimize their territories based on the KPIs and metrics that matter most, ensuring that sales reps are assigned the most relevant opportunities, and ultimately helping the company meet (or exceed) its revenue goals.
Using Territory Management Software, companies can:
- Automate territory carving and rebalancing
- Create data-driven territory assignments aligned with company strategy
- Improve quota attainment by ensuring fair distribution of opportunities
- Minimize disputes and improve sales rep retention by offering transparent territory assignments
With the shift from “growth at all costs” to “sustainable growth,” companies are now focusing on profitability and maximizing the value of existing resources. Just imagine the impact on both your top and bottom line if each sales rep could be 5% more productive simply by having access to better, higher-value opportunities through improved territory management.
Read more: Territory Planning: Assign The Right Resources to the Right Opportunities
Territory Design Is an Investment in Sales Success
Territory design remains one of the most effective ways to boost sales performance.
By ensuring that territories are fair, balanced, and aligned with your strategic goals, you create an environment where sales reps can thrive. This results in higher quota attainment, better sales rep retention, and improved revenue outcomes.
To make the most out of your territory planning efforts, consider investing in Territory Management Software. These tools simplify complex territory decisions, improve sales productivity, and ultimately ensure that your revenue operations are set up for long-term success.
For more information on creating balanced territories, check out our ebook, The Ultimate Guide to Territory Balancing.
For more on how to create balanced territories, check out our ebook, The Ultimate Guide to Territory Balancing.
