It's not too early to start thinking about how design and sales territory management will flow next year. In fact, we'd encourage you to start thinking about it now.
Even if you're sticking with pre-carved static territories - based on geography or industry or named account lists - you'll need extra time this year to figure out how to divvy up your territories for next year most efficiently.
If you're opting for a more flexible territory design, like dynamic books or round robin, then now's a great time to be sure you're getting the processes and technology in place to effectively run your territories next year.
Territory designing in sales management? Think about how you will address the following questions:
- Are you engaging the right accounts?
- Are you missing any high-potential accounts?
- Do you have any issues with sales rep satisfaction and retention?
- Is quota attainment and compensation equitable?
You won't have full answers to these questions now, but keep them in mind as you plan.
Here are a few of the early steps you should be thinking about now, as you prepare for next year's sales territory design.
1. Think carefully about your market
You've probably learned some new things about who your ideal customer is right now. Are there any updates you should make to your ICP? Do this first, before going any further with the territory design process. Assess your current ICP criteria, including the firmographics you think are important. If you need a deeper dive into ICP, read this.
Which segments should you focus on in your target market? Are there certain groups to prioritize? Maybe you want to de-emphasize certain account segments in 2024 because they've been particularly hard to sell to in 2023. Maybe you want to add new segments that have shown promise.
Lots more here about figuring out your TAM, SOM and SAM here.
2. Assess account quality and prioritization
Now's a great time to check in on your account scoring process, too. Does your current account score match the reality of what prospects turned into good customers this year? Do you need to update your scoring model with new criteria?
Beyond an account's fit score, how do you operationalize intent and timing data? Do you need to investigate new sources of intent data? Do you need to change how you integrate with an intent data provider? Are there other sources of timing data you could add (how do you know an account is in-market for your solution)?
3. Update lead distribution and account assignment rules
You'll likely want to make some changes to how you route leads and assign or allocate accounts. This may include new lead distribution software (and of course we recommend Gradient Works Routing for that!), new routing rules, or updates to how you decide who gets which accounts when. You may need to tweak your SLAs.
Be sure to update your rules of engagement too. Download our guide to rules of engagement, which includes templates you can use to codify your ROE.
4. Incorporate updated assumptions about sales cycles
Chances are good that you've seen longer sales cycles this year. How do prospects move through your buyer's funnel now? Do you need to make any changes to pipeline stages (including pipeline gates - what's required to move from one stage to the next)? Do you need to update models with data about longer sales cycles or lower win rates?
5. Consider moving to dynamic books
If you've experienced issues with pipeline coverage, unbalanced attainment, and sales rep productivity this year, then you should think about moving to a dynamic books model from a traditional territory design.
Dynamic books is an alternative to territories that relies on books instead of territories. Every rep is assigned a book of accounts, based on account fit and in-market timing, as well as the rep’s available capacity. When an account is converted or disqualified, it moves out of the rep’s book and a fresh new account moves in. A dynamic books approach doesn't predefine your universe of accounts into territories, but instead continuously distributes the best available accounts to a rep who can work it.
It's a better fit for unpredictable sales cycles and volatile market conditions, because it allows you to quickly pivot as you see what deals are closing and what deals are stuck. Dynamic books will help you create more pipeline, get more opportunities out of each rep, and generally be more efficient with the team you have now.
Gradient Works dynamic books software will automate the entire process for you. If you're interested in learning more, now's the perfect time to start that conversation. Let's talk!
6. Tread carefully with change
Your reps have already been through a lot this year, so try to make any changes go as smoothly as you can. Be clear about what you're changing, and when. Provide lots of enablement. Communicate clearly and often. If you're moving to a new sales territory design next year, read this article about change management.
We're only halfway through 2023, and now's the time to be thinking about what changes you want to make for next year. It's not too early to start thinking about next year's sales territory management. Hopefully these tips will help you get ahead of your planning.
