Territory break-even analysis
September 16, 2010
Are your sales territories partitioned properly? Does your current territory map beget maximum revenues?
Hopefully, management and sales agree on the answers but that is often not the case.
There is a break-even point (BEP) where adding an FTE (another sales person) is advised to optimize overall sales performance. In this economy, companies carefully measure costs and expenses versus revenue. However, companies often rely on ancient territory definitions which are not optimized. An audit provides actionable insights; which can be derived by analyzing sales history (perhaps 4 trailing quarters) at a granular level (e.g. by products, services, new vs. recurring, direct vs. indirect, etc.)
I’m not trying to solve the unemployment problem, but if your company boasts a notion of “growth strategy” restructuring sales territories can accelerate revenues overall and result in new hires.
