Sales territory mapping is one of the most important things you can do to ensure your company’s success.
That’s because it’s vital to clearly understand where your salespeople are focusing their efforts and what they’re selling. It allows you to determine whether your sales strategy works and how you might change it to improve results.
However, some common misconceptions about this process can lead companies astray — and cause them to make poor decisions about how they map out their territories. We’ll discuss these misconceptions so you know how to avoid them in your company.
1. It’s a One-Size-Fits-All Mapping Solution
In sales territory mapping, many believe the common misconception that one mapping solution fits all companies. However, this can be further from the truth. A “one-size-fits-all” approach can lead to inaccurate results, negatively impacting your sales team’s performance.
Instead of a generic solution, it’s best to use a customized approach that considers the complexity of your business and its particular needs.
The reason for this misconception is that many solutions on the market claim to map out territories for any company with little or no customization required. Therefore, most of these only provide generalized solutions without consideration of all your unique factors, such as:
- The number of customers you have in each territory.
- The quality/price point of your product or service.
- The number and type of competitors you have in each territory.
- How many employees each territory has.
2. Sales Territory Mapping Is a One-Time Task
Another common misconception is that sales territory mapping is a one-time process, and once complete, they can continue to use the same map for years. Yet, this is not the case. Companies must view sales territory mapping as an ongoing process, continuously updating and adjusting data.
That’s because it identifies areas with gaps in coverage or opportunities for expansion within existing markets. It also helps identify new needs where you can expand into territories without creating new ones from scratch.
In addition to identifying gaps, regularly updating your sales territory maps helps you make better decisions about how many people you need in each one. You can base this information on its size and whether it has enough customers for one or two people.
3. Mapping Is Only for Larger Sales Teams
This misconception is one you may hear often. If your sales team is small and you don’t have much territory — it’s not worth the time or effort to determine where to sell and how to maximize their effectiveness.
Here’s the thing. Even if your sales team is small, there are still ways to use sales territory mapping to improve performance.
For example, suppose you have a team of three people who cover a large geographic area. Each has their own set of clients and needs. With a mapping system, it’s easier for these reps to know which client should take priority over another. Plus, it also makes it difficult to ensure that everyone is spending time with clients who would benefit from their unique skill sets.
Yet, when you map out territories based on each person’s strengths — you ensure all clients get what they need from every rep — which means better customer satisfaction.
4. It’s a Purely Data-Driven Process
Sales territory mapping is a complex process that combines data analytics with human insights and intuition. While it’s true that sales territories can be mapped using purely data-driven methods, the result will be less accurate than one that incorporates human input.
The most common misconception about sales territory mapping is that it’s a purely data-driven process. However, there’s much more to it than crunching numbers.
To understand why this is the case, consider what goes into creating a map. You have to know where your customers are located, what their needs are, and how many are in each location. You must also know how many products or services you offer and which are best suited for each market segment.
It might seem like these things could all be determined through data analysis alone — but humans bring much more than numbers to the table. For instance, many companies expect to apply a formula to their data and expect mapping to work out perfectly.
However, it’s best to incorporate human insights and intuition instead by using your knowledge of how people interact with each other and their environment. That way, you ensure your map makes sense from a business and customer perspective.
Know Which Sales Territory Misconceptions to Avoid
Sales territory mapping is an important part of the sales process, but it can take time to get right when you believe in these misconceptions. Knowing these misconceptions is an important first step to avoiding them. Ultimately, this information can help you understand how to avoid common pitfalls and make decisions to help your team succeed.
