Territory Management: Principles of Designing Sales Territories

This week on the SBI Sales and Marketing podcast, we spoke with Tim Robertson, US Vice President of Sales and Marketing at DHL, about territory management and, more specifically, designing sales territories.

In our first segment, Tim starts us off by sharing what he believe is the most fundamental part of territory management in terms of territory design, which is analyzing the performance of sales territories at DHL. This beginning stage sets us up to plan both the sales strategy and market segmentation process of designing your plan. By looking at these two channels you understand their performance metrics and can ultimately drill down to the territory level.

Next, Tim discusses how he predicts the available spend of each market segment, how to acquire a specific type of customer to and how to reach a point where you can calculate how much it would cost to acquire that said customer. Tim then shares what his primary design principle is when designing sales territories.

In our last segment, we wrap our territory management discussion with Tim by talking about how to balance your newfound sales territories and Tim gives us a breakdown of his team’s monthly management system that they run, and also how they rebalance and spot-check the goals and quotas for each of the sales territories at DHL.