Module 1 - Class 1: What is Geography Based Territory Management?
Overview – This class explains what Geography Based Territory management is and what it can be used for. It will also outline the benefits of using this approach to territory management and provides best practices for managing territories effectively.
Learning Objectives - After completing this class you will have a strong understanding of geography-based territory management, as well as what it can be used for and the benefits it provides.
What is Territory Management?
Territories can be used in sales, service, and franchise businesses to define areas of responsibility. Typically, these territories are based on geographic areas while also taking into account factors such as customer density or pipeline value. The ongoing process of designing, balancing, optimizing, and realigning these areas is known as Territory Management.
Benefits of Territory Management:
Clear and Non-Overlapping Territories
Geography Based Territory management focuses on creating clear, non‑overlapping boundaries between territories. Effective design and maintenance of these boundaries helps prevent overlap, ensuring that each territory is clearly defined and owned by a single rep.
Reducing overlap improves workforce productivity and efficiency by eliminating duplicated effort and confusion around account ownership. This, in turn, supports improved customer satisfaction and clearer accountability across your team.
Manageable and Fair Territories
Territory management often involves balancing your territories to ensure they are set up fairly and perform effectively. A balance is a numeric metric used to compare territories and ensure they are equitable whether in terms of workload, number of accounts, opportunity, or overall potential. Balancing helps you design territories that are manageable and fair for your team while preventing situations where some reps are overloaded while others have limited potential to succeed.
Efficient and Cost-Effective Resource Allocation
Territory management also helps ensure that resources are allocated efficiently across your territories. When areas are evenly and appropriately covered, under‑served and over‑served regions are minimised. This reduces wasted effort, helps control operational costs, and increases the potential for sales growth by directing resources where they can have the greatest impact.
Faster Onboarding of New Team Members
Territory management also supports smoother onboarding by giving new employees a clear view of their assigned areas. With well‑organised territories, new reps can quickly understand which clients, leads, and locations they are responsible for. This reduces ramp‑up time, helps them become productive sooner, and ensures a more confident start in their role.
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