How to Create a Territory Plan

Posted by David Wallace on August 16, 2021

A territory plan is a sales rep’s individual strategic plan. It’s also a roadmap. It tells the sales rep where to go (goals) and how to get there (action plan). A territory plan is an essential operating tool for a sales rep and an essential management tool for a sales leader. Without it, your reps will not have a clear focus. And you won’t know what they’re working on. That’s a recipe for failure.

Step 1: Get Them Up to Speed

First, ensure that your reps thoroughly understand the sales strategy – and buy into it. Schedule a half-day or full-day workshop to go through the strategy in depth.

Focus on the following:

  • Marketplace positioning
    • What is your market niche?
    • What are your competitive advantages?
  • Ideal Customer Profile
    • Who are your best customers?
    • What industries are they in? How big are their companies?
    • Why do they need what you’re selling?
  • Your Offering
    • What do your products/services do?
    • What problems do they solve and for whom?
    • How do you justify your pricing?
  • Sales Enablement
    • What are your sales tools and how do the reps use them effectively?
    • What are your marketing programs and how are they supporting the sales effort?

At the end of the session, your reps should have a clear picture of what they are selling and to whom, and why.

Step 2: Build The Territory Plan

Now comes the real work. Give your reps very detailed instructions on how to prepare their territory plans. This includes templates and worksheets.

Give them a tight deadline (no more than two weeks) to complete the draft plans. Then, review the plans and help them refine their plans.

Each rep should have a final plan approved by the sales manager within two weeks of submitting the preliminary plan.

The territory plan is a very detailed document. But, at a high level, it includes:

  1. Revenue plan – Let’s say the sales manager assigns a $5 million quota. Now the rep needs to figure out how to make the number.
    • What will the rep sell and to whom?
    • Who are the best customers?
    • The plan should clearly identify the potential quarterly revenue from each of the key customers and prospects.
    • The plan should also identify the product mix they expect to sell, when they target selling the products and to whom, at least markets if not specific customers or prospects.
  2. Tactics and programs – The territory plan needs to be more than a revenue projection. It needs to show how the rep will achieve their goals.
    • What they will offer each account?
    • How they will present the offer?
    • To whom at the account they will make the offer?
    • Most importantly, what steps and actions will the rep take, and when, to move sales forward?

Step 3: Execute the Plan
Producing a detailed and realistic territory plan is an important step. Now your rep needs to execute.
The manager should closely monitor their reps’ performances against the plan with bi-weekly or monthly review meetings. If the reps are not making their numbers, both reps and their manager should know why. And they should agree on what corrective actions to take.

In general, sales reps can operate very independently. But they still need a roadmap. And they also need the guidance and support – and the occasional nudge – from the boss.

Wallace Management Group Can Help

At Wallace Management Group, we’ll help you build territory and account plans based on your company’s strategic plan. We can also help you put the processes and metrics in place to execute your plans and measure progress toward success.

We’d like to help you achieve your sales and marketing goals. Contact us at (203) 856-9400 or to discuss how we can help you drive more business.