Territory and quota planning are central to every sales operation of scale, yet few companies appear to do it well. Gartner estimated that enterprises miss the equivalent of 5 to 10 percent of annual sales as lost opportunities, which could have been captured with the improvement of overall Sales Performance Management. With hundreds or thousands of sales people to plan for, determining optimal sales territory mapping can be an administrative nightmare that is prone to errors and inefficiencies – especially if you are doing this herculean task in spreadsheets.
Quota setting is equally challenging, as finding the balance between territory production, fair targets, and incentives that motivate can be a frustrating cycle with no natural end point. Clearly, improvements can be made to streamline these processes and motivate the sales force to overachieve with the right-sized quotas and territories.
Recently, Intangent and Anaplan jointly presented a webinar covering common territory and quota planning (T&Q) challenges. The webinar helps build the business case for a unified territory and quota (T&Q) solution, which can both drive revenues and reduce costs.
Drive new revenue with sales rep productivity
An easy way to drive incremental revenue with a T&Q solution is through sales rep productivity. Reps are more productive when they have clear sales targets and well-defined territories. In contrast, companies without a fine-tuned T&Q solution can see a rep productivity loss of 2 percent to 7 percent.
Drive new revenue with efficient territory allocation
Coverage gaps, territories with no assigned sales person, are missed revenue opportunities. Meaningful reporting and analytics can identify and correct inefficient allocation of sales resources to close those gaps.
Reduce expenses with the right tools and processes
Suboptimal territory design and ineffective quotas have an impact on the bottom line. It is common knowledge that when a sales rep has a bad territory he/she leaves the organization. And in most companies, it takes seven months for a new rep to become fully productive. This sales rep turnover, combined with the cost of hiring and training efforts, can have a material affect on sales expense. An agile T&Q solution can support the design of fair and equitable sales territories with achievable targets.
A robust T&Q solution can both drive revenue and reduce costs – justifying the ROI for such an investment. Why run another T&Q process in spreadsheets, when the cost and lost opportunity is great? Watch the recorded webinar to learn more.