Territory planning is the strategic process of dividing your market into manageable segments to ensure your sales team can operate with maximum efficiency. Without a clear plan, your reps often end up tripping over each other, neglecting high-value leads, or wasting travel time across different parts of Australia.
At Local Marketing Group, we see territory planning as the foundation of Revenue Operations. When done correctly, it ensures that every salesperson has an equal opportunity to succeed, customer service remains consistent, and your business captures every possible dollar in the market.
Prerequisites
Before you start, ensure you have the following ready:- CRM Data: A clean list of current customers and prospects.
- Historical Sales Data: Performance metrics from the last 12–24 months.
- Market Research: An understanding of your Total Addressable Market (TAM).
- Sales Team Capacity: Knowledge of how many accounts a single rep can realistically manage.
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Step 1: Analyse Your Current Customer Base
Start by looking at where your money is currently coming from. Export your customer data from your CRM and map it out. Look for patterns in geography, industry (ANZSIC codes are helpful here), and company size. What you should see: A spreadsheet or map visualisation showing clusters of high-value clients. You might notice a heavy concentration in Brisbane’s CBD or perhaps an untapped opportunity in the Gold Coast industrial corridors.Step 2: Define Your Ideal Customer Profile (ICP)
Not all leads are created equal. Define exactly who your best customers are. Are they SMEs with an ABN and 10–50 employees? Or are they ASX-listed corporations? Territory planning is more efficient when you focus on "Quality over Quantity."Step 3: Conduct a Market Opportunity Assessment
Use tools like the Australian Bureau of Statistics (ABS) or industry-specific databases to see how many businesses that fit your ICP actually exist in specific regions. This helps you understand the "potential" of a territory, not just its current performance.Step 4: Choose Your Territory Model
Decide how you will divide the market. Common models include:- Geography: Postcodes, states, or regions (e.g., South East Queensland vs. Northern NSW).
- Industry/Vertical: Assigning reps to specific sectors like Healthcare, Construction, or Tech.
- Account Size: Distinguishing between Mid-Market and Enterprise accounts.
- Hybrid: A mix of geography and industry.
Step 5: Calculate Account Workload
This is where many Australian businesses fail. You must determine how much effort it takes to manage an account. If a rep needs to visit a site in person in Toowoomba, they can't manage as many accounts as a rep doing inside sales via Zoom from a Sydney office. Factor in travel time, meeting frequency, and administrative tasks.Step 6: Set Clear Objectives and KPIs
What does success look like for each territory? Set specific targets for:- New business revenue.
- Retention rates.
- Market penetration percentage.
- Average deal cycle time.
Step 7: Draft Preliminary Boundaries
Using your chosen model, start drawing the lines. If using geography, group postcodes together to create balanced workloads. Ensure that each territory has a mix of "low-hanging fruit" (existing accounts) and "greenfield" (new prospects) to keep reps motivated.Step 8: Review for Equity and Fairness
Review the territories with your sales leadership. Does one rep have a "Gold Mine" while another has a "Desert"? If the potential commission earnings are vastly different, you’ll struggle with staff retention. Aim for an equitable distribution of opportunity.Step 9: Assign Sales Reps to Territories
Match your reps' strengths to the territory needs. A senior rep with deep industry knowledge might be best suited for a complex Enterprise territory, while a hungry junior rep might excel in a high-volume geographic territory with many small leads.Step 10: Implement a Conflict Resolution Process
In Australia’s interconnected business landscape, overlap is inevitable. Define "Rules of Engagement." For example: "If a lead has a head office in Melbourne but the site is in Brisbane, who owns the lead?" Deciding this now prevents internal friction later.Step 11: Roll Out and Communicate
Present the new plan to the team. Explain the why behind the changes. Show them the data that proves why these new boundaries will help them hit their targets more easily.Step 12: Monitor and Optimise
Territory planning is not a "set and forget" task. Review the performance every quarter. If a territory is underperforming, investigate whether it's a talent issue or a territory design issue. Be prepared to rebalance postcodes or industries as the market shifts.---
Pro Tips for Success
- Use Postcodes Wisely: In Australia, postcodes can cover vast areas (like 4825 in QLD). Don't just look at the map; look at the actual travel time between hubs.
- Include 'Buffer' Zones: Keep some accounts or regions unassigned to allow for future hiring or seasonal surges.
- Leverage Technology: Use mapping software (like Mapline or Geopointe) integrated with your CRM to visualise your territories in real-time.
Common Mistakes to Avoid
- The "Star Rep" Trap: Giving your best rep all the best leads. This prevents other reps from growing and creates a single point of failure if that rep leaves.
- Ignoring Travel Time: Australia is huge. Expecting a rep to cover "Country NSW" as a single territory without considering the 8-hour drives is a recipe for burnout.
- Static Planning: Failing to update territories when a major competitor enters the market or an industry downturn occurs.
Troubleshooting
- Issue: Reps are complaining about 'unfair' territories.
- Issue: High-value leads are falling through the cracks.
- Issue: Data in the CRM is messy.
Next Steps
Now that you have a designed territory plan, it's time to align your compensation structure to match these new goals.Need help with the technical side of CRM mapping or RevOps? Our team at Local Marketing Group can help you audit your current sales structure. Contact us today to book a strategy session.