Estimate the potential for improvement in gross sales volume improvement and
gross margin contribution. Complete this for each product or service group and
then for total potential sales and gross margin improvement.
A detailed analysis such as this requires that the territory salesperson and the
sales manager keep good records. This type of analysis, completed on a regular
basis, is vital to good territory management. It is essential to the development
of personal performance outcomes (PPO). (Discussed later)
- Territory organization
It is very common for a change of salesperson in the territory to result in an
increase in sales. It isn't that the previous salesperson was not a good employee.
Consequently, moving salespersons to different sales territories periodically is a
common practice in many industries.
The reason for the sales increase is:
The new salesperson sees the territory through fresh eyes
They don’t have the same biases that the previous salesperson may have
developed over time
A different personality will naturally appeal to a different group of peopleFor example:
A sales manager is spending a few days making calls with the field
salesperson. The salesperson has been working that territory for 10
years. They arrive in our town and the sales manager reviews the
existing accounts and prospects with the salesperson.
In addition, as they drive through town, the sales manager sees a number
of business names he has never heard of before and they look like
they would be good sales prospects.
When he asks the salesperson about some of the businesses, the response
is typically, ′′Oh, I called on them a number of times a couple of
years ago. They weren't interested in our products. They said they
were committed to the products supplied by their buying group.′′