Your Ultimate Guide for Sales Territory and Quota Planning
A pillar of modern Sales Performance Management:
What to expect in this guide
Discover the elements of Sales Territory and Quota
Planning which, along with Strategic Sales Planning
and Sales Incentives & Compensation, is one of
the three key pillars of modern Sales Performance
Management (SPM).
Finding balance and maximizing value is key to
improving sales territory and quota planning. This guide
provides an overview of how it fits into collaborative,
unified sales planning to enable modern SPM. Discover
the importance of balanced sales territory and quota
planning, the hurdles you will encounter along the way,
and how you can enable your sales team to do what
they do best – talking to customers and closing deals.
Use this guide to deepen your understanding of linking
sales territory and quota planning with SPM. Learn how
this process can be supported, increase accuracy, and
improve sales planning across your organization.
Sales Territory and Quota Planning
The Impact on Performance & Credibility
Sales territory and quota planning will ultimately be fundamental to defining your organization’s sales
strategy and empowering your sales team members to map their own path to success. As a pillar of
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modern SPM, not getting it right means untapped potential, frustrated sales professionals, and potentially
losing valuable resources because of poorly planned T&Q.
Aligning business data is key to achieving balanced territory planning and realistic sales quotas. Enabling
access to all relevant data with modern SPM allows you to make informed decisions about sales territories
and quotas and easily make adjustments as needed throughout the year to stay on course.
Effective, software-supported planning supports salespeople in planning and managing sales, sales
territories, quotas, and compensation models. With intelligent, automatable forecasts, you always know
where you currently are and can accurately measure performance and increase trust and credibility by
being able to provide intelligent course corrections along the way
Sales territory and quota planning is the set of processes that align with strategic sales plans assigning territory by geographic region, industry, or account type to specific sales members and setting financial goals for specific time periods.
Finding balance and maximizing value
Sales territory and quota management that is poorly balanced dramatically increases the risk you’ll lose valuable resources, talented sales professionals being among
them. Utilizing the capabilities of modern sales territory and quota planning provides balance, maximizes value, and reduces frustration across the sales organization.
This is another multidimensional aspect of modern sales performance management, in addition to strategic sales planning and sales incentives and compensation.
Provide Balance
Maximize Value
Avoid Frustration
Finding the right balance is vital to successful sales
territory and quota planning that align with market
and business goals. Having all relevant data easily
accessible for T&Q ensures you avoid the pitfall of
putting too heavy of a weight into a single territory or
setting quotas too high or too low. Carefully review
your historical sales data to design territory planning
and account segmentation.
With balanced sales teams and territories, it is
much easier to maximize value as well as potential
for your sales teams and quota carriers to succeed.
Quotas can sometimes be a sensitive subject for
sales, so it is important they are clear and easily
understandable by all stakeholders.
Most companies are only as successful as their best
salespeople. A frustrated sales professional who
has been assigned a high quota may feel like it is
unattainable. Successful sales territory and quota
plans provide a high level of reliability and transparency. This is often reflected in the technology
organizations use for their data preparation and
processing. No one likes having to dig through old
spreadsheets that are several years old to figure out
where the T&Q needs to be adjusted.
Effective planning means operationalizing complexity. However, reducing complexity must not be at the expense of quality. Based on automated and integrated processes, all three dimensions can be taken into account in a strategic sales planning process and transformed into opportunities for the company
Roadmap for Sales Territory and Quota Planning
The basic framework of improving sales territory and quota planning is a multi-stage concept that flows smoothly into operational planning and thus perfectly
links the two areas. Each step addresses its own points that need to be dealt with. How such a concept looks in detail depends on individual parameters such
as company size, market cycles and strategic orientation. Nevertheless, we would like to provide you with a general guideline here.
Define: Planning
From management and customer expectations to
strategy changes and market volatility, business
success depends on internal and external factors. These interrelationships influence a business
and define organizational complexity. Globalized
markets, technological disruption and changing
customer demands are making the business environment more complex than ever before.
Set: Capacity and Segmentation
Smooth collaboration between employees is an
integral part of the sales planning process. They
must share the defined approach. In the individual
process steps, they collect data, evaluate it and thus
create the basis for decision-making by the executive board. The collaboration environment should
therefore be equipped with the right methods and
solutions.
Maintain: Forecasting
Planning is only as good as the data on which it is
based. A high level of reliability and transparency is
the result of a successful planning process. This is
often reflected in the tools used for data preparation and processing. The higher the need for coordination in a company, the more a supporting solution
is required to handle processes in a standardized
and integrated manner
Enabling modern SPM
Accelerate performance with faster, more accurate territory and quota planning
With increasing complexity across all sales planning
processes, the demand for simplified solutions has
become louder. Fragmented processes and manual
tasks make a visible, credible, and accurate T&Q process even more cumbersome and challenging.
Spreadsheets or isolated solutions quickly reach
their limits – lack of automation and limited data availability disrupt the planning flow. Faster, more accurate, and more reliable territory and quota planning
is key to successful long term SPM. By creating transparency based on an integrated solution, you have
taken the first step towards breaking down multidimensional complexity.
Unified planning increases efficiency and effectiveness across all areas of the company by supporting
employees in planning with a software-based solution. It accelerates and simplifies processes while
clearly revealing hidden potentia
Give your sales force the best chance to achieve
their revenue targets and close rates and no longer
rely on pure speculation for territory and quota
planning. Whether geography, industry, or product,
you can model ideal and actionable structures
across multiple dimensions. Increase your sales
team’s motivation by setting sales quotas that are
perfectly aligned.
The benefits of a unified planning solution:
- Focus through driver-based sales planning
- Integration through a uniform platform for strategic, sales and
operational planning - Relief through digitalization, AI and machine learning
- Agility through continuous real-time
planning and modern forecasting
Jedox: Key features of an effective solution
Increase your productivity and achieve peak revenues – optimize your resources and sharpen your
forecast accuracy. Jedox enables perfectly thoughtout and coordinated territory and quota plans and
realistic market segmentation. It also supports bottom-up planning and capacity planning.
Transforming your sales territory and quota planning
with a unified, software-based solution increases
visibility on targets, quotas, product mix, forecasts,
and top performers to have a full 360 degree view
of performance.
Modern Sales Performance Management enables
you to easily adapt your planning processes to the
speed of change and takes your sales performance
management to the next level.
Sales Incentives & Compensation
Strategic Sales Planning
Sales Quota & Territory Planning
- Modeling compensation
plans - Individual performance
insights - Compensation accruals
- Sales crediting
- Dispute resolution
- Long term strategy
- AI/ ML
- Top down planning
- Sales Insights
- Sales Forecasts
- Bottom up planning
- Market segmentation
- T&Q plans
- Capacity planning
Jedox simplifies planning, analysis, and reporting with one unified and
cloud-based software suite. Jedox empowers decision makers and business
users across all departments and helps them work smarter, streamline business
collaboration, and make insight-based decisions with confidence.
Over 2,500 organizations in 140 countries use Jedox for real-time planning on
the web, in the cloud, and on any device. Jedox is a leading Enterprise Planning
and Corporate Performance Management solution provider with offices on four
continents and with over 250 certified business partners. Independent analysts
recognize Jedox for its leading enterprise planning solutions.
