Sales Territory Alignment

Abstract

Sales territory alignment is strongly connected to sales force performance. For example, consider two sales territories from the Midwest region of a large company. The Chicago territory leads the region in sales and as a result, the salesperson earns high commissions. The salesperson works hard and seems to be always on the road visiting customers. Yet many prospective customers from the territory have never been contacted and some existing customers complain that they are not getting sufficient service. Sales to existing customers have remained almost flat and sales to new customers are low.