How to plan your sales territory

How to plan your sales territory

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  How to successfully planyour sales territory Simple and practical approach to build an initial plan for your business - designed for new sellers By Camilo Rojas - @camilo_rojas
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  High Level Process • Prepare.Customer, Play, Routes, Competitors • Establish target. 
 Target = Quota * 1.15 • Establish pipeline targets. 
 Pipe target = Target / Win Rate • Assess current pipeline. • Identify Pipeline Gaps.
 Gap = Pipe target - Current Pipe • For each gap, establish a territory plan. 
 Gap = Plays * Customers * Routes • Consolidate plan on an execution plan
 Execution = Customer * Action * Responsible * Dates
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  First, prepare…
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  Understand your customers • Agreeon coverage model with customer set and brands • Know renewal dates for S&S Evaluate sell cycles • Understand financials and key business drivers Discover competitor footprint and relationship • References documented • Analyze previous year results. • Cluster by industry if possible • • Customer Industry Customer 1 Telco Customer 2 Banking Key driver Footprint S&S aniv Competitor Rev Growth BPM 01/05/14 Oracle … Risk contain ECM 20/03/14 HP … Customer 3 Retail Margin + MM 15/07/14 SAP … Customer 4 Telco Churn - NAA 01/02/14 Cloudera …
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  Understand your salesplays • Review your sales plays available. • Review the business needs addressed with the play • Understand industries that best applies to them. Find the average sell cycle. Plan your average sell ticket Plays Industries Avg $ Sell cycle • Be aware of dependencies, appliances, special services Play 1 Telco 250k 90 days • Leverage accelerators, references and pre-sales assets Play 2 Banking 100k 60 days • Document your sales plays and land them to your territory Play 3 Retail 300k 120 day
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  Understand your competitors • Foreach one of the plays selected do your homework understanding their products, sales strategies, silver bullets. • Subscribe to their newsletters • Assist to their marketing events • Keep up on the IMAZ competitive information for tactics
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  Understand your routes • Forselected plays map your BP’s • Evaluate their tech, sales, marketing, services ability • Review previous year performance • Consider SI’s, ISV’s, VAD’s, internal services, etc.
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  Enable routes forplays • Plan with your BPR the deals that you need your BP to be ready. • Work together on a plan to enable them from a sales, tech sales and services perspective • Make sure the BP has IBM “readiness” to sell the business
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  Second, build your plan…
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  First establish yourobjective • Understand the past. Clearly assess what was the business for the previous year. Segment by route, play, product, industry. Establish your win rate. • See how you did against your competition. Measure by quantity of sales won / lost, revenue won / lost. • • Clearly understand the growth requested by your plan. Segment the objective by route, play, quarter. Target to make 115% each quarter. Even if you miss, you will be close to plan. Target = Quota * 1.15! ! Example! Quota Target 1’000k 1’150k
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  Establish your pipelinetargets • • With target establish your pipeline targets. Ideally separate for each one of your sales plays. Review each quarter for target pipeline Target Pipe = Target / Win Rate! ! Example! Last Year win rate 1/5 deals won Win rate 5x 0.2 ! Pipeline target 1’150/0.2 5’750k
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  Assess current pipeline • Checkyour current pipeline • Make sure you have real, controlled pipeline • Segment current pipeline by play, sales cycle, pipe age, deal size, volume of deals • • Leverage pipeline standard reports they have most of the info, weekly. Contact your marketing leader for this info. This should be a biweekly practice, this shows the health of your business. Pipe Validated Qualified Age Volume Play 1 1150 600 65 3 opps Play 2 1600 1400 80 5 opps Play 3 1400 1000 120 6 opps Total 4150 2000 88 14 opps
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  Target Pipe Validated Pipe Gap Play1 1450 1150 300 Play 2 2500 1600 900 Play 3 1800 1400 400 Total 5750 4150 1600 Identify Pipeline Gap Subtract your target pipeline with your existing pipeline by play. Alternatively by customer
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  Establish a territoryplan • • • • Work on a matrix to understand the play coverage in your customer accounts. Identify pipeline potential for each account Mark where the competition is incumbent. Make a plan on how to attack them. Make sure your total prospecting plan covers your gap. Play 1 Play 2 Total Client 1 100k 700k 800k Client 2 500k SAP 500k 300k 300k 1000k 1600k Client 3 Oracle Total 600k
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  Play Activity Responsible Date Outcome Play 1 100k Briefing Rep 1 01/03/14 Vision CVE TSS1 15/03/14 Qualify PoC Tiger 1 30/03/14 Tech Qua Propose Rep 1 15/04/14 Verbal Negotiate Rep 1 20/04/14 Close Sign & Book Client 1 Rev Rep 1 28/04/14 Happiness Play 2 700k Exec meet Rep 1 02/03/14 Vision … … … … … … Consolidate an execution plan Share it with your team, get them aligned, ask for help early
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  Third, and themost important step. ! Execute your plan.