What are some tips to negotiate a more favorable territory for your sales team?
As a sales coach, you know how important it is to have a favorable territory for your sales team. A good territory can boost their motivation, productivity, and performance, while a bad one can demoralize them, limit their opportunities, and reduce their results. But how can you negotiate a more favorable territory for your sales team with your manager or your company? Here are some tips to help you.
Before you ask for a territory change, you need to understand how your company assigns and evaluates territories. What are the factors that influence the territory allocation, such as market size, potential, competition, customer base, and geography? How does your company measure the success of each territory, such as revenue, growth, retention, and satisfaction? By knowing the criteria, you can identify the strengths and weaknesses of your current territory, and the opportunities and challenges of the desired territory.
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Gather Data and Performance Metrics: Collect and analyze data on sales performance within the existing territory. Highlight successes, growth potential, and areas that require improvement. Use factual data to support your negotiation. Research and Justify: Conduct thorough research on the potential of the new territory. Identify prospects, market demand, competition, and growth opportunities. Present compelling reasons backed by research for why the new territory is strategic.
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Start by doing your homework – know the market, the competition, and what makes your product shine. Highlight the potential in the territory, emphasizing how it aligns with your team's strengths. Be confident but flexible; it's a dance, not a brawl. Forge relationships and showcase your team's track record. And hey, don't forget to sweeten the deal – maybe a little extra support or resources. Bottom line: Know your stuff, be smooth, and make them an offer they can't refuse.
Once you have a clear understanding of the criteria, you need to prepare your case for why you want a more favorable territory for your sales team. You need to show how your current territory is hindering your sales team's performance, and how a new territory would enhance it. You also need to demonstrate how your sales team has the skills, experience, and potential to succeed in the new territory, and how they can add value to the company. Use data, facts, and examples to support your case, and anticipate any objections or questions that your manager or company might have.
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Highlight Potential Revenue and Growth: Emphasize the potential revenue and growth opportunities the new territory offers. Showcase how expanding into this territory aligns with the company's overall growth strategy and objectives. Prepare a Territory Expansion Plan: Develop a detailed plan outlining how you intend to penetrate the new territory. Include market entry strategies, target accounts, marketing approaches, and resource allocation to demonstrate readiness.
Timing is crucial when you want to negotiate a more favorable territory for your sales team. You need to choose a time when your manager or company is open to discussing territory changes, such as during a review cycle, a strategic planning session, or a budget allocation. You also need to choose a time when your sales team has a strong track record, such as after achieving or exceeding their targets, closing a big deal, or receiving positive feedback from customers. Avoid asking for a territory change when your manager or company is busy, stressed, or facing a crisis.
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Leverage Relationships and Network: Utilize existing relationships or networks in the new territory. Highlight connections or partnerships that can facilitate smoother market entry or expansion. Emphasize Competitive Advantage: Highlight the company's competitive advantage, unique selling points, and how these strengths will be leveraged effectively in the new territory. Clearly articulate why your team is best positioned for success.
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John Gravanis
L&D teams in 80% of the Fortune 100 trust ELB Learning / Follow if you 🧡 your learners
It sounds counterproductive, I know, but it is wise to ask for a better territory when you don't need it! Timing is essential, but the request should be aligned with a moment of leverage, not necessarily the time of planning structure. A new, more favorable territory can materialize at the point of strategic planning, OKR review for the year, or budget allocation. Still, it has to be on the table when your team's results are stellar when riding a wave of overachievements = when you don't need it.
While you may have a preferred territory in mind for your sales team, you need to be flexible and realistic when you negotiate with your manager or company. You may not get exactly what you want, but you can still aim for a win-win outcome that benefits both parties. Be prepared to compromise on some aspects of the territory, such as the size, scope, or location, and to offer something in return, such as a higher quota, a longer commitment, or a referral. Don't be too greedy or too desperate, and don't make unrealistic or unreasonable demands.
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Collaborate and Negotiate Internally: Work collaboratively with other departments, such as marketing or operations, to build a compelling case for the new territory. Involve key stakeholders to support your negotiation efforts. Negotiate Incremental Expansion: Consider negotiating incremental expansion rather than an immediate large-scale change. Propose a pilot project or phased approach to demonstrate success and gradually expand the territory.
After you have negotiated a more favorable territory for your sales team, you need to follow up and follow through. You need to confirm the details of the agreement in writing, and thank your manager or company for their cooperation and support. You also need to communicate the change to your sales team, and explain the reasons, benefits, and expectations. You need to help your sales team adapt to the new territory, and provide them with the resources, guidance, and feedback they need. You need to monitor and report on their progress, and celebrate their achievements.
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Be Flexible and Open to Compromise: Be prepared to negotiate and compromise if necessary. Consider trade-offs or concessions that could benefit both parties while still achieving your primary goals. Communicate Value Proposition Effectively: Clearly communicate the benefits and value proposition of expanding into the new territory. Showcase how this expansion aligns with the company's vision and will contribute to overall growth.
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Be Persistent and Professional: Be persistent in advocating for the new territory but maintain a professional and respectful demeanor throughout the negotiation process. Persistence combined with professionalism can yield positive results. Follow-Up and Accountability: After negotiations, follow up and establish clear accountability for executing the agreed-upon expansion plan. Demonstrate commitment and ensure accountability for the success of the newly negotiated territory.
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