Key Data Points for Sales Territory Development

AB

To develop more structure around sales territories, Northern Trail Outfitters (NTO) should consider the following two data points:

B. Attributes needed to segment and categorize customers: This data point is important because segmenting and categorizing customers based on specific attributes allows for effective territory planning and allocation of sales representatives. By understanding customer attributes such as industry, size, location, buying behavior, and preferences, NTO can create logical groupings of customers that can be assigned to sales representatives based on their expertise and the specific needs of those customer segments. This approach helps in optimizing sales efforts and ensuring that the right sales representatives are assigned to the right customers, leading to improved customer satisfaction and higher sales productivity.

D. Average number of customers managed by a sales representative: This data point is crucial in determining the workload and capacity of sales representatives. By analyzing the average number of customers each sales representative can effectively manage, NTO can establish reasonable and balanced territories. If the average number of customers per representative is too high, it may lead to overwhelmed salespeople and insufficient attention given to each customer. On the other hand, if the average number is too low, it may result in underutilization of sales resources. Finding the optimal balance ensures that sales representatives can provide adequate support and build strong relationships with their assigned customers, leading to increased sales and customer loyalty.

A. Number of currencies needed to support each sales territory: While managing multiple currencies might be relevant for global organizations operating in multiple countries, it is not directly related to the development of sales territory structure. The currency used for sales transactions can be handled centrally or within the CRM system without significantly impacting territory planning.

C. Distance between customer headquarters and their sales representatives: Although geographic proximity can be a factor in territory planning, it is not as critical as the other data points mentioned above. With modern communication technologies, sales representatives can effectively serve customers regardless of their physical distance. Sales territories should focus more on customer attributes and workload distribution rather than the physical distance between customers and representatives.

In summary, NTO should consider B. Attributes needed to segment and categorize customers and D. Average number of customers managed by a sales representative to develop a structured sales territory that aligns customer needs with sales resources and ensures optimal sales performance.