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Balancing Territories for Equity and Efficiency: A Field ...
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Identify Priorities Build Baseline Solutions “In order to create a baseline territory solution we first need to understand this company's priorities.” The medical sales company is looking to minimize sales rep travel to cut costs and increase productivity. They also want more evenly valued accounts across reps - allowing for a fairer commission plan across the board.
“Maintaining equity between salespeople maximizing profitability and minimizing costs are important and interconnected factors.” Using spatial analytics and data science to optimize territories based on company priorities can help sales managers to eliminate guesswork and create well-reasoned and data-driven territories. Using the example of a medical device sales company in Illinois we dove into the methodology around building optimal sales territories.
For our example we are working to optimize sales territories for a company that has 40 sales reps targeting 925 medical centers across the state of Illinois which the reps visit each month. In order to create a baseline territory solution we first need to understand this company's priorities. “They also want more evenly valued accounts across reps - allowing for a fairer commission plan across the board.” Visualize your data
Sales territory management is a balancing act. Maintaining equity between salespeople maximizing profitability and minimizing costs are important and interconnected factors. There is no one-size-fits-all solution and if the balance is off sales management is likely to leave someone within their organization unhappy or leave money on the table. “Using spatial analytics and data science to optimize territories based on company priorities can help sales managers to eliminate guesswork and create well-reasoned and data-driven territories.” Identify Priorities Build Baseline Solutions
Identify Priorities Build Baseline Solutions “In order to create a baseline territory solution we first need to understand this company's priorities.” The medical sales company is looking to minimize sales rep travel to cut costs and increase productivity. They also want more evenly valued accounts across reps - allowing for a fairer commission plan across the board.
Build More Balanced Territories “What we are facing is a Multi-Objective Optimization problem: we are trying to simultaneously optimize for multiple goals which in this case counter each other.” Not to fear. We can still dramatically improve towars the medical device sales company's goals with the help of spatial data science.
Sales territory management is a balancing act. Maintaining equity between salespeople maximizing profitability and minimizing costs are important and interconnected factors. There is no one-size-fits-all solution and if the balance is off sales management is likely to leave someone within their organization unhappy or leave money on the table. “Using spatial analytics and data science to optimize territories based on company priorities can help sales managers to eliminate guesswork and create well-reasoned and data-driven territories.” Identify Priorities Build Baseline Solutions
Reach New Heights With Data-driven Territory Management “As a sales manager it's easy to maintain the status quo with existing territories often based on arbitrary geographies.” By using data science methods such as a genetic algorithm to create optimized sales territories based on organizational parameters and goals sales managers can greatly reduce these inefficiencies. These methods create tangible results such as a 50% reduction in territory value inequity or significant reduction of travel costs that can make a sales organization more equitable more efficient and more profitable.
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