Territory Planning Guide: Maximize Coverage, Minimize Overlap
Data-driven territory design methodology covering account distribution, workload balancing, and performance-based territory optimization.
Territory Planning Done Right
Poor territory design is one of the biggest hidden revenue killers. When territories are unbalanced, top reps get overwhelmed while others are underutilized. This guide fixes that.
Step 1: Define Territory Dimensions
Choose your primary segmentation:
| Dimension | Best For | Example |
|---|---|---|
| Geographic | Field sales, local services | Northeast, Southeast, West |
| Industry | Specialized solutions | Healthcare, Finance, Tech |
| Company Size | Tiered pricing | Enterprise, Mid-Market, SMB |
| Named Accounts | ABM approach | Strategic account list |
| Hybrid | Complex orgs | Geography + Size |
Step 2: Score and Distribute Accounts
Score every account on potential value, then distribute evenly across territories.
Territory Balance Scorecard:
| Territory | Accounts | Total Potential | Existing Revenue | Score |
|---|---|---|---|---|
| Territory A | 120 | $2.4M | $800K | 85 |
| Territory B | 115 | $2.3M | $750K | 82 |
| Territory C | 125 | $2.5M | $820K | 87 |
Target: All territories within 10% of each other on total potential.
Step 3: Workload Analysis
Ensure no rep is over or under-capacity:
- Calculate total accounts per rep
- Estimate hours needed per account tier
- Factor in travel time for field reps
- Include admin and reporting time
Step 4: Performance-Based Adjustments
Review territories quarterly. Reallocate based on:
- Rep performance vs. territory potential
- New market opportunities
- Customer churn patterns
- Competitive landscape changes
From the LeadFinder Sales Team — find and organize leads by territory with our mapping tools.
Want More Resources Like This?
Join thousands of sales professionals getting free guides, templates, and strategies delivered to their inbox.