Territory coverage - Too much or too little?

One of the most important questions for managing a sales organisation is: What should territory coverage be?

This could be one account per salesperson or it could be unlimited.

Too many accounts and the salesperson will not cover them but if there are too few the salesperson might not be product. There is only so many times you can turn over a stone to see what is underneath it.

The best salespeople can sometimes seem to be able to hit their target from a single account if they needed to. There is some truth in this but not everybody is as good as the best salesperson. It is better to plan based on good salespeople. Even the best salespeople will do better if they have a level of choice on which opportunities to pursue. Some of their skill is finding those and concentrating on them.

Now down to basics. 

How can you see this information in salesforce.com? Not easily.

You can run a report that shows the number of accounts that each person owns but that won't tell you if they have opportunities.

You can run a report that shows accounts with opportunities but that won't show you accounts that don't.

You need to be able to see the percentage of accounts with open opportunities.

This requires some custom fields on the account. Rollup summary fields that show if there are open opportunities, the number and the value of them.

The screenshots show what those fields look like.


Then you need to add a report that lets you see that information. It is useful to have a formula field on this that shows the % of accounts with open opportunities.


Review this information to see what your best reps are doing. What percentage of their accounts have open opportunities? What is the average age of these open opportunities? What is the average age of closed won opportunities?

This will help you decide what your territory coverage model should be.

PipelineCheck's application comes with these as standard if you want them out of the box.