I’ve spent years coaching and training sales teams across Australia, and if there’s one area I see consistently overlooked, it’s sales territory planning and optimisation. In my early days, I’d often meet sales professionals who were doing great work in building relationships but struggling to manage their territories efficiently. It quickly became clear that to truly excel in sales, you need a solid foundation in territory planning. That means being strategic about where you invest your time, which customers or prospects you serve, and how you split or assign geographic or account-based boundaries among your team.
Over the years, I’ve witnessed countless organisations transform their results simply by improving this aspect of their operation.
Here’s what I’ve learnt along the way and what I believe every business in Australia should consider when it comes to territory planning.
Why Territory Planning Matters
At Salesmasters, we work with a range of B2B businesses in Brisbane and beyond, and it’s always striking how many sales teams don’t have a clearly defined territory strategy. Perhaps the company started small and grew organically, allocating new accounts to whichever rep had capacity. Over time, these ad-hoc assignments lead to uneven workloads, missed opportunities, or entire regions left under-served.
A well-structured territory plan can:
- Boost revenue: Research shows that fixing territory imbalances alone can lift overall sales by as much as 2–7%. Imagine what that means for your bottom line—just by reassigning accounts more intelligently.
- Improve morale: Reps are happier when they feel they’ve got an equitable patch, with a fair shot at meeting (or exceeding) their targets. No one wants to be stuck with a territory of low-value or hard-to-reach clients while their colleague has a goldmine.
- Enhance customer coverage: By matching reps’ strengths to specific industries or account sizes, clients get the attention and expertise they need. This leads to better relationships, higher retention, and more referrals.
- Save time and travel costs: A logical territory structure can slash the hours spent criss-crossing the country (or even just crossing Brisbane!). This means more time actually selling and less time on the road.
In short, territory planning helps you put the right resources in the right places, so you can serve customers effectively and grow revenue. It might sound simple, but it requires a combination of data analysis, strategic insight, and a willingness to change.
Aspects of Effective Sales Territory Planning
1. Define Your Ideal Customer and Market Segments
One of the biggest mistakes I see is businesses trying to blanket the entire market or region without prioritising. Instead, start by defining your Ideal Customer Profiles (ICPs) and key market segments:
- Which industries offer the most potential for your products or services?
- Where are your existing high-value accounts located, and what do they have in common?
- Which sectors or regions might be undervalued or untapped?
By drilling down into these questions, you’ll gain clarity on who you should target. This insight will help you build or adjust your territories based on where the greatest opportunities lie.
2. Balance Revenue Potential and Workload
I’ve come across too many sales teams where one rep ends up with all the big accounts while everyone else is left chasing smaller prospects. Not only is this demoralising, but it also means you might be leaving money on the table by failing to service those ‘medium’ prospects effectively. Balance is imperative:
- Revenue potential: Look at historical and forecasted sales data to identify high-yield accounts or regions.
- Workload: Consider the travel distance or time needed to nurture relationships. In Australia, especially outside our major cities, you can easily spend half a day just driving to the next meeting.
Don’t forget to factor in the mix of customers—some territories might be skewed towards existing accounts (farming) while others are more focused on new business (hunting). Try to ensure each territory has a healthy blend so no one is overburdened or short-changed.
3. Use Data-Driven Tools
In my experience, gut feel can lead to quick but flawed decisions when planning territories. We’re fortunate today that there are numerous Customer Relationship Management (CRM) and mapping tools available that can give us a clear, data-driven view of where opportunities lie. Whether it’s Salesforce, HubSpot, or another platform, many tools let you:
- Layer geographic and demographic data over a map of your existing accounts.
- Set rules (e.g. ‘territory boundary is 20 minutes’ drive from this location’) to minimise travel time.
- Run analytics to see if each territory meets a fair quota of potential revenue, number of accounts, or other key metrics.
The Australian CRM market, by the way, is projected to reach around AUD $2.5 billion by 2023 and could surpass $4 billion by 2030. This indicates how heavily businesses are now investing in technology to support areas like territory management. I’ve seen first-hand how adopting even basic mapping software—rather than manual spreadsheets—can transform planning and save an enormous amount of time.
4. Regularly Review and Realign
Far too often, territories get set and then left untouched for years—despite massive changes in personnel, product lines, or market conditions. For instance, a territory that made sense when you had six reps might be completely misaligned when you grow to twelve. Or perhaps you introduced a new service that appeals to a different sector, meaning your rep in Western Australia now has to travel more than ever before.
I recommend at least an annual review of territory alignments, if not quarterly. Look at metrics such as:
- Quota attainment: Is each territory hitting targets consistently?
- Revenue growth: Are there big variances between territories?
- Customer retention: Are certain territories losing clients at a faster rate?
If something appears off, investigate the cause. It could be that one rep needs additional training, but often, a quick realignment can address major imbalances.
How To Manage Territory Optimisation Issues
1. Territory Overlaps and Account Conflicts
I recall working with a business in Brisbane where reps were fighting over the same set of high-value leads. This created unnecessary tension and confusion for customers. To solve this, the company had to get crystal clear on the coverage policy—who ‘owns’ which account, and how do we transition a customer if they move into another region or segment? This vastly changed the customer experience.
Solution: Adopt clear assignment rules (e.g. based on postcode, annual revenue, or industry). Make sure these are documented and visible in your CRM. If an account truly straddles multiple regions, implement a collaboration or referral system so there’s a clear hand-off process.
2. Managing Rep Turnover
When a rep leaves, they can take a wealth of account knowledge with them, and their territory can be left in limbo. The key is to centralise information in your CRM so that new hires or covering reps can step in with minimal disruption. I suggest:
- Keeping thorough account histories, contact details, and notes updated and stored centrally.
- Using territory management software that allows quick reallocation of accounts.
- Communicating transparently with affected customers as soon as possible to maintain trust.
3. Gaining Team Buy-In
Implementing territory changes can be tricky—you might face resistance from those who are comfortable or protective of their existing patch. I’ve learnt that transparency and data-driven justification are vital. If you can clearly show reps why a territory plan is fair and how it benefits them in the long run, they’re far more likely to come on board.
Examples of Effective Territory Optimisation
One well-known global example that resonates with many Australian businesses is New Balance, the sports footwear and apparel company. They struggled with unbalanced territories that had grown increasingly illogical. By implementing an AI-driven mapping tool within their CRM, they reorganised territories around real data—taking account potential, growth forecasts, and local market dynamics into consideration. As a result, they saw a significant improvement in rep coverage, morale, and ultimately, sales.
Closer to home, I often see pharmaceutical and medical device companies here in Australia consistently refine their territories, aiming to align reps with healthcare hubs and patient populations, rather than broad state boundaries. This allows each rep to focus deeply on the hospitals and clinics in their area. It’s a practice that’s also been adopted by certain tech firms that divide their top 100 accounts nationwide for field reps, while smaller clients are managed by inside sales teams. Such segmentation ensures high-value customers receive the extra face-to-face attention they need, without neglecting others entirely.
Australian Market Trends and Stats
From my vantage point, there are a few major trends shaping how we plan territories in Australia:
- Wider Adoption of Sales Tech: As I mentioned earlier, the Australian CRM market could exceed AUD $4 billion by 2030. More businesses are recognising the importance of automating territory management tasks.
- AI-Driven Insights: Approximately 65% of sales teams worldwide say they struggle with efficient territory management. In Australia, companies are starting to explore advanced analytics and AI to address these inefficiencies. Some early adopters report significant lifts in revenue—sometimes up to 15%—after implementing AI-based territory solutions.
- Hybrid and Omnichannel Approaches: As buyer behaviour evolves, many organisations are redefining territories so that field reps focus on key or complex accounts, while remote or inside sales teams handle smaller clients or simpler transactions. This allows a more targeted, cost-effective deployment of resources.
- Focus on Fairness and Balanced Workloads: There’s an increasing emphasis on fairness, not just because it’s the ‘right thing to do’, but because it directly impacts revenue, retention, and even recruitment. We all know how tough it can be to attract and keep great salespeople—if your territory structure is perceived as ‘unfair’, you’ll struggle to keep your best performers.
My Top Tips for Effective Territory Optimisation
- Leverage Data and Tools: Don’t rely on guesswork. Use your CRM data, market research, and mapping software to understand exactly where your opportunities lie.
- Focus on Fairness: Make sure territories are balanced and transparent. If you discover major imbalances—like one rep holding far more high-value accounts—take steps to redistribute.
- Track Territory Metrics: Keep an eye on KPIs like quota attainment, revenue growth, and the number of customer touchpoints. These indicators reveal whether your plan is working or needs adjusting.
- Be Adaptable: Review your territory plan at least annually and don’t hesitate to realign if your business, staff, or market changes. This is one of the best defences against stagnation and lost opportunities.
- Communicate Openly: Territory changes can be delicate. Explain the rationale behind any reassignments, and involve your reps in planning. When they understand the data and potential benefits, they’re far more likely to support the shift.
Transformations Your Sales Organisation
I’ve seen some incredible transformations in sales organisations that took the time to get territory planning right. It’s not just about drawing lines on a map or dropping pins. It’s about understanding your market at a granular level, recognising where each rep can add the most value, and then constantly reviewing to ensure you remain one step ahead of changing dynamics.
At Salesmasters, we’ve helped countless Australian businesses rethink their territories, often discovering overlooked prospects or regions ripe for growth. I’m a firm believer that every sales leader should view territory planning as a strategic priority, rather than a routine admin task. Get it right, and you’ll see better coverage, happier reps, and a healthier bottom line.
If you’d like to explore sales territory optimisation further—or if you’re unsure whether your existing setup is truly working—feel free to reach out to us at Salesmasters. I’d be delighted to chat about how we can help you fine-tune your territories and unlock your team’s full potential.
