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© Copyright 2011 The Sales Management Association
September 7, 2011September 7, 2011
Presented by:Presented by:Presented by:Presented by:
Jim BrownJim BrownJim BrownJim Brown
PresidentPresidentPresidentPresident
TerrAlignTerrAlignTerrAlignTerrAlign
The Science of Sales Force
Deployment
Experienced & FocusedFounded in 1987, majority of employees with 10+ years tenure
Focus on resource deployment & territory optimization
Complete software and services solutions
Experience across all industries and in 30 countries
Technology, Market & Thought LeadershipFirst desktop optimizer
First web-based interface
First to integrate with leading CRM & SPM solutions
First to underwrite SMA
2
About The TerrAlign Group
Agenda
Why is deployment optimization critical and strategic?
A tested framework for deploying sales organizations:
Sales Intelligence Metrics
Segmentation
Reach and Frequency
Sales Force Sizing
Territory Alignment and Optimization
Call Planning
Summary and Questions
Aligning Sales and Business Strategy
Channel Design and Selection
Sales Process Design
Organizational Design
Goal Setting
Incentive Design
Territory Sizing and Deployment
Quota Management
Territory Management
Compensation Administration
Strategy
Planning
Operations
Analytics
Productivity Improvement
Performace Reporting
Opportunity Information Management
Market/Customer Information Management
Sales Process Optimization
Knowledge Management
Training and Development
Sales Program Management
Sales Operation's ResponsibilitiesOPTIM
IZE
DESIGN
IMPLEMENT
Planned Sales Force Size Change
Framework for Sales Force Deployment
Framework for Sales Force Deployment
Sales Intelligence Metrics
Know where you are,
before deciding where to go.
Who are my customers and prospects?
What are their characteristics?
How productive are my salespeople?
What are their characteristics?
What have they been doing, when and where?
What have been the results?
Profiles of Customers and Prospects
Name
Address
Phone
Type of account
Potential for your products
Your existing sales
Preferred vendors
Salespeople
Productivity
Selling hours per year
Sales calls per year
Average duration of a sales call
Characteristics
Home ZIP Code
Tenure
Performance rating
Product proficiencies
Call History
Salesperson
Account called-on
Date
Activities performed
Type
Product
Duration
Sales History
Account
Time period
Your sales
Product
Amount
Sources
Internal Systems
Accounting, order processing, and CRM systems
Internal Experts
Delphi sessions
Outside vendors
Nielsen, IMS, and Dun & Bradstreet
Surveys
Custom research
Framework for Sales Force Deployment
Segmentation and Targeting
Segmentation aids targeting
Which accounts receive sales calls
How many sales calls do they receive
How will sales effort affect customer behavior?
Products purchased
Quantity purchased
Factors
Type of account
Competitive position
Potential
Response Analysis
Segment
Relate
Effort expended (call history)
Results achieved (sales history)
17
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
Response Analysis
Framework for Sales Force Deployment
Optimization of Reach and Frequency
Maximize return on investment
Return in sales
From investment in sales calls
Response analysis estimates
Sales
Resulting from a given number of sales calls
Across a specific segment of accounts
19
20
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
21
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
22
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
23
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
24
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
Travel Time vs. Reach and Frequency
Sales effort is more than the number of calls
Effort = frequency x (duration + travel)
Within a segment, accounts with high travel time
Have a lower ROI
Must deliver more sales per call vs. average account
Might be less attractive than lower potential accounts
Might be better covered by inside sales
25
Average Travel Time per Account
Framework for Sales Force Deployment
Sales Force Sizing
Optimization of reach and frequency
Estimates maximum revenue
For a given amount of sales effort
…or…
For a given number of salespeople
Optimize sales force size by
Optimizing reach and frequency
For various sales force sizes
Finding the difference in revenue produced
Choosing an acceptable return on investment
Optimization of Reach and Frequency
29
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0 1 2 3 4 5 6
An
nu
al
Sa
les
# of Calls
Response by Potential
A
B
Optimization of Reach and Frequency
Segment AccountsAverage
CallsAverage Revenue
Effort(Reps)
Revenue (000)
A 4,815 4 85,000 79 409,275
B 5,185 1 17,500 21 90,738
Overall 100 500,013
Sales Force Sizing
Sales Force Size Revenue (000)
Incremental Revenue per
Salesperson
80 455,000
90 480,000 2,500,000
100 500,000 2,000,000
110 515,000 1,500,000
120 525,000 1,000,000
130 530,000 500,000
32
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
-10 +10 +20 +30
Change in Sales Force Size
Incremental Revenue per Salesperson
Sales Force Sizing
33
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
-10 +10 +20 +30
Change in Sales Force Size
Incremental Revenue per Salesperson
Sales Force Sizing
Framework for Sales Force Deployment
Territory Alignment
You’ve determined
How many salespeople we need
On which accounts they will call
How often they will call on those accounts
How much time each of those calls will require, including travel time specific to the account
Now, we can create territories
Territory Alignment
A territory is a job description
It requires one salesperson
To call on a set of accounts
With a recommended call frequency
To produce an expected amount of revenue
Effort = frequency x (duration + travel)
Territory Alignment
A good territory:
Is balanced with respect to other territoriesIt requires the full effort of one salesperson, just like the other
territories
Doesn’t require less than one salesperson’s effortSalesperson’s effort is used on less effective calls or wasted
ROI is reduced
Doesn’t require more than one salesperson’s effortSalesperson can’t adequately cover his or her accounts
ROI is reduced
Respects roads and natural barriersMaximizes productivity by reducing travel time
0
20
40
60
80
100
120
140
160
% o
f A
ve
rag
e
Work by Territory
Underemployment Missed Calls Productive Work Work Required
Equivalent to 10% unassigned salespeople
Equivalent to 10% vacant territories
Territory Alignment
Territory Optimization
Optimize
Balance selling effort
Minimize travel size
Minimize disruption
Assess fit to existing salesperson locations
Expansions
Closures
Relocations
Fine-tune in consultation with field managers
Territory Optimization
Realignment Evolution
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
Territories
Rela
tive V
alu
e Current
Optimized
Final
High
Low
Increases sales
and profits by 4%
to 12% by full
resource utilization
Reduces travel
costs on average
by 10%-15%
Territory Optimization
Framework for Sales Force Deployment
Assign calls to weeks or days
Meet call frequency requirements
Schedule calls at equal intervals
Cluster weekly and daily calls geographically
Balance effort by week and day
Two basic approaches
Zones
Calendars
43
Call Planning
Territory AA254
Territory AA254 (zoned)
Day 1 Day 2 Day 3
ID Name CallsWork (hrs) ID Name Calls Work ID Name Calls Work
11071 Customer 5 1 1.11 11040 Customer 3 1 1.12 10038 Customer 1 1 1.29
22339 Customer 13 1 1.11 17607 Customer 8 1 1.16 18014 Customer 9 1 1.25
25173 Customer 17 1 1.11 18202 Customer 10 1 1.12 30527 Customer 24 1 1.21
26101 Customer 19 1 1.11 26084 Customer 18 1 1.16 32269 Customer 25 1 1.13
26624 Customer 20 1 1.11 27565 Customer 21 1 1.12 34351 Customer 27 1 1.23
34877 Customer 30 1 1.11 28450 Customer 22 1 1.12 34403 Customer 28 1 1.13
38389 Customer 33 1 1.11 29791 Customer 23 1 1.15 38068 Customer 32 1 1.13
9576 Customer 36 1 1.11
8 8.91 7 7.95 7 8.36
Day 4 Day 5
ID Name Calls Work ID Name Calls Work
10895 Customer 2 1 1.15 14430 Customer 7 1 1.11
11042 Customer 4 1 1.15 18343 Customer 11 1 1.11
11441 Customer 6 1 1.23 20999 Customer 12 1 1.11
22733 Customer 14 1 1.12 23758 Customer 15 1 1.20
25166 Customer 16 1 1.12 34742 Customer 29 1 1.11
33825 Customer 26 1 1.15 36942 Customer 31 1 1.21
44468 Customer 35 1 1.12 41753 Customer 34 1 1.19
7 8.04 7 8.05
Sample 5-Day Call Schedule
Framework for Sales Force Deployment
Self-Audit Questions
What sales intelligence metrics do you need?
Is your sales force sized to maximize revenue?
Are your salespeople:
Reaching the most profitable accounts?
Delivering the optimal call frequency?
On an efficient and effective schedule?
Do your territories:
Maximize salesperson productivity?
Support your reach and frequency goals?
Q&A and Contact Information
Q&A
Contact
Jim Brown
703-485-4562
TerrAlign
703-485-4560
Thank You.
