Author: Rick Roberts
If Your Sales Team has Quotas to Hit, You need SAP’s Territory and Quota Management Tool
So far, 2020 has not gone the way many of us expected it to. When all is said and done, field sales reps will have been out of the field for at least a quarter of the year, pipelines have shrunk, and many of the 2020 strategic plans created in bullish 2019 have gone out the window. Peering into your crystal ball and determining how to realign your reps with new goals or coverage models can seem like a herculean labor, but it doesn’t take a hero. Data is the powerful tool you need to realign sales reps, and data can be easily managed with the right solution.
Territory and quota management is a critical practice for any sales organization with a complex coverage model, and in today’s economy, that’s characteristic of almost all enterprises. Whether reps are in the Mid-Atlantic, or the Pacific coast, they all need targets that have to be aligned with corporate goals. Creating the right coverage and right goals isn’t just a Q4-task, but rather should continually be analyzed and optimized - especially considering changes that can occur in the market, or within the organization. It doesn’t matter if it’s COVID-19, sales rep churn, the rapid decline of an industry - whatever the reason, your metrics are going to be affected: market penetration, historical performance, performance forecasts, and of course your pipeline. If you’re armed with just a map, a conference line, and Excel right now, good luck!
Let’s start with the basics. What is a territory?
A territory isn’t just a geographic area. Territories can be based on either individual or the combination of several types of information, including:
- Geographies. Zip codes, states, countries or regions - however you define it, geographic designations are one common element for determining and optimizing your coverage model.
- Accounts. Another common element for determining coverage is account type: new versus existing, revenue/profit potential, pipeline stage or verticals.
- Products and Services. Focusing on specific products (or services) is another common element for coverage planning, particularly with overlay or specialist positions.
Why do you need a solution for Territory and Quota (T&Q) Management?
Information, if kept and interpreted correctly, provides a north star for data driven organizations. Many sales , finance and operational teams are still using Excel or highly customized legacy systems for processes as important as commissions, modeling and territory and quota management. The Achilles heel of Excel is its domino effect - manual input/human error can lead to a big, costly miscalculation that takes hours to find. That’s also not considering that Excel isn’t built specifically for many of the tasks it’s being used for. In short, a T&Q solution is a much more powerful tool that will help you realize higher ROI in the not-so-long run.
What is a great tool for T&Q?
A solution that’s customized for the specific purpose of T&Q, is SAP’s Territory and Quota. At a high level, it provides the following benefits:
- Properly and fairly structured territories with appropriately associated quotas. This means that in times of change, you can make necessary, informed changes much more easily, and accurately.
- Easily rank territories based on account types or verticals.
- Fairly distributed and targeted accounts - getting the most out of each territory.
- More motivated, informed, and productive reps.
- Reps receive their territories at the beginning of the year versus months (or quarters) into the year. Reps are more likely to hit their quotas in a full year than in nine months!
- Helps create manageable territories for reps - reps sell more when they aren’t on planes, trains and in cars.
- Easily integrated into the broader sales systems ecosystem, including CRM, SPM, CPQ and other.
Whether it’s smooth sailing or times of rapid change, the same questions still remain that the sales organization has to answer to the board. How many leads are being generated? How many leads are closing on the east coast versus the west coast? What is the projected value of the southern territory versus the midwest, and why? Who are our top performers, and why? With data, and the right tool, a director of sales operations can walk into that meeting with their head held high, confident that they can answer whatever questions may come their way. SAP’s Territory and Quota tool is a powerful tool designed for this - and it’s used by a company that won’t be named, but is who you count on to deliver a package at your doorstep. This company understands that data is all-powerful, but it needs to be managed by the right solution to provide a north star.
So why continue to use an Excel or legacy system, when you could explore a tool that, especially now, could empower you to make the right changes and come out ahead? After all, you wouldn’t use a garden shovel to clear snow from your driveway, would you? Ditch Excel or your legacy system, and look into a legitimate solution like SAP Territory and Quota.