Sales territory planning tool and method

[0001] [Not Applicable]

[0002] [Not Applicable]

[0003] This application includes a computer program listing appendix submitted on compact disc, which is hereby incorporated by reference.

[0004] The present invention relates to a system and method for making and organizing a sales territory plan and, more particularly, to a system and method for analyzing a sales territory and identifying growth opportunity from which to set sales goals and strategies and ultimately define a tactical action plan.

[0005] Territory sales people traditionally use tactics such as cold calling by using an alphabetical listing of prospective clients to contact and also visiting prospective clients by planning geographic routes by zip code. Sales people are generally not business people and do not have a business mindset (i.e., good business analysis and planning skills). Oftentimes, they use high pressure sales tactics to win over clients, trying to win over anyone they can, not strategizing. This leads to disorganization and inefficiency in the sales people's territory activities and thus less sales revenue is reaped than what otherwise could be.

[0006] However, there are sales process solutions that help sales people identify the key steps, and activities within, so as to help the sales process stage progress from “Qualify Lead” to the “Closed” phase. Also, techniques have been taught to help sales people perform selling activities such as needs development, objection handling, probing, and closing, in the most effective way possible and in the most convincing manner. Sales methodologies exist to help sales people develop account-level management strategies for particularly complex sales. These sales training and sales process solutions (e.g., Miller Heiman, Sandler Sales, Dale Carnegie, Solution Selling, SPIN Selling, etc.) help sales people to maximize their effectiveness with each individual sales opportunity.

[0007] A key to sales productivity is strategy and organization, not high pressure sales tactics. There is a need to not only optimize the techniques of one sales person, but also the whole team of sales people for that company. Similarly, there is a need to maximize the effectiveness of the sales process on a holistic level to provide greater sales efficiency and productivity, focusing away from the inefficient, time consuming focus on each individual sales opportunity in connection with cold calling sales. In sum, there is a need for a structured sales planning process and for associated tools to assist sales people increase their sales efficiency and productivity.

[0008] The present invention, also referred to as the HarvestGold Process™, is an integrated solution that assists sales people, as a team or as individuals, increase their efficiency and productivity by presenting them with a defined framework with which to organize their sales data, set sales goals for the immediate and long-term future, develop a sales strategy with an analytical framework as a guide, define a tactical action plan for executing the strategy, and an execution of the territory sales-plan and follow-up.

[0009] In general the process comprises reviewing historical sales data and strategy to define a sales record, which is then segmented based upon commonalties and categorized; and analyzing the segmented record by individual sales territory to create a territory dashboard from which trends and relationships are then evaluated. These trends and relationships are further analyzed using a territory strategies worksheet (see FIG. 17 for an example of a paper or spreadsheet version as described here, see FIGS. 7a-d and 8a-e for an alternate example of a software embodiment employing this basic idea) for planning sales strategies based on account segments, sales goals, and other relevant criteria, to establish a tactical sales action plan. Optionally, the tactical sales action plan is put into force and follow-up on the ongoing results of the sales action plan is reviewed and necessary modifications are made to achieve the sales goals.

[0010] An advantage of the present invention is to provide a tangible, integrated solution for a structured sales planning process and tools to help aid sales people increase their sales efficiency and productivity. Another advantage is directed towards instilling business efficiency in the sales people of the company by providing them with a structured framework with which to think about, analyze, and otherwise examine their historical, present, and projected sales data. Projected sales data is determined by the use of historical and present sales data, including the amount of work required by the sales person, such as telephone calls and visits to clients, in order to secure a sale.

[0011] Having briefly described the present invention, these and other objects, features and advantages of the invention will become apparent by those skilled in the art from the following detailed description of the invention and the accompanying drawings.

[0032] The method presented herein assists sales people, as a team or as individuals, to increase their efficiency and productivity through analyzing a sales territory and identifying growth opportunity from which to set sales goals and strategies and ultimately define a tactical action plan, overviews which are illustrated as FIGS. 1 and 2.

[0033] The method starts with an analysis of a company's business for the prior year to build a territory business plan. The company may be of any size or constitute an individual sole proprietor. Historical facts about the company business are reviewed on a regular basis or for a certain time period so that users understand the characteristics of their sales territories in several different categories. Users of the process can be anyone interested in improving their sales strategies including, for example, company individuals, such as executives or sales persons, or groups or committees of company individuals. Independent representatives may need to develop a system to record and maintain historical sales data on their own.

[0034] In an example of a first step, the user or sales people start by reviewing the sales situation and sales strategy by examining from either summary sales data from CRM (customer relationship management) systems, SFA (sales force automation) systems, or the functional equivalent thereof, or from transactional data in back-end order processing or account systems.

[0035] Once the historical data is compiled (or otherwise imported, as from a CRM, SFA, back-end order processing, or account system, wherein the present invention is embodied in software, such as in FIG. 3a), a template is created to provide a quick snapshot that to captures that information by territory in a format that will assist the user to identify key trends and opportunities. This can be done using a “Territory Data Dashboard” (see FIG. 14 for an example of a paper or spreadsheet version as described here; see FIG. 4a as an alternate example of a software embodiment employing this basic idea) that summarizes information into several different categories. These categories include: customer segmentation; product/line analysis; channel analysis; and prospect analysis.

[0036] In this step the user defines sales success for the company, sales organization, and sales representatives, and determining quantitative key metrics, where the key metrics comprise of both key productivity metrics and sales activity metrics. The key metrics should be quantifiable and they should be ones that are relevant to company goals. Preferably they are easy to measure (i.e., quantifiable within sufficient certainty) and they are easily understandable. Key productivity metrics function to measure results and/or key deliverables. Examples of these are numbers of proposals delivered, number of closings, revenue generated, and new customer acquisitions. Sales activity metrics function to measure sales activity functions, such as number of phone calls, appointments, and product demonstrations. The total number of key productivity metrics and sales activity metrics used should not exceed five. Using too many can defeat an otherwise efficient and well thought out sales territory plan. A worksheet can be used to help define what metrics will be used as an aid in organizing the sales data (see FIG. 12 as an example of what would occur in a software embodiment as a variation of this basic idea; the paper or spreadsheet version is embodied as described here) or this can be implemented in software format.

[0037] In an example of this step, customer segmentation category requires the user to assess customer specific information (see FIG. 13 for an example of a paper or spreadsheet version as described here; see FIGS. 3b-3d and 4b as alternate examples of a software embodiment employing this basic idea). This is gathered by asking questions such as: Who are my best and worst customers? What do they buy and how much do they buy? What are my average order sizes by customer segment?

[0038] The product/line analysis (paper or spreadsheet version is as described here; see FIG. 4c as an alternate example of a software embodiment which employs this basic idea) requires the user to assess its various products and different lines or services. This information is gathered by asking questions such as: What products or lines sell the most? Which products or lines have the most customers and which ones generate the most orders? What are their average order sizes?

[0039] The channel analysis requires the user to consider the channels used for obtaining company business. This is gathered by asking questions such as: Where are my sales coming from? What percent of my business comes from field orders, telephone orders, orders placed at trade shows or markets, orders taken by channel partners?

[0040] The prospect analysis requires the user to project the company's potential or desired customers. The analysis is undertaken by asking questions such as: Who are my top prospects? How many prospective new customers do I have?

[0041] The information solicited from these analyses are reviewed and the sales account data generated from that step is then organized in such a way where the accounts are segmented by several discrete categories. These segmented categories help the sales people to visualize the data in different formats to help determine which groupings of which sales accounts are the most profitable, viewing the sales data in various perspectives as angled by the various segmented categories.

[0042] One mode of segmenting which is to be done consists of utilizing customer category entries such as A, B, C, D, and other, organizing the sales accounts in such a way where they are aggregated by the most profitable sales accounts to the least (hence a grade A, B, C, D sales account, from best to worst) (see FIG. 13 as an example of the paper or spreadsheet version as described here—this may be alternatively embodied in software using this basic idea). Using this method of aggregation, a monetary sales minimum and monetary sales maximum are also defined for these grades (A, B, C, D, and other) for review by the sales person and for showing one such view of profitability among sales accounts.

[0043] Other ways of segmenting that are to be done include segmenting by industry, account type, products and services of the company, and also sales channels (i.e., sources of sales) of the company (see FIG. 13 as an example of the paper or spreadsheet version as described here; this may also be alternatively embodied in a software version using this basic idea).

[0044] To help further analyze and organize the sales data, a territory dashboard (see FIG. 14 as an example of a paper or spreadsheet version as described here; see FIG. 4a as an alternate embodiment in software which uses this basic idea) is then created, which represents the segmented accounts as described above—segmented accounts by industry, account type, products and services of the company, and channels of the company (see FIG. 13 as an example of the paper or spreadsheet version as described here; this may also be alternatively embodied in a software version employing this basic idea). The territory dashboard (see FIG. 14 as an example of a paper or spreadsheet version as described here; see FIG. 4a as an alternate example of a software embodiment using this same basic idea) is where the sales people review this information as a tactical aid in thinking about how the number of orders for products/services that have high average order sizes can be increased, how the number of orders placed by account or channel segments that have high average order sizes can be increased, and how the average order size of accounts and average order size of sales channels can be increased, where large volumes of orders are placed for the foregoing. It provides a way of visualizing a summary of the key territory characteristics and data by customer segment, such as the A, B, C, and D accounts or as categorized by industry, by product line or category, including average order size and number of orders, sales channels (i.e., sources of sales), as in inside vs. field sales and channel vs. direct sales. See FIG. 13 as an example of the paper or spreadsheet version, which may also be embodied in a software version.

[0045] Based upon the categories of information income and productivity goals for are established for the company, and optionally for individuals within the company. Productivity goals include, for example, average order size, average orders per customer, etc. Territory dashboard facts (see FIG. 14 as an example of a paper or spreadsheet version as described here; see FIG. 4a as an alternate example of a software embodiment using this same basic idea) are to be used with income goals in order to help create a goal setting questionnaire (see FIG. 15 for an example of a paper or spreadsheet version as described here; see FIGS. 5b and 6a-6e as an alternate example of a software embodiment using this same basic idea) and establish those income and compensation goals.

[0046] In a next step, goals are set. Goals are set by having the user identify income objectives. And asking what are the facts about my territory, what are my productivity and activity goals for this next quarter? This year? How much growth can I count on from existing customers, and how much new business do I have to write to hit my goals? What are the key sales statistics or “metrics” that I can track proactively to ensure that I make the money I want to make this year?

[0047] In this step the user sets sales goals for the company or each individual member of the sales team. The sales person checks the resulting sales goals against company assigned quotas or sales targets, sets activity and productivity goals, and tracks key metrics. There are three tools that assist in this process: 1) a customer budget template, 2) a goal setting questionnaire (see FIG. 15 as an example of a paper or spreadsheet version as described here; see FIGS. 5b and 6a-6e as an alternate example of a software embodiment using this same basic idea), and 3) a goal summary sheet.

[0048] The customer budget worksheet enables the sales person to project sales for each customer over the upcoming year (or other selected, finite time period). The customer budget template includes the customer name, account type, sales account type for that customer, category, last year sales, projected sales for this year, and any notes the sales person wishes to add as related to the customer account. This can be implemented in paper, spreadsheet, or software format.

[0049] The goal setting questionnaire (see FIG. 15 as an example of a paper or spreadsheet version as described here; see FIGS. 5b and 6a-6e as an example of a software embodiment employing this same basic idea) is where the sales person enters information about specific strategies used to reach the sales person's sales and compensation goals. In determining the sales goals, the sales person must set realistic goals which are reachable, the sales revenue goal must meet minimum requirements for the territory, the income objectives must be aggressive, and the territory must support the level of activity required to produce the targeted results.

[0050] The goal setting questionnaire (see FIG. 15 as an example of a paper or spreadsheet version as described here; see FIGS. 5b and 6a-6e as an alternate example of a software embodiment using this same basic idea) includes fields for reviewing and inputting or writing information concerning one or several of the following topics: 1) total compensation goal for this year and last year's result plus how much commission is needed to earn this year to meet the total compensation goal, 2) average commission rate goal for this year, last year's result, and how much business needed to write in for this year, 3) monetary amount of business that is forecasted to come from existing clients next year and the required new business the sales person has to generate (the forecasting can be done on paper, using a spreadsheet, or software; an example of a software embodiment is in FIG. 5a), 4) percent of business the sales person is forecasting to come from existing clients, new clients, and the total which should equal 100% (see #4 for the forecasting reference), 5) the number of phone calls it takes to get an appointment with a new prospect, the success rate (in percentage form) from cold calling, 6) percent of appointments with existing clients that result in sales, 7) percent of orders from existing clients which require on site visits or how many times a year on average the sales person has to visit the existing clients, 8) number of new prospects the sales person has to meet to obtain a new client, 9) number of appointments with a new prospect that is required to close the first sale, 10) success rate (in percentage form) of appointments with prospects that result in sales, 11) average order sizes for existing customers for this year and last year and number of orders the existing customers place per year, both this year and the last year, 12) average order sale size for this year and last year, and 13) the number of orders the sales person will place with new clients per year for this year.

[0051] The goals summary sheet (see FIG. 16 as an example of a paper or spreadsheet version as described here; see FIG. 5c as an alternate example of a software embodiment which employs this same basic idea) helps the sales person visually determine the activities that must be completed, the rate or frequency with which these activities must be completed to reach the sales goals (as defined in the answers to the goal setting questionnaire (see FIG. 15, a paper or spreadsheet version as described here; see FIGS. 5b and 6a-6e as an alternate example of a software embodiment using this same basic idea)). The goals summary sheet (see FIG. 16 as an example of a paper or spreadsheet version as described here; see FIG. 5c as an alternate example of a software embodiment using this same basic idea) helps the sales person to tabulate data on an annual, quarterly, monthly, weekly (assuming 45 productive weeks per year), and daily basis. It lists the following data: 1) commission income goal, 2) a first activity goal as represented by the number of phone calls to prospective new customers, 3) a first activity goal as also represented by value per phone call (as determined by projected sales divided by number of phone calls to prospective new customers), 4) a second activity goal representing the number of existing customer appointments, 5) a second activity goal representing the number of new customer follow-up meetings, 6) a second activity goal as also represented by the number of new customer first meetings, 7) a total of the numerical values of the number of existing customer appointments, new customer follow-up meetings, and new customer first meetings (in view of the activity goals as described above in steps 4-6), 8) a first productivity goal representing the number of customers in which a sale occurs with respect to existing customers, new customers, and the total, 9) a second productivity goal representing the monetary amount of sales revenue with respect to existing customers, new customers, and the total, and 10) a third productivity goal representing the number of sales transactions/orders with respect to existing customers, new customers, and the total.

[0052] In addition to goals, strategies are evaluated. To identify strategies requires the user to consider issues, in addition to the normal course of business in a territory, such as what two or three specific growth strategies can I focus on to maximize my opportunities for success? What types or categories of customers represent my best opportunity for growth? What products or lines would they most likely purchase? What will I do new or different to change their buying behavior? What competitors must I prepare to sell against?

[0053] The sales strategy can be constructed with the aid of a territory strategies worksheet (see FIG. 17 for a paper or spreadsheet version as described here; see FIGS. 7a-d and 8a-e for an alternate example of a software embodiment using this same basic idea) for planning sales strategies based on segmented accounts, sales goals, and other relevant criteria (see FIG. 13 as an example of the paper or spreadsheet version as described here; this may also be embodied in a software version using this same basic idea). The territory strategies worksheet (see FIG. 17 for a paper or spreadsheet version as described here; see FIGS. 7a-d and 8a-e for an alternate example of a software embodiment using this same basic idea) helps the user to consider what segment of the territory market represents the best opportunity for growth, what products are the best fit for each segment, what will the sales person try new or different to generate a better sales result, and what the sales person's goals are relative to the strategies the sales person ultimately decides to employ. The territory strategies worksheet (see FIG. 17 for a paper or spreadsheet version as described here; see FIGS. 7a-d and 8a-e as an alternate example of a software embodiment using this same basic idea) helps one define and plan the sales strategies using the following criteria: 1) defined category of segments of accounts being targeted—the targeted account group, 2) a strategy summary such as but not limited to increasing of average order size, cross-selling of additional products to existing customers, selling new products to new or existing customers, 3) number of accounts targeted, 4) focus product(s) or line(s) or service(s), 4) a monetary value representing the sales goal, considering the sales person's anticipated success rate, number of transactions, and average order size to estimate the sales person's sales goal for each strategy, and 5) a sum total of the foregoing numerical values for all entries as related to defined categories of segments of accounts being targeted. It also delineates the strategy goals and results including the defined strategy (there may be more than one), sales goal, actual sales, percent of goal, comments, and any adjustments.

[0054] Results of these steps either viewing on worksheet or computerized provide a basis for arriving at tactics. The tactics are derived by considering various issues such as: What specific accounts should I target based upon my growth strategies? How will I plan and prepare for sales calls with my target customers? What sales techniques and methodologies will I use to maximize my effectiveness on those calls? Where are my targeted accounts? How often and when exactly do I plan on calling on them?

[0055] The sales tactics for putting the plan into action may be created using the following methods: 1) creating a focus list targeting specific accounts that meet the company's growth strategy, 2) developing account level strategies and plans for the targeted accounts, 3) planning standard travel routes throughout the sales person's territory, 4) creating a time management plan for scheduling time for administrative tasks, service tasks, and addressing customer issues, 5) using the following specialized tools: a targeted account report (see FIG. 19 for an example of a paper or spreadsheet version; see FIG. 9a as an alternate example of a software embodiment using this same basic idea), a sales campaign worksheet (see FIG. 18 for the paper or spreadsheet version as described here; this may alternatively be embodied in software using this same basic idea), and a competition worksheet.

[0056] The targeted account report details the specifics of the sales person's next action and reports the latest activity with the targeted accounts. It comprises the following criteria: account name associated strategy, next scheduled action, results, and notes.

[0057] A sales campaign worksheet (see FIG. 18 for the paper or spreadsheet version as described here; this may alternatively be embodied in software using this same basic idea) is used to define and plan the sales person's sales campaigns based on account segments, sales goals, and other criteria. It comprises the following criteria: campaign name and description, campaign owner, target market(s), source(s), number of contacts, entry point (primary contact), problem/business issue, qualifying question(s), the solution, customer example, targeted number of sales, and the targeted revenue objective.

[0058] The competition worksheet is a report used to identify and evaluate the competition as well as plan activities that will help the sales person's organization overcome the competition's strengths or otherwise exploit its weaknesses. It comprises the following criteria: 1) competitor, 2) competitor's strengths, and 3) competitor's weaknesses.

[0059] Once the tactical action plan is established, in an example of the invention it is executed (see FIG. 9b as an example of a software embodiment; this may be also executed on paper or using a spreadsheet). To determine how best to execute the plan, the user should consider: How will I motivate myself to meet my activity goals every day? How will I track my key sales metrics and sales results against the goals I have set for myself? How often will I review key metrics and results with my sales manager? How often will I revisit my territory plan and growth strategies with my sales manager (to make adjustments as needed)? How will I reward myself as I meet my activity and productivity goals?

[0060] As an optional step, an execution and follow-up phase is conducted. For this step a territory plan review form, a sales campaign worksheet (see FIG. 18 as an example of a paper or spreadsheet version; this may be alternatively be embodied in software using this same basic idea), and a targeted account report are used to aid in executing and following up with respect to the sales territory plan. It should be used in conjunction with weekly pipeline reports, where the sales person's progress with targeted customers using a list of targeted accounts (see FIG. 9a of an example of a software embodiment and FIG. 19 as an alternate example of a paper or spreadsheet embodiment using this same basic idea) is tracked, sales goals are tracked on a monthly basis in a monthly production review using current sales data as compared against sales goals and other key metrics, quarterly strategy reviews of the same, and annual performance reviews to evaluate sales people based upon their ability to execute their territory level sales plan and modify where necessary for full optimization of the plan.

[0061] A territory plan review form (see FIG. 10b for an example of a paper or spreadsheet embodiment and see FIG. 20 for an alternate example of a software embodiment using this same basic idea) is used for a visual presentation of goals and for goal tracking (the paper or spreadsheet version is as described here; see FIG. 10a for an alternate example of a software embodiment using this same basic idea) over the plan period for both the sales manager's and sales representative's review. The review of the sales territory plan (see FIG. 10b for an example of a paper or spreadsheet embodiment as described here; see FIG. 20 for an alternate example of a software embodiment using this same basic idea) is done on a periodic basis (such as initially and each quarter of the year) and is to be signed off or otherwise authorized by the sales manager and sales representative (i.e., territory manager). The productivity and income goals and results are to be tracked, wherein the 12 month income goal is set and defined, a periodic forecast (such as a quarterly forecast) is determined according to the following criteria: 1) percentage of the year (or other time period with respect to the time period set here), 2) the monetary value representing the sales goal, 3) the actual income being generated for each time period, 4) the percent of goal achieved per time period in question, and 5) the total of the foregoing.

[0062] These steps of the summary of the sales territory planning process are illustrated for another example in FIG. 2. The above described process may be embodied in paper (worksheet) form, or in another embodiment it is in electronic form (e.g., a spreadsheet), or software form (wherein the data may be exported to Excel as in FIG. 11) and aided by computer application. Screen shots showing examples of various embodiments of the steps of the method as viewed by the user utilizing a computer are shown for example in FIGS. 3-11.

[0063] While the present invention has been described in conjunction with embodiments thereof, modifications and variations will be apparent to those of ordinary skill in the art. The foregoing description and the following claims are intended to cover all such modifications and variations.