How to Assign Sales Territories to Reps
Assign sales territories to reps in a way that balances workload, maximizes coverage, and accounts for geography including states, counties, metro areas, and urban vs rural dynamics.
When to Use This Guide
- ✓Onboarding new sales reps and assigning areas
- ✓Restructuring territories after team changes
- ✓Expanding into new states or regions
- ✓Balancing uneven workloads across the team
- • Complete list of accounts and customers
- • Customer location data (state, city, GPS coordinates)
- • Current sales rep roster and capacity
- • Historical sales data by region
List All Accounts and Their Locations
Compile a complete list of every account, including their physical location, revenue potential, and visit frequency requirements.
Export your customer database with state, county, city, and GPS coordinates. Include revenue, order frequency, and account tier. Pay attention to cross-state accounts and accounts in metropolitan vs rural areas.
Export 450 accounts: 180 in the Northeast metro area, 120 in the Southeast region, 80 in the Midwest, 70 spread across other regions. Tag each with revenue tier: A ($500K+), B ($100K-$500K), C (<$100K).
- • Include GPS coordinates for every account for accurate mapping
- • Tag accounts by county or zip code for granular territory design
- • Flag cross-border accounts that straddle two states or regions
- • Missing accounts from the master list leading to coverage gaps
- • Using outdated addresses from accounts that have relocated
- • Ignoring smaller retail accounts in underserved areas
Map Locations and Identify Clusters
Plot all accounts on a map to visualise geographic clusters and identify natural territory boundaries.
Use mapping software to plot accounts by GPS coordinates. Look for natural clusters around metro areas, along major highway corridors, and in rural areas. Territories often follow state or county boundaries, but dense metro areas may need multiple territories within a single city.
Mapping 180 metro-area accounts reveals 4 clusters: City North (downtown/business district - 55 accounts), City South (suburban commercial zones - 40 accounts), Northern suburbs (45 accounts), Eastern corridor (40 accounts). Each cluster forms a natural territory.
- • Use color coding to show account tiers on the map
- • Identify areas with sparse coverage that might need combined territories
- • Consider toll roads and traffic patterns when drawing boundaries
- • Drawing territories based on geography alone without considering revenue
- • Ignoring traffic congestion that makes close accounts hard to reach
- • Creating territories that cross major geographic barriers (rivers, mountain ranges, highways)
Balance Workload Across Territories
Ensure each territory has a fair balance of accounts, revenue potential, and travel time so no rep is overloaded or underserved.
Calculate workload per territory using accounts x visit frequency + travel time. Aim for territories within 15-20% of each other in total workload. Rural territories will have fewer accounts but more travel time, while urban territories will have more accounts but less travel. Balance accordingly.
Territory A (City North): 55 accounts, avg 2 visits/month = 110 visits + 15 min avg travel = 27.5 hrs/month. Territory B (Rural county): 25 accounts, avg 1.5 visits/month = 37.5 visits + 45 min avg travel = 28 hrs/month. Workloads are balanced despite different account counts.
- • Weight revenue potential alongside account count
- • Factor in rural travel distances which can be significant
- • Consider seasonal weather impacts on specific areas for scheduling
- • Balancing only by account count without considering travel time
- • Giving new reps the hardest rural territories
- • Not accounting for seasonal variations in different regions
Assign Reps to Territories
Match reps to territories based on experience, language skills, existing relationships, and proximity to the territory.
Consider rep strengths: a rep with local language proficiency may be best suited for a specific region, while someone with existing relationships in a metro area should stay there. Factor in where reps live to minimize dead travel time. Local language proficiency and cultural familiarity can be a significant advantage in certain territories.
Assign Rep A (based near the northern territory, strong local relationships) to the North region. Assign Rep B (based downtown, strong corporate relationships) to the City North territory. Assign Rep C (based in the suburbs, experienced with rural accounts) to the outlying county territory.
- • Match local knowledge and language capabilities to territory demographics
- • Prioritize existing customer relationships over geography
- • Ensure reps live within reasonable commute of their territory
- • Assigning territories without consulting the reps
- • Ignoring cultural fit for the territory
- • Placing reps far from their home base increasing travel fatigue
Review and Adjust Quarterly
Review territory assignments every quarter, using performance data and market changes to make adjustments.
Track territory performance metrics: revenue vs target, visit completion rate, new account acquisition, and customer satisfaction. Compare territories to identify imbalances. Account for economic changes in specific regions (industry downturns, construction booms) that shift territory potential.
Q1 review shows: Territory A (City North) at 120% target, Territory D (Southern region) at 65% target. Investigate: Southern region had 15 accounts close due to economic downturn. Action: Reallocate 10 accounts from underperforming territory to metro rep, reduce Southern target by 20%, add 8 new prospect accounts in the nearby growth corridor.
- • Set calendar reminders for quarterly territory reviews
- • Use data dashboards to track territory KPIs continuously
- • Get rep input on territory challenges and opportunities
- • Never reviewing territories after initial assignment
- • Making too many changes too frequently disrupting relationships
- • Ignoring rep feedback about territory viability
Formulas & Examples
workload Formula
Territory Workload = (Number of Accounts x Visits per Month) + (Avg Travel Time per Visit x Total Visits)example Scenario
{
"territories": 4,
"totalAccounts": 200,
"avgAccountsPerTerritory": 50,
"targetWorkloadVariance": "Within 15-20%"
}Recommended Tools
SalesProHub territory mapper
Google Maps for plotting accounts
Spreadsheet for workload calculations
CRM with territory management
Frequently Asked Questions
How many accounts should each rep manage?
It depends on visit frequency and travel time. In urban metro areas, 50-80 accounts is typical. In rural regions, 20-40 accounts may be a full workload due to travel distances.
Should territories follow state or regional boundaries?
State or regional boundaries are a good starting point, but dense metro areas often need multiple territories within the same state. Use county or zip code boundaries for finer-grained territory design.
How often should I restructure territories?
Review quarterly but only restructure when there is a clear imbalance (>25% workload variance) or after significant team changes. Frequent restructuring disrupts customer relationships.
Related Guides
How to Plan Sales Territory Effectively for Maximum Coverage
AdvancedDesign sales territories that balance workload, opportunity, and geography to maximize team productivity and market coverage.
How to Build a Beverage Distribution Route
IntermediateBuild efficient beverage distribution routes that cover bars, liquor stores, convenience stores, and retail chains across your territories, minimizing travel time and maximizing delivery efficiency.
How to Set Up GPS Tracking for Sales Reps
BeginnerSet up GPS tracking for your sales reps to verify customer visits, monitor field activity, and optimize routes while staying compliant with GDPR and privacy regulations and respecting rep privacy.
Need Expert Help?
Our team can help you implement these strategies
Talk to an Expert