Sales territory alignment is the process of redistributing or reallocating territories and among

salespeople in order to optimize efficiency and maximize profit.

A sales territory is the customer group or geographical area for which an individual salesperson or a
sales team holds responsibility. Territories can be defined on the basis of geography, sales potential,
history, or a combination of factors.

When territories are out of balance, too much effort is deployed against low potential customers
and too little is deployed against many high potential customers.

Good sales territories enhance customer coverage, increase sales, foster fair performance evaluation
and reward systems, and lower travel costs.

We recommend that sales organizations audit their alignment at least once a year to ensure their
territories are keeping pace with market and demographic change. Another way sales organizations
can maintain a good territory alignment is hy managing territory vacancies. Salesperson turnover
creates opportunities for sales organizations to redeploy sales effort without relocating salespeople.
A vacant territory in a k)w potential area can be closed down, and a new person can be hired in
another location with greater opportunity