Key takeaways
While heat maps are most commonly used to present numerical data, they are a multifaceted tool with various applications and industries. Heat maps show density zones such as hot and cold zones. They also make it easier to identify data peaks and valleys, such as regions with high or poor sales performance.
The first step is to collect account data from the CRM and other sources. This includes industry, revenue potential, account size, location, sales history, etc. You need to identify key factors about each client that will determine the grouping. Other useful account information includes strategic significance, purchase triggers, and contractual obligations. Platforms must look for customers and segments that increase spending over time or have a shorter sales cycle.
Next, collect sales metrics, sales data, and market demographics. Analyze market growth rates, industry trends, historical sales patterns, and productivity. This will help you spot geographic differences and growth opportunities to factor into territory mapping.
Defining clear goals and targets for employees, ideally via reliable mapping software for sales reps, is a critical but often overlooked part of territory management. It lends focus to the planning process and a means of measuring success once the plan is executed. Examples of territory planning goals include improving sales rep efficiency via tighter geographic alignment, increasing sales revenue by 15% in specific territories, and focusing on high-value clients by ensuring reps can cover key targets effectively. Additionally, mapping software makes it possible to expand into new markets by utilizing the potential of emerging customer segments, e.g., creating territories.
Individual reps should have goals in addition to territory-based ones. They should align with the overall corporate objectives, such as upselling 30% of customers from basic to premium, raising the renewal rate for existing customers to 85%, and generating 55 new qualified leads monthly. The goals should be adapted to the rep’s specific capabilities, territory, and market conditions.
Organizations should group accounts by industry to assign reps who understand the niche. The key here is to look at win rates by rep and industry. When grouping, organizations should consider potential revenue and account size. Larger accounts deserve dedicated territories. They should also consider customer growth potential and lifecycle.
After finalizing the territory plan, communicating the details to the sales reps tasked with its execution is crucial. You should present the plan clearly and compellingly. Ideally, you would schedule a call or meeting with each rep to present the new territory and address any concerns. The plan should be designed to provide the rep with high-potential accounts aligning with their experience and skills.
Outline the impact on their quota and compensation based on the new territory, ask for feedback, and adjust as needed. Not onboarding reps accordingly increases the risk of failed territory plan execution. HubSpot reports that involving reps in planning can enhance territory plan adoption rates by as much as 158%.
Focusing on Areas of High Values: The sales team can focus on a better effort in promising territories by identifying areas with a high concentration of proper prospects. It mainly allows the team to efficiently use their resource and time by focusing on areas with better conversion potential.
Enhanced Route Planning: Lead density heatmaps help Sales Representatives plan their routes more efficiently. By grouping high-density areas, the team can minimize travel time and increase the number of leads they receive daily.
Effective Resource Allocation: The sales team can allocate their resources much more efficiently without complications based on the lead density in different areas. For instance, in low-density areas, they can provide minimal support; meanwhile, in high-density territories, they can assign their veteran representative to maximize better output.
Market Identification: Heat maps help you identify markets with open opportunities. By placing the state of the market, companies can gain a competitive advantage. To elaborate, heatmaps identify the market by determining where it is underserved. Therefore, companies often rely on heatmaps to take advantage of the market.
Deeper Insight on the Market: Lead density data analysis helps the sales team get a detailed overview of their selected market. Using this data, they can monitor emerging trends, learn about customer preferences, and identify areas with potential.
Track Progress: Sales teams can use heat maps to track the progress of the sales campaign and calculate the ROI of different heat map strategies (return on investment). By critically analyzing the performance of each territory, the team can identify areas for improvement. Hence, the team can polish its approach for distinctive territories.
Minimal Time Waste: By focusing on high-density areas, sales representatives can stop wasting time traveling to unproductive territory. This allows the team to spend more time on more productive activities, such as completing deals and developing customer relationships.
Better Sales Forecasting: The team can make more accurate forecasts for cast-on sales by examining lead data density. It continuously allows the team to allocate innovative resources, sales targets, and inventory.
Assemble all vital data from CRM Systems, market databases (research), and third-party data suppliers. Ensure that the data you collect is accurate, updated, and applicable to the preferred or targeted market.
Choose a mapping tool that is easy and efficient to use. Make sure it seamlessly integrates with your CRM system. Additionally, ensure that it provides you with all the vital data to accurately analyze the lead density heatmaps.
Use the mapping tool you selected to generate heat maps that visualize the leads across the designated territories. Study the data to discover markets with untapped potential, high density, and obstacles.
The data you get from the heatmaps, based on those data, try creating and improving your surveying market. Optimize your sales data, prioritize high-density locations, and lastly, make sure to use your resources effectively and without wastage.
Never stop monitoring your performance and the progress of your implemented strategy. Adjust your strategy and plans accordingly and dynamically. Track your ROI, key metrics, and other data to ensure the effectiveness of your heat maps.
Implementing effective strategies with lead density heatmaps for territory-based sales teams will significantly boost your company's sales. However, all steps must be taken correctly to ensure a strong result. Furthermore, keep monitoring and adjusting as the market is always dynamic. Lastly, use the lead density heatmaps to assign your team correctly for better results.
Determine your most successful accounts by assessing geographical factors, industry trends, revenue, company size, technographics, etc. Set business targets and goals and allocate resources most conducive to achieving those goals. Finally, a strategy is deployed, and performance is measured.
These include retail, healthcare, logistics, sports facilities, and others. Few industries would benefit from the insights heat mapping tools provide.
Businesses can identify high-traffic areas and popular products and optimize marketing strategies and product placement to boost sales.
Cover Photo by KOBU Agency on Unsplash
* This post is written in collaboration with our guest contributor, who has financially supported its publication.
Alex Quin is a full-stack marketing expert and global keynote speaker. Founder and Chief Marketing Officer of UADV Marketing - a member of the Forbes Agency Council.
