© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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CHAPTER 15
Managing Your
Time and Territory
Some questions answered in this chapter are:
• Why is time so valuable for salespeople?
• What can you do to “create” more selling time?
• What should you consider when devising a territory
strategy?
• How does territory strategy relate to account strategy
and building partnerships?
• How should you analyze your daily activities and sales
calls?
• How can you evaluate your own performance so that
you can improve?
15-2
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“My biggest mistake was the idea that
the quantity of the calls was more
important than the quality.”
~Susan Flaviano
Lonseal
15-3
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The Value of Time
8 hours x 240 days = 1920 hours per year
$40,000  1920 = $20.83 per hour
$50,000  1920 = $26.04 per hour
• Salespeople must make every hour count to be
successful
• Allocating resources well often spells the
difference between stellar and average
performance
15-4
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The Self-Management Process
• Stage One
– Set goals and determine what is to be
accomplished
• Stage Two
– Allocate resources and determine strategies to
meet your goals
• Stage Three
– Implement time management strategies
• Stage Four
– Evaluate performance and determine whether
the goals will be reached
15-5
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The Self-Management Process
15-6
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Setting Goals
• The need for goals
• The nature of goals
• Types of sales goals
– Performance goals
– Activity goals
– Conversion goals
15-7
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The
Relationship of
Goals
15-8
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Goal Calculations
Monthly earnings goal (performance goal):
$6000
Commission per sale:
$750
$6000 earnings  $750 per sale = 8 sales
Monthly sales goal (performance goal):
8
Closings goal (conversion goal):
10 %
8 sales x 10 prospects per sale = 80 prospects
Monthly prospect goal (performance goal):
80
Prospects per calls goal (conversion goal):
1 in 3
80 prospects x 3 calls per prospect = 240 calls
Monthly sales calls goal (activity goal):
240
240 calls  20 working days per month = 12 calls
Daily sales calls goal (activity goal):
15-9
12
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Setting Sales Goals
• Performance and conversion goals
are the basis for activity goals.
• Activity goals must be the last goals
set because they are determined by
the desired level of performance at a
certain rate of conversion.
• Conversion rates are affected by the
salesperson’s strategy.
15-10
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Allocating Resources
• Resources to be allocated
• Where to allocate resources
• Account classification and resource
allocation
15-11
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Allocating Resources (continued)
• Grid analysis
– Classifies accounts on the basis of the
company’s competitive position and sales
potential
– Account opportunity
– Strength of position
• ABC analysis
– Ranks accounts by sales potential
• The grid and current customers
– Customer share
– Account share
15-12
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Allocating Resources (continued)
• Customer relationship management
(CRM) software
– One database of customers
– More complete grid analysis
– Pipeline analysis
• Investing in accounts
– Allocating the appropriate amount of
time and resources to accounts
15-13
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Implementing the
Time Management Strategy
•
•
•
•
Start early
Manage responsiveness
Schedule in advance
Use down time wisely
15-14
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Implementing the Time Management
Strategy (continued)
• Daily activity planning
• Guidelines
• Planning process
– Using the computer for planning
– Need for flexibility
15-15
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Activities Planning Process
15-16
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Making More Calls
• Routing
– Routine call patterns
– Variable call patterns
• Types of routing plans
–
–
–
–
Circular routing
Leapfrog routing
Straight-line routing
Cloverleaf routing
15-17
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The Circular Approach to Routing
15-18
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The Leapfrog Approach to Routing
15-19
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The Straight-line Approach to Routing
15-20
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The Cloverleaf Approach to Routing
15-21
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Making More Calls (continued)
• Zoning
• Using e-mail and telephone
15-22
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Handling Paperwork and Reports
• Every salesperson should learn to
handle paperwork efficiently
• To minimize paperwork:
– Think positively about paperwork
– Do not let paperwork accumulate
– Set aside a block of nonselling time
• Using the computer to handle
paperwork and communications
15-23
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Evaluating Performance
• Postcall analysis
– Write down what occurred and what needs to
be done
• Activity analysis
– Set activity goals, then analyze
• Performance analysis
– Evaluate performance relative to performance
goals set earlier
• Productivity analysis
• Identify which strategies work
15-24
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Summary
• A sales territory can be viewed as a small
business.
• Managing a territory involves setting
performance, activity, and conversion
goals.
• To manage customers well, salespeople
must analyze their potential.
• More calls can be accomplished by moving
nonselling activities to nonselling time.
• Effective planning of the salesperson’s day
requires setting aside time for important
activities.
• Salespeople must manage their skills.
15-25
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.