Bottom line, a sales coverage model is how a company makes their number. A sales coverage model enables companies to set achievable revenue goals then reach them with thoughtful placement of sales and marketing teams/individuals in the best territories and highest value accounts.
The purpose? To gain business from new and existing accounts with better planning, execution, and allocation of company resources: people/time/money.
In order to develop a well-balanced sales coverage model, you first must review your company's:
- Org chart - who manages who
- Sales process
- Sales cycle
- Revenue from the last ~3 years
- Data and analytics of purchasing behaviors
- Current state of the marketplace/industry/competitors
- Top 20 accounts
- The sales team - existing and upcoming hires
All of this information will aid you in developing a smart sales coverage model. Now that you've reviewed everything, consider the following when building your own:
- Look to the end: start with your final revenue number, and build backwards.
- Know your ratios: i.e # of cold calls to a conversation, # of conversations to a lead, # of leads to opportunities, # of opportunities to a sale. Use CRM and sales insight to make accurate ratios to guide sales goals for indiviudal reps and territories.
- Tie in corporate goals: if you have other corporate objective and strategies, such as sell a certain number of units, restructure the sales team, new product launch, consider those when building your sales coverage model.
- Use data: without proper data and analytics, you're shooting blind. Use data from your CRM, industry reports, etc. to determine buying behaviors, customer engagement, industry changes, hot markets, and how your sales team operates to allocate sales resources effectively.
- Segment your accounts: don't forget, everyone is not your prospect; prioritize "sweet spot" prospects and markets, and place the right sales reps in the right areas/accounts to match their skills and expertise.
- Factor in account management: if you have reps already managing certain accounts, make sure to keep this in mind. Dont forget the importance of relationship on the sale, and don't needlessly tear apart relationships integral to your business.
- Map to sales process: for a smooth transition of leads, map the sales coverage model to the sales process, to show which sales resources are involved where, and the expectations of them.
- Communicate to the sales team: lastly, to gain buy-in and adoption, as well as set expectations, be transparent with the sales coverage model with the sales team.
A sales coverage model doesn't need to be complex, but it does need to be thorough. Work with Sales Operations to map your territories, allocate resources, and develop your sales coverage model.
Don't have a Sales Ops team, or need help? Consider SRi's Sales Operations solution for third-party operational expertise and support.