Managing Multiple Sales Channels and Territories
Channel and territory management remains one of the primary pain points in the growth of a business, especially those in the SaaS vertical. Misalignment between teams competing for the same prospects and unbalanced workloads across territories may sow confusion, inefficiency, and missed sales opportunities. In this article, we will explore how effective multi-channel and multi-territory sales management could enable your teams to align better with business goals and work more effectively together to achieve better results.
Most Common Sales Structures in SaaS Companies
The various sales modeling options within SaaS companies will have a direct effect on lead generation, conversion rates, and speed to close. Following are three of the most common sales structures:
1. Inside Sales and Outside Sales
Whereas ISRs focus on inbound leads via digital means of communication, such as email, phone, and video calls; this model is cost-effective, easily scalable, and best for SaaS companies where the products can be sold remotely. Outside sales reps or OSRs, on the other hand, are responsible for outbound prospecting and in-person meetings. This model is more expensive but quite useful when it comes to physical products where in-person demos have a lot of value.
- Benefits of Inside Sales: inexpensive, scalable, and ideal for digital products.
- Benefits of Outside Sales: It enables the drive of relationships and provides ample time to engage key decision-makers more closely.
2. Hybrid Sales Model
A hybrid sales model includes selling both inside and outside. Hybrid representatives heavily rely on digital communication tools; however, they visit prospects in person if needed. This model is relatively popular and has gained huge momentum since the outbreak of COVID-19. It works wonders for B2B sales, joining efficiency inside with personal engagement outside, pretty flexible for all kinds of different customer preferences.
3. Account Management vs. New Business Sales
The account manager develops the client relationship and grows it through upselling and cross-selling. In some organizations, there is also a new business sales representative whose singular role is to bring in new customers. Again, the job functions are interdependent: close collaboration between these teams and smooth handoffs are vital in delivering an outstanding client onboarding experience that increases CLTV.
- Account Management: This involves more focus on retaining customers, upselling, and thereby maximizing CLTV.
- New Business Sales: Dedicated to acquiring new customers and generating new business opportunities.
How to Effectively Manage Multiple Sales Channels and Territories
Every company needs predefined guidelines and structures to fully exploit sales performance through channels and territories. Following are some of the best practices that a company can use to manage and align efforts in channel sales:
1. Clear Channel and Territory Definitions
Overlapping or ill-defined sales channels and territories can create confusion quite easily. Because of this, it is a good idea to spell out roles and territories clearly in advance. For example, categorize your territories into segments like customer size, industry, or geographic locations so reps can understand what they are responsible for.
- Territory Segmentation: Divide by industry, customer size, or region to clearly mark off territories for sales reps.
- Channel Clarity: Less confusion and no overlap of customers belonging to the different sales teams.
2. Alignment and Collaboration Across Teams
For companies with multiple sales teams, it’s all about alignment. Sales, marketing, and customer success teams work in harmony to achieve one end goal. Encouraging collaboration between different sales channels helps ensure all teams are playing their part in the success of the business. Encouraged joint lead nurturing, seamless customer handoffs, and team-sell efforts help foster a collaborative sales environment.
3. Performance Management and Feedback
Also, performance metrics for channel and territory are set up to track sales performance. The system also provides regular feedback and coaching to improve performance. Metrics vary: deal closure rate, demo meetings, customer retention, upsell opportunities depending on the sales role. Regular one-on-one or team feedback sessions will help reps stay focused and motivated.
- ISR Metrics: Call numbers, meetings, and deals closed.
- Metrics of OSR: Demos, meetings, and proposals.
- AM Metrics: Retention rate, account growth, CLTV.
- New Business Metrics: Deals created, demos completed.
4. Leverage Technology and Tools
Sales teams need to have the right tools for collaboration in a manner that enables access to information themselves. CRM systems, marketing automation, and sales forecasting software are important to support seamless communication and decision-making. These tools let sales teams share data in real time, do better territory planning, and support them with insights to make strategic adjustments in quota and targets.
- CRM Systems: Centralize data and make it more accessible for sales teams to keep track of each customer interaction and, therefore, plug information into a system visible to all.
- Sales Forecasting Tools: Use data-driven insights to optimize territory planning and quota settings.
Incentive Strategies for Various Sales Teams
Incentives are definitely one of the prime motivating factors in channel sales teams. Here’s how to create an effective incentive strategy for both individual and team performance:
1. Incentives Aligned with Business Objectives
Incentive plans have to do with reaching certain goals, and the structure follows in line with specific sales roles. One could incentivize ISRs, OSRs, and new business reps through commission-based bonuses that are triggered every time the quotas are surpassed, while account managers need to be rewarded based on customer retention rate, upsells, and cross-sells.
- Tiered Commissions: For ISRs and OSRs, provide commission percentages that increase upon targets being exceeded.
- Account Management Bonuses: Retention bonus based on customer retention goals, such as 95% or more for renewal rate.
2. Balancing Individual and Team Performance
Incentive strategies should reward individual achievement, as well as team collaboration. Provide team-based bonuses or run contests between territories to enable healthy competition while driving teamwork. Individual SPIFFS-meaning Sales Performance Incentive Funds-drive the reps to their key objectives; team-based rewards create cross-functional collaboration and overall better outcomes.
3. Transparency and Communication
This is because clear communication of the incentive plan works to help reps understand how their performance translates into rewards. Reps will be much more motivated if they understand first how their compensation works out and how they can maximize their earnings.
- Periodic Incentive Reviews: Host regular updates of compensation plans to reflect not only performances but also market conditions and the evolving objectives of the business.
- Clear Communication: Ensure reps clearly understand their incentive structure and apparatus.
Conclusion
It requires clear definitions, alignment across teams, effective performance management, and the right technology. By proceeding with these best practices, businesses better position themselves for selling across teams and territories, ultimately providing growth and overall performance enhancement. Incentive plans customized for each role in sales ensure that feedback and collaboration keep the selling reps motivated and heading in the right direction to achieve goals set by the business.
