Sales Coverage Strategy

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In this week’s Your GTM Insider, we’re discussing sales coverage strategy. This is a natural follow-up to last week’s topic: Account Segmentation.

By segmenting accounts first, companies can tailor sales coverage more strategically. They can align resources with the potential value and specific needs of each segment. This enables higher average revenue per sales rep and maximizes the chances of successful sales outcomes.

Let’s recap account segmentation, then transition to sales coverage.

Account segmentation summary

This is the process of dividing a company’s customer base into groups with similar characteristics or needs. The outcome of this work enables a more fine-tuned marketing and sales approach. Read more on the importance of getting account segmentation right.

What is sales coverage?

Sales coverage is the allocation of resources to manage territories, accounts, and prospects. By resources, we mean salespeople, sales managers, and customer service representatives. The goal is to ensure potential and existing customers get the "right amount" of sales attention.

Common questions are how many reps are needed? Where should reps be? How should they spend their time? On what accounts or territories? And so on. Answers to these questions help maximize sales efficiency and revenue.

Sales coverage can take various forms

Without getting into the weeds, there are two types of sales coverage: direct and indirect sales. Direct sales involves employing a team of sales representatives. They directly engage with customers to sell products or services. Indirect sales is the use of third-party channels like distributors, resellers, or partners. Read more in The Ultimate Guide to Growing Channel Sales.

We focus on direct sales here.

Why is effective sales coverage essential?

Smart sales coverage is essential. It directly impacts the sales organization's performance and efficiency. Here are some key reasons why it's crucial:

  • ‍Optimal resource allocation. Effective sales coverage ensures allocation of sales resources maximizes returns. This includes personnel and budget. It helps in assigning the right number of sales reps to each territory or account segment. This avoids both under-coverage (missing potential sales) and over-coverage (wasting resources).
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  • Increased sales efficiency. With proper sales coverage, sales teams can focus their efforts more efficiently. They spend less time on low-potential leads and more on high-value opportunities. This prioritization increases the likelihood of closing deals and achieving higher sales productivity.
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  • Improved customer relationships. Enough coverage lets sales reps spend the needed time with customers and prospects. This time is vital for building strong relationships. This engagement helps to understand customer needs better. It leads to better selling and higher customer satisfaction.‍
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  • Enhanced revenue growth. Companies can maximize revenue by covering all potential sales opportunities well. Effective coverage prevents gaps where opportunities might be overlooked. It ensures the sales team can capitalize on every viable prospect.
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  • ‍Strategic market penetration. Sales coverage strategies help companies reach new markets. They also help companies expand in existing markets. They do this by putting sales resources in high-opportunity areas. This strategic approach to market penetration supports long-term growth and sustainability.‍
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  • Adaptability to market changes. Good sales coverage plans are flexible. They flex based on markets and feedback. Adaptability is key for responding to competition, changing markets, and customer needs.

Determining the “right” sales coverage for your business

To find the best sales coverage strategy for your business, you need to analyze these factors.

  • ‍Market segmentation. First, divide your target market into segments. Base the divisions on criteria like industry, location, company size, or purchasing behavior. This split lets you customize your sales approach. You can do so to fit the needs and preferences of each segment.
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  • ‍Customer profiling. Develop detailed profiles of your ideal customers. Do this within each segment. Include their demographics, pain points, buying behaviors, and preferred communication channels. This information will guide your sales coverage strategy. It will help you prioritize resources where they will likely yield results.
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  • Sales cycle length. Consider the typical length and complexity of your sales cycle. Sales cycles are often long and complex, like those for high-value enterprise solutions. They may need a more personalized sales approach. Shorter sales cycles may be better for a high-volume sales model.
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  • Resource allocation. Assess your available resources, including sales personnel, budget, and technology infrastructure. Find how to allocate these resources for maximum sales and efficiency. Don't overextend.
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  • ‍Performance metrics. Set KPIs to measure the effectiveness of your sales coverage strategy. KPIs include conversion rates, customer acquisition costs, and sales speed. Regularly monitor and analyze these metrics to identify areas for improvement and optimization.
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  • Flexibility and adaptability. Business is always changing. So, it's essential to stay flexible in your sales approach. Continuously monitor market trends, customer feedback, and rivals. Be ready to adjust your strategy to stay ahead of the curve.

Technology and automation

Sales technology and automation can streamline sales. It can automate routine tasks like data entry and lead qualification. AI-driven analytics can provide insights into how customers behave and what they like. This enables personalized and effective sales strategies. This frees up time for sales reps. They can now focus on better prospects and closing deals.

Wrap-Up

Sales coverage plays an essential role in enabling revenue growth. If well-designed and implemented, it provides reach, engagement, and conversion of potential customers. For it to work, the strategy must fit your business needs. When it does, you can unlock new opportunities. You can drive revenue growth and keep a competitive edge.

Want Help?

We help clients improve revenue performance. We do this by bringing a fresh perspective to sales, sales enablement, and marketing. We pack our weekly newsletter series with relevant, practical nuggets. Does a particular topic interest you? Explore the archive.

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