How to Assign Sales Territories

The Territory Assignment Challenge

Most sales teams assign territories randomly or based on convenience. They don't consider rep-territory fit. They don't match skills to requirements. They don't optimize for performance.

Poor territory assignment creates problems. Reps struggle with territories that don't match their skills. Performance suffers. Satisfaction decreases. Turnover increases.

Here's how to assign sales territories — how to match reps to territories strategically for performance and satisfaction.

Why Territory Assignment Matters

Territory assignment matters because it affects performance, satisfaction, and retention.

Performance: Good rep-territory fit improves performance. Reps perform better in territories that match their skills and preferences.

Satisfaction: Good assignments improve satisfaction. Reps feel matched to territories that fit them.

Retention: Good assignments improve retention. Reps stay longer when they're matched well.

Why it matters: Poor assignments hurt performance and satisfaction. Good assignments enable both.

Factors to Consider

When assigning territories, consider:

Rep Skills and Experience

What to consider:

• Rep experience level
• Rep skills and strengths
• Rep industry expertise
• Rep product knowledge

Why it matters: Rep skills should match territory requirements.

How to use: Match experienced reps to complex territories. Match specialized reps to industry-specific territories.

Rep Capacity

What to consider:

• How many accounts rep can manage
• Rep workload capacity
• Rep time availability
• Rep administrative capacity

Why it matters: Territories should match rep capacity.

How to use: Match high-capacity reps to large territories. Match lower-capacity reps to smaller territories.

Rep Preferences

What to consider:

• Rep geographic preferences
• Rep industry preferences
• Rep account size preferences
• Rep work style preferences

Why it matters: Rep preferences affect satisfaction and performance.

How to use: Consider rep preferences when possible. Match reps to territories they prefer.

Territory Requirements

What to consider:

• Territory complexity
• Territory account types
• Territory industry focus
• Territory geographic requirements

Why it matters: Territories have different requirements. Match reps who can meet them.

How to use: Match rep skills to territory requirements.

How to Assign Territories

Here's how to assign territories strategically:

Step 1: Assess Rep Capabilities

What to do:

• Evaluate rep experience and skills
• Assess rep capacity and workload
• Understand rep preferences and strengths
• Review rep performance history

Why it matters: You can't assign well without understanding reps.

How to do it: Review rep profiles, performance data, and preferences. Talk to reps.

Step 2: Assess Territory Requirements

What to do:

• Evaluate territory complexity
• Assess territory account types and requirements
• Understand territory industry focus
• Review territory performance history

Why it matters: You can't assign well without understanding territories.

How to do it: Review territory profiles, account data, and performance metrics.

Step 3: Match Reps to Territories

What to do:

• Match rep skills to territory requirements
• Match rep capacity to territory workload
• Consider rep preferences when possible
• Ensure good fit

Why it matters: Good matches improve performance and satisfaction.

How to do it: Compare rep capabilities to territory requirements. Make matches strategically.

Step 4: Test Assignments

What to do:

• Review assignments for fit
• Check for imbalances
• Ensure all territories are covered
• Verify assignments make sense

Why it matters: Testing prevents poor assignments.

How to do it: Review each assignment. Check for fit and balance.

Step 5: Communicate Assignments

What to do:

• Communicate assignments clearly
• Explain rationale for assignments
• Address rep concerns
• Set expectations

Why it matters: Clear communication prevents confusion and resistance.

How to do it: Announce assignments. Explain why. Address questions.

Assignment Strategies

Here are strategies for assigning territories:

Match Skills to Requirements

Strategy: Match rep skills to territory requirements.

When to use: When territories have specific requirements.

How to do it: Identify territory requirements. Match reps with matching skills.

Example: Match reps with healthcare expertise to healthcare territories.

Match Capacity to Workload

Strategy: Match rep capacity to territory workload.

When to use: When territories have different workloads.

How to do it: Assess rep capacity. Match to territory workload.

Example: Match high-capacity reps to large territories.

Consider Preferences

Strategy: Consider rep preferences when assigning.

When to use: When preferences don't conflict with requirements.

How to do it: Ask about preferences. Consider when possible.

Example: Assign reps to preferred geographic regions when possible.

Balance Experience

Strategy: Balance experience across territories.

When to use: When territories vary in complexity.

How to do it: Mix experienced and less experienced reps. Match experience to complexity.

Example: Assign experienced reps to complex territories, less experienced to simpler ones.

Common Assignment Mistakes

Here are common mistakes to avoid:

Assigning Randomly

The mistake: Assigning territories randomly or based on convenience.

Why it's wrong: Ignores rep-territory fit. Creates poor matches.

The fix: Assign strategically. Match reps to territories that fit.

Ignoring Rep Capacity

The mistake: Assigning territories without considering rep capacity.

Why it's wrong: Territories that exceed capacity lead to burnout.

The fix: Consider rep capacity. Match territories to capacity.

Not Considering Preferences

The mistake: Ignoring rep preferences entirely.

Why it's wrong: Reduces satisfaction and performance.

The fix: Consider preferences when possible.

Not Testing Assignments

The mistake: Making assignments without testing for fit.

Why it's wrong: May create poor matches.

The fix: Test assignments. Review for fit.

The Bottom Line

Assigning sales territories requires:

• Assess rep capabilities — Experience, skills, capacity, preferences
• Assess territory requirements — Complexity, account types, industry focus
• Match strategically — Match reps to territories that fit
• Test assignments — Review for fit and balance
• Communicate clearly — Explain assignments and rationale

Assignment strategies: Match skills to requirements, match capacity to workload, consider preferences, balance experience.

Common mistakes: Assigning randomly, ignoring capacity, not considering preferences, not testing assignments.

The sales teams that succeed aren't the ones that assign territories randomly. They're the ones that assign strategically — matching reps to territories that fit their skills, capacity, and preferences.

That's how you assign sales territories — by matching reps to territories strategically for performance and satisfaction.