Territory Planning for Enterprise Sales Teams
Territory Planning for Enterprise Sales
Enterprise sales is different. Accounts are larger. Sales cycles are longer. Relationships matter more. Territory planning for enterprise sales requires a different approach.
Most enterprise sales teams struggle with territory planning. They try to use simple geographic or industry-based territories. They don't account for account complexity, relationship requirements, or sales cycle length. They end up with territories that don't work.
Here's how to do territory planning for enterprise sales teams — how to plan territories for complex sales environments and large accounts.
Why Enterprise Territory Planning Is Different
Enterprise territory planning is different because:
Account Complexity
What it means: Enterprise accounts are complex. They have multiple stakeholders, complex buying processes, and long sales cycles.
Why it matters: Account complexity affects territory planning. You can't manage enterprise accounts like SMB accounts.
How it affects planning: Enterprise territories need fewer accounts, more focus, and deeper relationships.
Relationship Requirements
What it means: Enterprise sales requires deep relationships. You need to build relationships with executives, understand account dynamics, and navigate complex organizations.
Why it matters: Relationship requirements affect territory capacity. Reps can't manage as many enterprise accounts.
How it affects planning: Enterprise territories need to account for relationship-building time and capacity.
Sales Cycle Length
What it means: Enterprise sales cycles are long — 6-18 months or longer. Deals take time to develop and close.
Why it matters: Long sales cycles affect territory planning. Reps need time to develop deals.
How it affects planning: Enterprise territories need to account for sales cycle length and pipeline development.
Account Potential
What it means: Enterprise accounts have high potential — $500K+ deals, multi-year contracts, expansion opportunities.
Why it matters: High potential affects territory balance. You balance by potential, not count.
How it affects planning: Enterprise territories balance by account potential, not account count.
Enterprise Territory Planning Approach
Here's how to plan territories for enterprise sales:
Focus on Named Accounts
What to do: Plan territories around named accounts, not geography or industry alone.
Why it matters: Enterprise sales is account-focused. Named accounts drive pipeline.
How to do it: Identify named accounts. Assign to territories. Plan around accounts.
Example: Territory A: 10 named accounts with $5M potential. Territory B: 10 named accounts with $5M potential.
Balance by Account Potential
What to do: Balance territories by account potential (revenue opportunity), not account count.
Why it matters: Enterprise accounts vary in potential. Balancing by count creates imbalances.
How to do it: Calculate account potential. Balance territories by potential. Adjust as needed.
Example: Territory A: $5M potential. Territory B: $5M potential. They're balanced, even if account counts differ.
Consider Relationship Capacity
What to do: Consider rep capacity for building and maintaining relationships.
Why it matters: Enterprise sales requires relationship-building. Reps have limited relationship capacity.
How to do it: Assess rep relationship capacity. Match territories to capacity.
Example: Senior rep manages 10 enterprise accounts. Junior rep manages 5 enterprise accounts.
Account for Sales Cycle Length
What to do: Account for long sales cycles when planning territories.
Why it matters: Long sales cycles affect territory capacity and pipeline development.
How to do it: Consider sales cycle length. Plan for pipeline development time.
Example: With 12-month sales cycles, reps need time to develop pipeline. Plan territories accordingly.
Minimize Account Count
What to do: Minimize account count per territory. Focus on fewer, higher-potential accounts.
Why it matters: Enterprise accounts require focus. Too many accounts dilutes effort.
How to do it: Limit account count. Focus on high-potential accounts.
Example: Enterprise territories might have 5-15 accounts, not 50-100.
Enterprise Territory Structure
Here's how to structure territories for enterprise sales:
Account-Based Territories
What it is: Territories based on named accounts — specific companies assigned to specific reps.
When to use: For enterprise sales with strategic accounts.
Pros: Focuses on key accounts, enables deep relationships, optimizes for account potential.
Cons: May create imbalances, requires careful assignment.
How to structure: Assign named accounts to reps. Balance by account potential. Limit account count.
Industry-Focused Territories
What it is: Territories based on industry verticals with named accounts within industries.
When to use: When industry expertise matters for enterprise sales.
Pros: Enables specialization, builds expertise, improves messaging.
Cons: May create imbalances, ignores geography.
How to structure: Assign industry accounts to reps. Balance by potential. Focus on named accounts.
Hybrid Territories
What it is: Combination of account-based and industry-focused approaches.
When to use: When multiple factors matter for enterprise sales.
Pros: More flexible, can optimize for different needs.
Cons: More complex, harder to manage.
How to structure: Combine account and industry approaches. Balance by potential. Focus on named accounts.
Best Practices for Enterprise Territory Planning
Here are best practices:
Focus on Named Accounts
What to do: Plan territories around named accounts, not geography or industry alone.
Why it matters: Enterprise sales is account-focused. Named accounts drive pipeline.
How to do it: Identify named accounts. Assign to territories. Plan around accounts.
Balance by Potential
What to do: Balance territories by account potential, not account count.
Why it matters: Enterprise accounts vary in potential. Balancing by count creates imbalances.
How to do it: Calculate potential. Balance territories. Adjust as needed.
Consider Relationship Capacity
What to do: Consider rep capacity for building and maintaining relationships.
Why it matters: Enterprise sales requires relationship-building. Reps have limited capacity.
How to do it: Assess capacity. Match territories to capacity.
Minimize Account Count
What to do: Minimize account count per territory. Focus on fewer, higher-potential accounts.
Why it matters: Enterprise accounts require focus. Too many accounts dilutes effort.
How to do it: Limit account count. Focus on high-potential accounts.
Review Regularly
What to do: Review territories regularly. Adjust as accounts grow or change.
Why it matters: Enterprise accounts evolve. Territories need to evolve with them.
How to do it: Review quarterly or annually. Adjust as needed.
Common Mistakes
Here are common mistakes to avoid:
Using SMB Territory Models
The mistake: Using SMB territory models (high account count, geographic focus) for enterprise sales.
The fix: Use enterprise territory models (low account count, account-focused).
Balancing by Count
The mistake: Balancing territories by account count for enterprise sales.
The fix: Balance by account potential, not count.
Ignoring Relationship Capacity
The mistake: Not considering relationship-building capacity for enterprise sales.
The fix: Consider relationship capacity. Match territories to capacity.
Too Many Accounts
The mistake: Assigning too many accounts to enterprise reps.
The fix: Minimize account count. Focus on fewer, higher-potential accounts.
The Bottom Line
Territory planning for enterprise sales requires:
- Focus on named accounts — Plan around accounts, not geography or industry alone
- Balance by potential — Balance by account potential, not count
- Consider relationship capacity — Account for relationship-building requirements
- Account for sales cycle length — Plan for long sales cycles
- Minimize account count — Focus on fewer, higher-potential accounts
Territory structure: Account-based, industry-focused, or hybrid territories.
Best practices: Focus on named accounts, balance by potential, consider capacity, minimize count, review regularly.
Common mistakes: Using SMB models, balancing by count, ignoring capacity, too many accounts.
The enterprise sales teams that succeed aren't the ones that use SMB territory models. They're the ones that plan territories for enterprise sales — focusing on named accounts, balancing by potential, and accounting for relationship requirements.
That's how you do territory planning for enterprise sales teams — by focusing on named accounts, balancing by potential, and accounting for enterprise sales requirements.