Territory Coverage – a useful performance indicator

# 52 March 2017

Territory Coverage is a performance indicator measuring the number of customers the sales people have visited in their sales districts during a specific period. (The term ”district” is used to describe the set of customers a sales person is responsible for, which could be organised by geography, industry segment or just a list of named accounts).

It is common in sales organisations to follow up sales people on how they drive their business opportunities – i.e. how good they are at finding new opportunities, developing them and winning the deals. In some industries sales people don’t conduct their business like this, which means you need other metrics when following up.

Following up on territory coverage could be an alternative instead. It is particularly useful in industries where sales people work their customer base primarily through repetitive sales calls, for example following up on purchase volumes and securing orders, rather than finding new deals.

Territory coverage is normally expressed as the percentage of customers in a sales district that has been visited by the sales person during a specific period. For example: If the sales person has 100 customers in the sales district and has visited 85 during the quarter, the territory coverage is 85 % for that quarter.

We see three distinct benefits of measuring territory coverage:

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