Setting up a oil & gas sales territory

January 20th, 2014 by

I am going the create a series of blogs that provides information on specific territories within the Western Canada oil & gas industry and can be managed in SalesForce.com SalesCloud.

Below is the definition of building a sales territory for Wikipedia :

A sales territory is the customer group or geographic district for which an individual salesperson or sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.

“In defining or redefining territories, companies strive to balance workloads, balance sales potential, develop compact territories, and minimize disruptions during the redesigns. These goals can have different effects on different stakeholders. . . . Before designing new territories, a sales force manager should evaluate the workloads of all members of the sales team.

The workload for a territory can be calculated as follows:

Workload (#) = [Current accounts (#) * Average time to service an active account (#)] + [Prospects (#) * Time spent trying to convert a prospect into an active account (#)]

The sales potential in a territory can be determined as follows:

Sales potential ($) = Number of possible accounts (#) x Buying power ($)

“Buying power is a dollar figure based on such factors as average income levels, number of businesses in a territory, average sales of those businesses, and population demographics. Buying power indices are generally specific to individual industries,” but on a whole, definitions of buying power tend to be more an art than a science.

POIM Oil & Gas territory break down in Western Canada

Examples of Sales Terrotories

Oil & Gas Sales Territories Include:

  • Regions Contain
  • Formation names:  Montney, Cardium, Viking, Bakken and Lower Shaunavon
  • Geological age:  Devonion
  • Basin name:  Horn River
  • Play type:  oil sands

Oil & Gas Sales Territories Contain:

  • Companies that operate in multiple regions
  • Companies that operate in few regions
  •  Companies that operate in one region

POIM Sales Territories

  • North BC
  • Southeast BC
  • West BC
  • Rainbow / Zama
  • Peace River / Slave Lake
  • Grande Prairie
  • Fort McMurray
  • Athabasca / Cold Lake
  • Central Alberta
  • East Central Alberta
  • Foothills
  • Southeastern Alberta
  • SK Area I
  • SK Area II
  • SK Area III
  • SK Area IV

 

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