Learn how to defuse sales territory disputes and encourage collaboration among your sales representatives for better team dynamics and productivity.

Defining territories is a sales strategy decision. As one of 9 decisions, being clear on the geographic area or areas of a salesperson's territory is important. Without this decision and definition salespeople will be unclear and argumentative. Obviously there can still be disagreements (for e.g.: if a customer has multiple branches or operate across multiple territories), but strong definition allows for better management when disputes arise.

Last updated on Jul 12, 2024

Two sales representatives are at odds over territory allocation. How can you help them find common ground?

When two sales representatives clash over territory allocation, it can create a tense atmosphere that's detrimental to both the team's morale and the company's bottom line. As a sales manager, you're tasked with the delicate job of resolving such conflicts and fostering a collaborative environment. By understanding the root causes of territorial disputes and applying effective conflict resolution strategies, you can help your sales reps find common ground and work towards a mutually beneficial arrangement.

Key takeaways from this article

Structure the discussion:

A structured mediation session steers reps towards collaboration by focusing on shared goals and company success. This can lead to creative, equitable territory divisions that satisfy both parties and boost morale.
Set joint targets:

Encouraging sales reps to work toward common goals helps shift the focus from competition to teamwork, fostering a cooperative atmosphere and improving overall performance.

This summary is powered by AI and these experts

1 Understand Grievances

Start by listening to each sales representative's concerns without judgment. It's crucial to create an open dialogue where both parties feel their perspectives are valued. This approach helps in uncovering the underlying reasons for the dispute, which often stem from fears of lost income, perceived unfairness, or lack of trust. By acknowledging their feelings and assuring them that their success is important to the company, you lay the groundwork for a solution that addresses everyone's needs.

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Ahmed Gamal

Medical representative at Apex Pharma.
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As a sales manager, mediate the conflict by facilitating a structured discussion. Listen to both representatives' concerns and goals. Use data to analyze territory potential and ensure fair allocation. Propose a trial period with clear metrics to reassess the distribution. Encourage collaboration by setting joint targets and fostering a team-oriented mindset. Emphasize the overall company's success and offer incentives for cooperative achievements.

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MOHIL SHETH

🌍Meet Me at GITEX | Chief Business Growth Consultant | Product Sales Head | Business Strategist | Y-Combinator | B2B | B2C | IIoT | IoT | Logistic/ SupplyChain| NoCode | HealthCare | Fintech | TableFlow🌍
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Resolve disputes by listening to your sales reps without judgment. Use Solution Selling and The Challenger Sale to foster open dialogue. Address fears of income loss, unfairness, and trust issues by acknowledging their concerns and valuing their input. Set the stage for solutions that benefit everyone. #SalesLeadership #TeamSuccess #SolutionSelling #ChallengerSale

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Ross Holmes

Head of Sales UK & APAC
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Its generally the underperformer that will take issue. you need to make sure nothing gets in the way of over achievers so don't take territory off them that they will likely win in. then look at ways to bring underperformance up to speed. its rarely about unfairness of allocation.

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2 Analyze Performance

Next, objectively evaluate the performance data of the territories in question. Look at sales figures, customer satisfaction levels, and market potential. This analysis will provide a factual basis for discussions and help remove personal biases. It's important to consider the strengths and weaknesses of each sales rep and how they align with the characteristics of each territory. This ensures that any reallocation of territories plays to each representative's skills, leading to increased sales and improved customer relations.

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3 Define Territories

Clearly defining territories is essential to prevent future conflicts. Use geographical boundaries, customer demographics, or product lines as clear markers for each territory. It's important to communicate that these definitions are based on strategic business needs and are designed to optimize the sales process. By setting transparent rules for territory allocation, you foster a sense of fairness and structure within your sales team.

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Tony Cross
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Defining territories is a sales strategy decision. As one of 9 decisions, being clear on the geographic area or areas of a salesperson's territory is important. Without this decision and definition salespeople will be unclear and argumentative. Obviously there can still be disagreements (for e.g.: if a customer has multiple branches or operate across multiple territories), but strong definition allows for better management when disputes arise.

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4 Incentivize Collaboration

Consider introducing incentives that promote teamwork between your sales reps. These could include bonuses for collaborative deals or shared targets that encourage mutual support. This strategy shifts the focus from individual competition to collective achievement. When sales reps see the benefits of working together, they're more likely to put aside their differences and find ways to support each other's success.

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5 Mediate a Solution

Facilitate a mediation session where both sales reps can voice their concerns and work towards a compromise. It's important to remain neutral and guide the conversation towards constructive solutions. Encourage them to think creatively about how they can divide the territory in a way that feels equitable. Sometimes, this might involve trading accounts or agreeing on a referral system that benefits both parties.

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6 Implement Changes

Finally, once an agreement is reached, put the new territory allocation into effect promptly. Monitor the situation closely to ensure that the changes are working as intended and make adjustments if necessary. It's also important to provide ongoing support to both sales reps during the transition period. This might include additional training or resources to help them succeed in their newly defined territories.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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★PDBA Researcher ★ Counsellor ★ CEO ★ Making Values ★ Creating wealth through leadership, learning, innovation, people, change & entrepreneurship. ★ #ahmedalaali11
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To help the sales representatives resolve their conflict over territory allocation, begin by organizing an open discussion where each can share their concerns and perspectives. Listen carefully to both sides and highlight their shared objectives, like increasing sales and customer satisfaction. Use data and performance metrics to evaluate each territory objectively. Suggest a fair allocation strategy, such as dividing territories based on market potential or periodically rotating assignments. Stress the importance of teamwork and the common goal of the company's success, and be ready to mediate and adjust the plan as needed to reach a balanced, mutually beneficial solution. #ahmedalaali11

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Two sales representatives are at odds over territory allocation. How can you help them find common ground?

1

2

3

4

5

6

7

1 Understand Grievances

2 Analyze Performance

3 Define Territories

4 Incentivize Collaboration

5 Mediate a Solution

6 Implement Changes

7 Here’s what else to consider

Sales Management

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Two sales representatives are at odds over territory allocation. How can you help them find common ground?

1

2

3

4

5

6

7

1 Understand Grievances

2 Analyze Performance

3 Define Territories

4 Incentivize Collaboration

5 Mediate a Solution

6 Implement Changes

7 Here’s what else to consider

Sales Management

Rate this article

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