How Often Should You Review Sales Territories?
The Territory Review Question
Most sales teams create territories once and never review them. They set territories at the beginning of the year, assign them to reps, and forget about them. Then they wonder why territories become unbalanced, why performance suffers, and why reps complain.
Territory planning isn't a one-time exercise. It's an ongoing process. Territories need to be reviewed regularly to stay current, balanced, and optimized.
Here's how often you should review sales territories — and what to look for when you do.
How Often to Review Territories
The frequency of territory reviews depends on several factors:
Annual Reviews
When to use: For stable markets with predictable changes.
Frequency: Once per year, typically during annual planning.
What to review:
- Overall territory balance
- Major market changes
- Rep changes and capacity
- Performance trends
Pros: Less disruptive, allows for stability, easier to plan.
Cons: May miss changes, territories can become unbalanced, slower to adapt.
Why it matters: Annual reviews ensure territories stay current with major changes.
Quarterly Reviews
When to use: For dynamic markets or when territories need frequent adjustment.
Frequency: Every quarter, typically during QBR prep.
What to review:
- Territory balance and performance
- Market changes and trends
- Rep capacity and workload
- Account growth and changes
Pros: More responsive, catches changes earlier, keeps territories balanced.
Cons: More work, can be disruptive, requires more planning.
Why it matters: Quarterly reviews keep territories current and balanced.
Monthly Reviews
When to use: For very dynamic markets or when territories are frequently unbalanced.
Frequency: Every month, typically during monthly business reviews.
What to review:
- Territory performance
- Immediate imbalances
- Rep capacity issues
- Account changes
Pros: Very responsive, catches issues quickly, maintains balance.
Cons: Very time-consuming, can be disruptive, requires constant attention.
Why it matters: Monthly reviews ensure territories stay balanced and optimized.
What Triggers a Review
Some situations require immediate territory review:
Major Market Changes
What it is: Significant changes in your market — new competitors, market shifts, economic changes.
Why it matters: Market changes affect territory potential and balance.
When to review: Immediately when major changes occur.
What to do: Assess impact on territories. Adjust as needed.
Account Growth or Decline
What it is: Significant growth or decline in account potential or count.
Why it matters: Account changes affect territory balance.
When to review: When account changes are significant.
What to do: Recalculate territory potential. Rebalance if needed.
Rep Changes
What it is: Reps joining, leaving, or changing roles.
Why it matters: Rep changes require territory reassignment.
When to review: Immediately when reps change.
What to do: Reassign territories. Rebalance as needed.
Performance Imbalances
What it is: Significant performance differences between territories.
Why it matters: Performance imbalances indicate territory imbalances.
When to review: When performance differences are significant.
What to do: Analyze causes. Adjust territories to balance performance.
Rep Complaints
What it is: Reps complaining about territory balance or workload.
Why it matters: Rep complaints indicate problems.
When to review: When complaints are frequent or serious.
What to do: Investigate complaints. Adjust territories as needed.
What to Review
When reviewing territories, review:
Territory Balance
What to check:
- Account potential by territory
- Account count by territory
- Workload by territory
- Rep capacity vs territory requirements
Why it matters: Balance ensures fairness and optimizes performance.
What to do: Calculate balance metrics. Identify imbalances. Adjust as needed.
Territory Performance
What to check:
- Revenue by territory
- Pipeline by territory
- Win rates by territory
- Activity levels by territory
Why it matters: Performance indicates territory effectiveness.
What to do: Analyze performance metrics. Identify trends. Optimize as needed.
Market Changes
What to check:
- Market growth or decline
- Competitive changes
- Industry trends
- Economic factors
Why it matters: Market changes affect territory potential.
What to do: Assess market changes. Adjust territories accordingly.
Rep Capacity
What to check:
- Rep workload vs capacity
- Rep performance and skills
- Rep preferences and strengths
- Rep changes
Why it matters: Rep capacity affects territory assignments.
What to do: Assess rep capacity. Match territories to capacity.
How to Conduct a Review
Here's how to conduct a territory review:
Step 1: Gather Data
What to do:
- Collect territory performance data
- Gather account data and potential
- Review rep capacity and workload
- Analyze market trends
Why it matters: Data informs review decisions.
How to do it: Pull data from CRM, performance reports, and market research.
Step 2: Analyze Balance
What to do:
- Calculate territory balance metrics
- Identify imbalances
- Assess causes of imbalances
Why it matters: Balance analysis identifies problems.
How to do it: Calculate potential, count, and workload. Compare across territories.
Step 3: Analyze Performance
What to do:
- Review territory performance metrics
- Identify performance trends
- Assess causes of performance differences
Why it matters: Performance analysis identifies optimization opportunities.
How to do it: Review revenue, pipeline, win rates, and activity by territory.
Step 4: Identify Changes Needed
What to do:
- Identify territory adjustments needed
- Prioritize changes
- Plan adjustments
Why it matters: Change identification guides optimization.
How to do it: Based on balance and performance analysis, identify needed changes.
Step 5: Make Adjustments
What to do:
- Adjust territories as needed
- Reassign accounts if necessary
- Communicate changes
Why it matters: Adjustments optimize territories.
How to do it: Make changes systematically. Communicate clearly.
Step 6: Document and Monitor
What to do:
- Document changes made
- Update territory plans
- Monitor results
Why it matters: Documentation and monitoring ensure changes work.
How to do it: Document changes. Update plans. Track results.
Best Practices for Reviews
Here are best practices for territory reviews:
Schedule Regular Reviews
What to do: Schedule reviews in advance — quarterly or annually.
Why it matters: Regular reviews prevent territories from becoming unbalanced.
How to do it: Add reviews to your planning calendar. Make them a priority.
Use Data to Inform Decisions
What to do: Use data — performance metrics, account data, market trends — to inform review decisions.
Why it matters: Data-driven reviews create better decisions.
How to do it: Gather data before reviews. Use data to identify issues and solutions.
Involve Reps
What to do: Involve reps in review process. Get their input and feedback.
Why it matters: Rep input improves review quality and buy-in.
How to do it: Survey reps. Get feedback. Consider their input.
Communicate Changes Clearly
What to do: Communicate territory changes clearly. Explain rationale.
Why it matters: Clear communication prevents confusion and resistance.
How to do it: Announce changes. Explain why. Address concerns.
Monitor Results
What to do: Monitor results after changes. Track performance and balance.
Why it matters: Monitoring ensures changes work.
How to do it: Track metrics. Review results. Adjust as needed.
The Bottom Line
Territory review frequency depends on:
- Market dynamics — How quickly your market changes
- Territory stability — How stable your territories are
- Performance issues — Whether territories are performing well
Recommended frequency: Quarterly for most teams, annually for stable markets, monthly for very dynamic markets.
What triggers reviews: Major market changes, account growth/decline, rep changes, performance imbalances, rep complaints.
What to review: Territory balance, performance, market changes, rep capacity.
How to review: Gather data, analyze balance and performance, identify changes, make adjustments, document and monitor.
The sales teams that succeed aren't the ones that create territories once and forget them. They're the ones that review territories regularly — analyzing balance, monitoring performance, and optimizing continuously.
That's how often you should review sales territories — regularly enough to stay current, balanced, and optimized.