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Blog · Territory, capacity and quota planning

Territory or named accounts: measuring a hybrid coverage model without double counting

How a sales operations team measures coverage, revenue and quota in a model where some reps hold geographic territories and others hold named accounts that sit inside those territories: the precedence rule that puts every account under exactly one owner, the carve-out list the territory rep sees, the identity that territory plus named revenue equals the region's ledger, and the two reports each kind of rep needs.

The short answerIn a hybrid model, a named-account rep and a territory rep can both claim the same account unless a precedence rule puts every account under exactly one owner: named first, then territory. The carve-out list, the named accounts inside each territory, is shown to the territory rep so they know what is not theirs, and the identity is that named-account revenue plus territory revenue equals the region's ledger. The named rep's report is per account; the territory rep's is per territory net of carve-outs; and the region's is the sum, checked.

A company adds a named-account team on top of its geographic territories, and within a quarter two reps are calling the same customer and both are counting its revenue. The precedence rule and the carve-out list end that, and the identity proves it every month. This guide sets out the rule, the lists, the two reports, and the check.

The precedence rule

An account on a named list belongs to the named rep. Every other account belongs to the territory containing its location. An account on two named lists is an exception.

Written, dated, and applied by rule from the named lists and the location file. Not by negotiation.

The rows you need

  • Named lists: account, named rep, effective dates.
  • Territory map: location rule, territory rep, effective dates.
  • Account master: account, location.
  • Ledger: account, revenue.
  • Activities: account, rep, date.

Account and rep identifiers only.

The identity

Σ named revenue + Σ territory revenue = region ledger revenue every account has exactly one owner on any date

An account with two owners, or none, fails it and is listed with the rule that should have applied.

The carve-out list

Per territory: the named accounts inside it, their named owner, and their revenue. Shown to the territory rep, so the territory's revenue and coverage are read net of them and the rep does not call them.

A worked region

Owner Kind Accounts Revenue Coverage Quota
R-04 Territory North, net of carve-outs 62 $4.0m 53% $4.2m
R-11 Territory South, net 44 $3.6m 86% $3.9m
N-01 Named: 12 accounts, 7 in North, 5 in South 12 $6.1m 92% $6.4m
Region 118 $13.7m $14.5m

Region revenue equals the ledger. The seven named accounts in the North are on R-04's carve-out list with N-01's name beside them, and R-04's 53 percent is coverage of the sixty-two that are theirs.

Two reports

Rep kind Report
Named Per account: share of wallet, gap, contact recency, pipeline, plan
Territory Per territory: coverage net of carve-outs, untouched list, penetration of the territory's universe, carve-out list

Where it goes wrong

No precedence rule. Both reps claim the account and the region's revenue exceeds the ledger.

Carve-outs invisible to the territory rep. They call the named accounts.

Quota set before carve-outs. The territory rep carries quota for accounts they do not own.

Rule changed undated. Last quarter's attribution moves.

Every month, one owner per account

Mapped once, the named lists, the territory map, the account master and the ledger produce the owner per account, the carve-out lists, both reports and the identity every month. Covirage builds this from the exports as they are. The territory planning solution describes the setup, and the crediting rules guide covers the credit side of the same rule.

Questions people ask

What is the precedence rule?

A written order: an account on a named list belongs to the named rep, whatever its location; every other account belongs to the territory its location falls in. Ties, an account on two named lists, are an exception listed for sales ops. The rule is dated so that a change does not restate the past.

What does the territory rep see?

Their territory, the carve-out list of named accounts inside it with the named owner, and their revenue and coverage net of carve-outs. A territory rep who cannot see the carve-outs calls the named accounts, and the argument follows.

How is quota set?

From potential, per owner, with the carve-outs removed from the territory's potential and added to the named rep's. The identity is that territory quotas plus named quotas equal the region's, and it is the check that a carve-out was not counted in both.