How Many Accounts Should a Salesperson or Territory Manager Handle?
Sales managers, and sales representatives, Territory Managers, Account Managers, Account Executives for manufacturers and distributors often want to know how many accounts one salesperson can handle effectively. I usually answer a question with a question or more to gain better clarity of a situation.
So how many makes sense: 50, 100, 200, more, or less? How much business is too much business? Is the answer quantitative or qualitative?
I don’t know is as straight an answer as you’ll get from me.
Some people would argue that there is no such thing as too much business. As appealing as too much business sounds, it too presents its own set of challenges when excessive demand creates product shortages or service lapses. Most customers get frustrated either situation.
If you think too much business is really attractive, sit in a doctor's office who has overscheduled patient load or visit the airport and watch travelers who have been bumped from a flight that was oversold.
The fundamental question you must ask is: What level of business can your company handle without it having a negative impact on customers, especially existing ones if the business being added is incremental? Can your company maintain service levels at the higher numbers? Will the additional business overburden resources?
Grow your account base and the company’s book of business at a pace that allows you to leverage your brand and the good reputation you build in the market. Out-pacing your ability to perform and deliver as promised and/or your infrastructure is a sure-fire way to reducing customer service and satisfaction.
Sell and service customers that are your most loyal and upgrade existing customers to this status before taking on new accounts. Occasionally purge a few non-loyal customers or communicate to them that they will not receive the same level of service unless they increase loyalty. Now harm or foul in being upfront.
So, how many accounts can a salesperson handle? How many can the salesperson serve fully as a value-added resource? How deep do you want to penetrate the account? How broadly across your product lines do you want to sell into your accounts? Sheer numbers can be enticing. Along with your quantitative metrics, include qualitative standards of excellence. What level of service have you promised your customers? What level of service can you realistically deliver?
In the end you may find that you don’t add accounts to reps, but rather add reps to cover your accounts and those you want to go after.
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