In 1963, the U.S. Postal Service began using the current ZIP code system to designate delivery routes used by mail carriers and locations serviced by the USPS. The term “ZIP,” which is an acronym for Zone Improvement Plan, delivers on its name by allowing mail to travel more quickly and efficiently. Today, territory maps are often based on a wide range of demographics with one of the most common being ZIP codes.
What Is ZIP Code Territory Mapping?
Territory mapping involves the assigning of individual territories based on geographic boundaries, such as states, counties, cities or ZIP codes. The main goal of territory mapping is to create a sales map that is fair, balanced and fully covered. With ZIP code territory mapping, businesses of all sizes can enjoy a wide range of benefits, such as identifying new opportunities for store or service center locations. Demographics can aid businesses in selecting the right location and can improve location-specific marketing.
How Does ZIP Code Territory Mapping Work?
Adding territories to a sales map allows businesses to more easily spot important trends that impact the business and open up sales opportunities. Gaining these insights enables businesses to make strategic decisions regarding which areas to do business and which areas to avoid. Add ZIP codes to easily see all of the locations within a particular territory. Customers can then be segmented and sales territories optimized to achieve accelerated growth.
What are the Benefits of ZIP Code Territory Mapping?
Creating a sales territory map organized by ZIP codes can be highly advantageous for businesses. ZIP codes offer a simple way for sales managers to designate specific areas on a map that require focus. Sales reps are then assigned a particular ZIP code which helps create a more balanced distribution and can improve employee satisfaction.
ZIP code territory mapping can also deliver other key benefits, such as the following:
Understand Customer Demands in Different Regions
Customer demands can greatly vary based on region. Businesses must have a firm understanding of who they want to target and where these customers are located to leverage territory maps. By organizing a sales territory map based on ZIP codes, it is easier to see which areas have a greater customer demand and which require less focus. ZIP code territory mapping can also help businesses research the ideal customer profile, resulting in more sales and higher profits.
Local ZIP Codes with Your Target Demographic
ZIP code territory mapping can also help companies determine which locations are most likely to draw in a lot of business. A ZIP code territory map will show areas in which there is a large number of customers that meet the target demographic. Businesses may then make a strategic decision to open a store or service center in this area. ZIP code mapping software can also help companies choose neighborhoods that have ample access to public transportation to make it easier for customers to get to these stores.
Discover Potentially Underserved Markets
There are underserved markets in nearly every industry but they are not always obvious. ZIP code territory mapping can help businesses discover potentially underserved markets that they can take advantage of to secure more customers and increase their profit margin. Having this information also keeps your business ahead of the competition for those markets still underserved.
Identify Growth Trends Within Your Region
Collecting and uploading data to sales territory mapping software allows businesses to be better equipped to identify growth trends in their region. These trends can then be analyzed to find new ways to leverage opportunities and expand the business. It may also illuminate areas of weakness providing the opportunity to correct.
Better Optimize Sales Calls and Routes
Sales route planning is an important component of a sales strategy. Efficient routes help sales reps better identify, understand and navigate opportunities. They can also help increase productivity by allowing businesses to serve a larger number of clients with fewer representatives. ZIP code territory mapping can also optimize sales calls, leading to saved time and money.
Speak with Our Sales Territory Mapping Experts
There are many ways to use ZIP codes in sales territory mapping — they can be useful for highlighting areas of the country that represent various categories, such as the most and least populated ZIP codes, income levels and crime levels by ZIP code. The use of cutting-edge sales territory mapping software can streamline this process by allowing businesses to simply upload data and create visual maps.
To learn more about the benefits of ZIP code territory mapping or to speak with a sales territory mapping expert, contact Geographic Enterprises today.