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Dynamics 365 Community / Forums / Customer experience | Sales, Customer Insights,... / Rules based Territory ...
Customer experience | Sales, Customer Insights,...
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Rules based Territory Management vs manual account assignments.....which do companies more often chose? (MS Dynamics)

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Posted on by Darrin Farnsworth 9

Hello forum,

Does anyone have a sense for how widely used rules based Territory Management is in MS Dynamics vs manual account assignments?  I understand Territory Mgt is available by default, but I'm interested to know whether a high percentage of companies A) have the need for it and B) find Territory Mgt to be a capable feature and use it. 

Also interested to know whether Territory Mgt has limitations that prevent a substantial number of companies from using it and what those limitations/scenarios are.

Thanks in advance for any insight/comments received.

Darrin

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  • AppJetty Profile Picture
    AppJetty 1,019 on at
    RE: Rules based Territory Management vs manual account assignments.....which do companies more often chose? (MS Dynamics)

    Hey,

    There’s no exact count to back the need for territory management. But as far as a sales team is concerned, territory management is an effective solution. It makes it easy to assign territories. If you go for manual assignments, you may end up assigning the same territory to two or more reps. That won’t be the case with territory management. 

    However, the demand for territory management depends on your business requirements. If you have limited territories to target that you can count, then you may not have a sheer need for it. But again, it depends on the extension you use. Many mapping tools provide you more than territory management. They equip you with heat maps, live tracking, route optimization, and more. 

    As for limitations, it again depends on your use and demand. Mappyfield provides all functionality. 

  • Inogic Profile Picture
    Inogic 651 on at
    Rules based Territory Management vs manual account assignments.....which do companies more often chose? (MS Dynamics)
    Hey Darrin,

    Companies often choose between manual account assignments and rules-based Territory Management based on their specific needs. Manual assignments can be straightforward but may lead to inefficiencies, such as overlapping territories or uneven distribution of accounts. These may lead to untapped leads or overburdened sales agents.
    On the other hand, rules-based Territory Management automates the assignment process, ensuring a balanced and organized allocation of accounts. ​ For organizations seeking to enhance their Territory Management capabilities within Dynamics 365, special add-on applications offer advanced features. They enable users to create and assign territories using various criteria, such as postal codes, cities, or custom shapes. Allow for the visualization of these territories and their records on maps based on criteria, facilitating better planning and decision-making. By leveraging such comprehensive tools as Maplytics, businesses can optimize their sales strategies and improve overall efficiency. ​
    Do try out!
     
    Thanks,
    Sarika
  • Suggested answer
    Daivat Vartak (v-9davar) Profile Picture
    Daivat Vartak (v-9d... 7,835 Super User 2025 Season 2 on at
    Rules based Territory Management vs manual account assignments.....which do companies more often chose? (MS Dynamics)
    Hello Darrin,
     

    That's a great question, and it touches upon a fundamental aspect of sales operations within Dynamics 365. While precise usage statistics are difficult to come by publicly, I can provide a strong sense based on my experience and observations:

    A) Need for Territory Management:

    • High Need: I would argue that a very high percentage of companies with a sales team beyond a few individuals have a need for some form of structured territory management. This need arises from several key factors:

      • Optimizing Sales Coverage: Ensuring all potential customers are assigned and followed up with effectively.

      • Preventing Overlap: Avoiding multiple salespeople targeting the same accounts or leads, leading to inefficiency and customer frustration.

      • Specialization: Assigning accounts based on industry, size, product focus, or other relevant criteria to leverage salesperson expertise.

      • Fair Distribution of Leads and Opportunities: Ensuring a balanced workload and opportunity distribution among the sales team.

      • Reporting and Analytics: Enabling territory-based reporting to analyze performance, identify growth areas, and make informed decisions.

      • Scalability: As a sales team grows, manual assignment becomes increasingly complex and unsustainable. 

        •  

    B) Capability and Usage of Dynamics 365 Territory Management:

    • Capable Feature: Dynamics 365's out-of-the-box (OTB) Territory Management feature is moderately capable and can address the needs of many organizations, especially those with relatively straightforward territory structures based on geographic regions, postal codes, or basic account attributes.

    • Significant Usage, but Not Universal: While many companies do utilize Dynamics 365 Territory Management, its adoption isn't universal. I would estimate that a significant portion (perhaps in the range of 40-60% of companies with a clear need) actively uses it. However, a substantial number still rely on more manual methods or have opted for more sophisticated third-party solutions.

      •  

    Limitations of Dynamics 365 Territory Management that Prevent Wider Adoption:

    Here are some key limitations and scenarios that often lead companies to avoid or outgrow the OTB Territory Management:

    • Complexity of Rules: While you can define rules based on multiple criteria (e.g., Account City AND Account Revenue), the rule engine can become cumbersome and difficult to manage for highly complex or overlapping territory structures. Implementing intricate hierarchies or multi-dimensional territory assignments can be challenging.

    • Lack of Visual Territory Definition: The OTB feature lacks a visual, map-based interface for defining territories. Defining territories solely based on data attributes can be less intuitive, especially for geographically driven territories. Users often desire the ability to draw boundaries on a map.

    • Limited Overlap Management: Handling overlapping territories (where multiple salespeople might have access to the same account under different conditions) is not well-supported. The system typically assigns an account to a single territory based on the rule evaluation order.

    • Manual Reassignment Challenges: While bulk reassignment tools exist, managing ongoing territory adjustments and reassignments due to salesperson changes or territory restructuring can still involve significant manual effort.

    • Performance Considerations (Large Datasets): For organizations with very large volumes of accounts and complex territory rules, the rule evaluation process can sometimes impact performance.

    • Limited Flexibility in Assignment Logic: The OTB rules are primarily attribute-based. More sophisticated assignment logic based on factors like salesperson capacity, relationship history, or lead source often requires custom development or third-party solutions.

    • No Native Territory Hierarchy Management: While you can create multiple territories, there isn't a built-in way to define and manage a clear territory hierarchy with roll-up reporting and cascading rules.

    • Integration with Advanced Scheduling/Routing: For field service or more complex sales routing scenarios, the OTB Territory Management often lacks the necessary integration with scheduling engines.

      •  

    Scenarios Where OTB Territory Management Often Falls Short:

    • Complex Hierarchical Territories: Companies with regional, sub-regional, and specialized territories with intricate overlap rules.

    • Visual, Map-Driven Territory Definition: Organizations heavily reliant on geographic boundaries and wanting a visual way to manage them.

    • Dynamic Territory Adjustments Based on Real-time Data: Companies needing territories to adjust automatically based on factors like salesperson availability or lead distribution needs.

    • Advanced Account Segmentation and Assignment: Organizations with highly specific criteria for assigning accounts based on a combination of factors not easily handled by the OTB rules.

    • Collaborative Selling Models: Scenarios where multiple salespeople need access and ownership within the same territory or account under different roles.

      •  

    Conclusion:

    Dynamics 365's out-of-the-box Territory Management is a useful and widely adopted feature for many organizations with relatively straightforward territory needs. However, its limitations in handling complex rules, visual definition, overlap management, and advanced assignment logic often lead companies with more intricate requirements to either heavily customize the system or invest in third-party territory management solutions available on the Microsoft AppSource.

    The decision of whether to use the OTB functionality often comes down to a trade-off between ease of initial setup and the long-term scalability and flexibility required to meet the organization's evolving sales strategy.

     
    If my answer was helpful, please click Like, and if it solved your problem, please mark it as verified to help other community members find more. If you have further questions, please feel free to contact me.
     
    My response was crafted with AI assistance and tailored to provide detailed and actionable guidance for your Microsoft Dynamics 365 query.
     
    Regards,
    Daivat Vartak
  • Suggested answer
    Anne Stanton, MCSE, MBA, CRM rMVP #7 Profile Picture
    Anne Stanton, MCSE,... 65 on at
    Rules based Territory Management vs manual account assignments.....which do companies more often chose? (MS Dynamics)
    There is huge value in automatic assignment when the volume of leads is fairly high. 
     
    On most Enterprise Sales projects automatic assignment is part of the delivery. This might be using configuration (rules), but could also be something like a Power Automate (flow) depending on the complexity of needs.
     
    Cheers Anne

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