Over-built, Under-built & Off-built Territories

When creating territories, you want to get the trade areas just right.

That’s how you maximize the profits from all your locations. We call this a well-built territory.

However, building your territory well isn’t easy. That’s why Fract has created it’s Cause & Effect features to ID the ways territories are over-built, under-built, and off-built, and how much those mistakes are costing.

But don’t worry, our Fract AI doesn’t just tell you what you’re doing wrong. We wouldn’t do that to you. The AI also gives you suggestions for how to make sure your territories are well built.


When a real trade area doesn’t fit a territory exactly, there are 3 different cases that the territory can fall into:

  • over-built
  • under-built
  • off-built

Over-built

This is when territories are too big for their trade area. This can be due to a variety of factors, typically people just make them too big to be "safe" (but that's a mistake and far from safe). It can also be due to; nearby competitors, low target customer density or wrong customer entirely, the location is too small for a brick and mortar or even the parking is poor.

Under-built

The real trade area is bigger than the territory. In some regards, this seems like a win for the individual location because they capture a larger market, but the whole organization needs to respone quickly to understand why before a competitor sees this and squeezes out this "successful" territory blocking the parent organization from this market altogether.

Off-built

This is when your territory has varying degrees of overlap with the real trade area. This is the most common type of territory. The overlap makes the territory both under-built and over-built at the same time. This territory can gain and lose money or market share, making off-built territories organizationally inefficient, highly complex, and diffucult to understand and fix.

Figuring out how to make sure your territories are well-built so they match real trade areas is difficult...until now.

Cause & Effect

The AI engine goes on to tell you the effects in terms of dollars and number of target customers that you lose because of the differences in your trade area vs your territory. FractAI also tells you for every insight:

  • Confidence
  • Score
  • Strategy
You can access the Cause & Effect tools from the Fract dashboard.

Fract has just released Cause & Effect analytics that help you map even smarter territories that match your real trade areas. To find the cause of misbuilt territories, FractAI analyses sales and client data from stores to see if territories are under-built, over-built, or off-built.

All insights are visualized on the map: