The Concept of Salesperson Replacement Value

28 April 2009

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In most industries, sales force turnover is high and very costly to an organization. This paper argues that sales force turnover reflects the quality of sales management performance and that a systematic analysis of sales force turnover can provide clear guidance to increase sales management’s practices and effectiveness. For that purpose, a simple and flexible five-step procedure relying on the concept of a salesperson’s “replacement value” is proposed. It requires only some systematic data collection from leavers at the exit interview time. A case study illustrates the procedure.

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