The Concept of Salesperson Replacement Value

28 April 2009


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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