![]() ![]() One set of metrics dealt with how well each salesperson was doing those numbers measured past performance (on the basis of revenue generated), customer satisfaction, and how often monthly quotas were met. The researchers studied data on 6,727 salespeople working in 1,058 stores, dividing it into two batches. Knowing who is most likely to drive profits is useful, of course, but the new research could add greatly to that value: By learning who is at high risk of leaving and why, sales leaders can address problems before star performers give notice. This work builds on previous research by some of the same academics, who developed a method of estimating an individual salesperson’s future profitability (see “Who’s Your Most Valuable Salesperson?” HBR, April 2015). #AVERAGE TURNOVER RATE SOFTWARE#The researchers examined more than two years’ worth of data from a Fortune 500 telecommunications company that sells consumer electronics and software services, and created a quantitative model-the first of its kind-to predict which salespeople were likely to quit. Kumar, of Georgia State University, can help them do just that. ![]() If managers could identify good salespeople who are at risk of quitting and take steps to retain them, their companies could realize substantial savings.Ī new study by four marketing professors, led by V. Turnover also hurts sales: Positions may sit empty while companies recruit replacements, and the new employees must learn the ropes and rebuild client relationships. firms spend $15 billion a year training salespeople and another $800 billion on incentives, and attrition reduces the return on those investments. While some attrition is desirable, such as when poor performers quit or are terminated, much of it isn’t-and every time a solid performer leaves, his or her company faces a number of direct and indirect costs. In many industries, the average tenure is less than two years. salespeople run as high as 27%-twice the rate in the overall labor force. Companies worry about employee attrition in every department, but it’s especially costly in one function: sales. ![]()
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