Do consulting‐oriented sales management programs impact salesforce performance and profit?

Abstract

PurposeThis study seeks to investigate causal relationships between sales management programs designed to build customer relationships by solving customer problems and selling firm performance.Design/methodology/approachHypotheses were developed and supported based on theories developed from the market orientation and sales management literature. Using survey results from sales managers and reported profitability data, those hypotheses were tested using multiple regression.FindingsResults indicate that consulting‐oriented post‐sales training and consulting‐oriented evaluation are significant influences on salesforce efficiency. Consulting‐oriented evaluation is a significant influence on customer retention. The strongest influences on profit growth are initial sales training and post‐sales training learning, but a composite variable of all elements of the consulting‐oriented sales management program is a significant influence on profit growth.Research limitations/implicationsThe sampling frame of this study was limited to medium to large industrial manufacturing firms; therefore any conclusions drawn from this study cannot be generalized beyond these types of firms. Future consulting‐oriented sales management research should expand the types of firms studied. Future research should also measure the relationships between consulting‐oriented sales management programs, firm market and learning orientation, adaptive selling, and salesperson customer orientation.Practical implicationsIn industries where relationship building and partnering are considered mutually beneficial and important by buyers and sellers there should be greater emphasis on: listening skills, diagnostic skills, and problem solving skills in sales training; sharing effective strategies to build customer relationships and sharing of effective customer problem‐solving strategies in post‐sales training learning; measuring customer cost savings and obtaining customer satisfaction feedback in evaluation systems; and compensating salespeople for customer retention, positive customer feedback, and increased sales from current customers.Originality/valueThis study fills a gap in the literature for firm level research on the consequences of sales management programs, particularly programs that encourage sales consulting. This study makes a contribution to the literature by determining whether industry conditions encourage those programs or moderate their relationship to performance.