The Concept of Salesperson Replacement Value: A Sales Force Turnover Management Tool

Abstract

In most industries, sales force turnover is high and very costly to an organization. This paper argues that sales force turnover refects the quality of sales management performance and that a systematic analysis of sales force turnover can provide clear guidance to increased sales management’s practices and effectiveness. For that purpose, a simple and fexible fve-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.