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A new model for measuring salesperson lifetime value

A new model for measuring salesperson lifetime value PurposeThe purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity.Design/methodology/approachThis is a conceptual paper supported by a case study.FindingsThe authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs.Originality/valueThis manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business and Industrial Marketing Emerald Publishing

A new model for measuring salesperson lifetime value

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References (49)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0885-8624
DOI
10.1108/JBIM-09-2016-0205
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity.Design/methodology/approachThis is a conceptual paper supported by a case study.FindingsThe authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs.Originality/valueThis manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use.

Journal

Journal of Business and Industrial MarketingEmerald Publishing

Published: Mar 6, 2017

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