Effect of Salespeople's Acquisition-Retention Trade-Off on Performance
Author(s)
Carter, Robert E.
Henderson, Conor M.
Arroniz, Inigo
Palmatier, Robert W.
Griffith University Author(s)
Year published
2014
Metadata
Show full item recordAbstract
This research examines the impact of the acquisition–retention resource allocation at the individual salesperson level – that is, the proportion of their time dedicated to acquisition versus retention activities – on their sales performance. We extend prior research that investigates the acquisition–retention trade-off below (i.e., customer value approach) or above (i.e., firm portfolio approach) the salesperson's perspective by also incorporating many ‘within-firm’ factors that are critical to capturing the contingent nature of the allocation decision. The results suggest that firms can double their sales gains by implementing ...
View more >This research examines the impact of the acquisition–retention resource allocation at the individual salesperson level – that is, the proportion of their time dedicated to acquisition versus retention activities – on their sales performance. We extend prior research that investigates the acquisition–retention trade-off below (i.e., customer value approach) or above (i.e., firm portfolio approach) the salesperson's perspective by also incorporating many ‘within-firm’ factors that are critical to capturing the contingent nature of the allocation decision. The results suggest that firms can double their sales gains by implementing a trade-off strategy that customizes the acquisition allocation at the salesperson level. Using matched triadic data gathered from 227 salespersons, 106 supervisors and the seller's database, the authors find an inverted U-shaped linkage between the proportion of time allocated to acquisition activities and sales performance. Moderation analyses show that salespeople's optimal acquisition allocation depends on their knowledge breadth and job commitment, their supervisor's experience and job commitment and the quantity and quality of the prospects in their relationship portfolio.
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View more >This research examines the impact of the acquisition–retention resource allocation at the individual salesperson level – that is, the proportion of their time dedicated to acquisition versus retention activities – on their sales performance. We extend prior research that investigates the acquisition–retention trade-off below (i.e., customer value approach) or above (i.e., firm portfolio approach) the salesperson's perspective by also incorporating many ‘within-firm’ factors that are critical to capturing the contingent nature of the allocation decision. The results suggest that firms can double their sales gains by implementing a trade-off strategy that customizes the acquisition allocation at the salesperson level. Using matched triadic data gathered from 227 salespersons, 106 supervisors and the seller's database, the authors find an inverted U-shaped linkage between the proportion of time allocated to acquisition activities and sales performance. Moderation analyses show that salespeople's optimal acquisition allocation depends on their knowledge breadth and job commitment, their supervisor's experience and job commitment and the quantity and quality of the prospects in their relationship portfolio.
View less >
Journal Title
Journal of Personal Selling and Sales Management
Volume
34
Issue
2
Subject
Marketing not elsewhere classified
Business and Management
Marketing