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A new model for measuring salesperson lifetime value

Pablo Farías (Universidad de Chile, Santiago de Chile, Chile)
Eduardo Torres (Universidad de Chile, Santiago de Chile, Chile)
Roberto Mora Cortez (J. Mack College of Business, Georgia State University, Atlanta, Georgia, USA)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 6 March 2017

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561

Abstract

Purpose

The 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/approach

This is a conceptual paper supported by a case study.

Findings

The 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/value

This 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.

Keywords

Citation

Farías, P., Torres, E. and Mora Cortez, R. (2017), "A new model for measuring salesperson lifetime value", Journal of Business & Industrial Marketing, Vol. 32 No. 2, pp. 274-281. https://doi.org/10.1108/JBIM-09-2016-0205

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited