Sales-force decision models: Insights from 25 years of implementation

Sales-force decision models: Insights from 25 years of implementation

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Article ID: iaor20021618
Country: United States
Volume: 31
Issue: 3
Publication Date: May 2001
Journal: Interfaces
Authors: ,
Keywords: marketing, decision: applications
Abstract:

Over 25 years, we have developed many sales-force and modeling insights through over 2,000 projects with several hundred selling organizations in over 50 countries. Content insights are useful in making sales-force decisions. Examples are that profitability is flat for a wide range of sales-force sizes; phased sales-force growth is rarely optimal; focused strategies dominate scattered strategies; most sales territories (55 percent) are too large or too small; and no compensation plan satisfies everyone. Implementation insights concern model building, use, and implementation, for example, a model's economic value can come from such sources as reduced uncertainty, accuracy, increased speed, objectivity, and stakeholder involvement; theory and practice have different and complementary perspectives; experience and wisdom are sometimes better than models; and models provide insights, while people make decisions.

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