Even the best sales forces can’t keep every good salesperson. Loss of salespeople to competitors occurs frequently in high-growth industries in which the demand for experienced salespeople exceeds the supply, such as in fast-evolving technology markets. Poaching of salespeople also occurs when sales are driven largely by relationships. For example, wealth management companies frequently recruit advisors who have built a strong book of business at competitive firms.
How to Reduce the Costs of Salesperson Turnover
What to do if you lose one of your best reps.
November 17, 2017
Summary.
Even the best companies lose sales reps to competitors. To minimize the negative consequences on customers and the company, firms should use specific techniques to identify the withdrawal period (when a salesperson may be distracted while looking for another job), the vacancy period (when the job is empty as the company attempts to hire a replacement), and the hiring/orientation period (when a new rep is getting up to speed.) Companies can also take defensive steps to minimize one saleperson’s control of a customer, decreasing the odds the client will consider his options when his trusted rep departs.
New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.
Learn More & See All Courses
New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.