June 19, 2012
-- June 19, 2012, NAPERVILLE, Ill. – Fast-moving markets, customer needs that can turn on a dime, and the need to do more with less are among the multiple issues facing sales executives today. When times are tough, it’s tempting to make decisions based on the production metrics of individual salespeople. A new research summary produced by the business thought leadership organization, The Forum: Business Results Through People, suggests sales executives look beyond the numbers, and instead examine qualities such as the relationships built by the entire sales team. In this way every member is an asset, not a cost.
The report, “Why it’s Time to Go Beyond Metrics to Access Employee Lifetime Value in Sales,” is part of a new series of targeted and concise research packages designed for sales executives. The principal author and researcher, Dr. Frank Mulhern of Northwestern University, examines Employee Lifetime Value as a long-term metric of the financial value of an employee, and says that the revenue a sales person generates is the best example of ELTV. The report cites a net benefit of $5 for every $1 invested in sales training, and warns that the cost of employee turnover is highest in the sales field – close to $600,000, according to a 2005 study.
The report also contains several practical tips for sales executives to apply to their business. Dr. Muhern concludes, “In between all the hard metrics we associate with sales, we need to invest in, take care of, and enrich the individuals who make these sales happen. That’s how we support employee engagement and loyalty and enhance Employee Lifetime Value.”
To read the entire research summary, please visit The Forum’s website, www.businessresultsthroughpeople.org. Click on the “Research”
tab, followed by “Leadership Focused Papers.”
About the Forum
The Forum (www.BusinessResultsThroughPeople.org)
, affiliated with Northwestern University, is an organization for thought leadership advocating the most effective way business leaders create and sustain organizational value is through partnership with people. Professionals are welcome to join The Forum for interactive discussion on its LinkedIn group and follow The Forum on Twitter @FORUMforPEOPLE.