Effects of top-performer rewards on fellow salespeople: a double-edged sword

Rewarding top performers is of strategic importance to the sales organization. Top-performing salespeople not only contribute significantly to the success of their firm but may also motivate the skill development of peer salespeople. However, both academic research and anecdotal evidence suggest that top performer rewards can boomerang by damaging peer salespeople's morale and productivity, although the underlying mechanisms and boundary conditions remain unclear. Using a sample of salespeople and their managers from financial investment firms in Taiwan, the authors uncover both positive and negative effects of top-performer rewards. Specifically, it is found that when behavior control is employed, top-performer rewards are positively associated with perceived top-performer customer-relationship-building competence only when overall organizational justice is high. By contrast, when organizational justice is low and behavior control is employed, top-performer rewards give rise to perceived favoritism. Moreover, in large sales units, top-performer rewards are much less likely associated with perceived favoritism when organizational justice is high. It is through the perceived top-performer customer-relationship-building competence and perceived favoritism that top-performer rewards have a double-edged sword effect on fellow salespeople's selling skills, opportunism, and sales performance. Theoretical and managerial implications are discussed.     

From selling to managing strategic customers - a competency analysis

An increasing number of companies select strategic customers, who are then treated differently from standard customers. Thus, the customer-facing function has been divided into two separate functions: traditional selling and strategic account management. This article seeks to provide a comprehensive overview that compares the competencies of salespeople with the competencies of strategic account managers. The article's objective is to highlight a competency path that can lead salespeople to transition successfully into strategic account managers. Leveraging the two distinct competency classifications, we identify the key skills that traditional salespeople must be trained in or “unlearn” to successfully transition. From a theoretical perspective, this article bridges the gap between the literature on sales and the literature on strategic account management and pinpoints the major differences between those two customer-facing dimensions. From a managerial perspective, the article helps practitioners draw a competency grid to assess both salespeople's ability to succeed in their role transition and the training required to support this transition.     

Connect within to connect outside: effect of salespeople's political skill on relationship performance

Scholars have recently explored the effects of salespeople's intraorganizational relationships on salespeople's job-related outcomes. Grounded in social influence theory, we explore the effects of salespeople's intraorganizational skills on salesperson relationship performance. We empirically tested the proposed relationships using the data from a non-Western sales force working with an organization in an emerging economy. The results indicate that salespeople's political skill positively contributes to salespeople's identification with the organization and to creative performance, while strikingly, we also find that salesperson task adaptivity weakens these effects. Moreover, salespeople's identification and creative performance are positively related to customer satisfaction. These findings demonstrate that salespeople's intraorganizational relationships play a key role in enhancing customer satisfaction. In light of these results, we explore implications for marketers and academics and conclude by suggesting directions for further research.     

Sales-as-practice: an introduction and methodological outline

There are strong indications that sales practices are currently being redefined from the ground up and that many of the inherited conceptual models of selling will not hold into a future that is defined by new selling techniques and technologies. This paper introduces a research perspective that can provide an important source of insight into how sales work and salespeople are currently being reconstituted: the sales-as-practice approach. In common with ‘practice turns’ evident in other business literature, such as the recent marketing-as-practice or the by now well-established strategy-as-practice approach, sales-as-practice requires of researchers to develop a sensitivity towards salespeople's ways of doing and being in social and material contexts. While acknowledging potential limitations, we identify some significant benefits of adopting this approach for our conceptual understanding of the sales domain, particularly in understanding persistence and transformation in sales practices, in paying attention to the role of material objects in configuring these practices and in appreciating the role of such practices in producing salespeople's ways of being. Moreover, we argue that becoming more closely acquainted with sales professionals' lifeworlds can aid in bridging the perceived divide between academic and practitioner knowledge in our domain.     

The Role of Trust in Salesperson—Sales Manager Relationships

Leader-Member Exchange Theory (LMX) offers a way to better understand nuances of the salesperson-sales manager relationship. The study reported here employs leader-member exchange theory to evaluate how sales employees develop trust with their managers. Findings show that salespeople's perceptions of procedural justice positively influence salespeople's commitment to the organization, and thereby their satisfaction with the job. Suggestions are provided concerning how sales organizations can train managers to manage consistently and thereby build trust and commitment in salespeople.     

Salesperson–brand relationship: main dimensions and impact within the context of private brand retailing

Private branding is considered one of the most effective and efficient influencers of retailers’ return on investment in their fiercely competitive industry. However, no study to date has examined these brands’ impact on salespeople's motivation and commitment to their own employer. This study, based upon extensive qualitative and quantitative research, shows that salespeople's relationships with their private brands can be influential in increasing their selling motivation and organizational commitment. Toward this end, our study first identifies the three important dimensions of salesperson–brand relationship (affect, trust, perceived customer recognition due to the brand) and develops their measures. Second, the findings show that salesperson–brand relationships, which exist between the retail frontline employees and retailers’ private brand, strongly influence sales motivation and firm commitment with a moderating influence of role clarity regarding management's expectations from its salespeople.     

A Repertoire of Marketers' Trust-Building Strategies Within The Sales-Marketing Interface

Examining how sales and marketing personnel interrelate is analogous to studying intergroup cooperation wherein two groups – sales and marketing – are required to work cooperatively to achieve specific firm-level objectives. While extensive literature in psychology and management has implied that trust is an important precursor of enhanced intergroup cooperation, no extant scholarly work has explicated the specific activities sales and marketing personnel may engage in to build trust within the sales-marketing interface (SMI). We use qualitative methodology and in-depth interview data collected from 29 sales and marketing executives in Saudi Arabia to investigate the specific activities that may help marketers build trust with their sales counterparts and signal to them that they are a dependable partner. Study findings suggest that when marketers (a) act as salespeople's ambassadors to senior leaders; (b) stay invested in salespeople's success; and (c) act as a semipermeable barrier between salespeople and the leadership, they are able to engender trust with salespeople. In addition to providing a preliminary thesis regarding how marketers may build trust within SMI, study findings highlight how the specific trust-building activities may contribute to strategic phenomena such as marketing-strategy making, sales buy-in of marketing strategies, and organizational learning.     

A qualitative study of leader behaviors perceived to enable salesperson performance

Abstract

This study builds on and extends previous sales leadership research by exploring sales professionals’ perceptions of effective leadership behaviors. Semistructured interviews with both sales leaders and salespeople working in a global enterprise software company were examined through a qualitative analysis. Results indicated that participants believed sales leadership played an important role in influencing sales performance. When asked to describe specific sales leader behaviors that best enable salesperson performance, sales professionals – both sales leaders and salespeople – overwhelmingly referenced coaching, followed by collaborating, championing, and customer engaging. We define and describe these four key sales leader behaviors and identify four potential mediating variables (trust, confidence, optimism, and resilience), from which emerges a conceptual framework of sales leader behaviors perceived to enable salesperson performance. We examine these four key sales leader behaviors and mediators in the broader context of leadership theory, particularly transformational, servant, authentic, and adaptive leadership theories. The key contribution of this study is the identification of a set of leader behaviors that are likely to be especially effective in modern sales organizations given that they originated from the perceptions of sales professionals themselves.     

It is all in good humor? Examining the impact of salesperson evaluations of leader humor on salesperson job satisfaction and job stress

Abstract

Salesperson job stress and job satisfaction have been identified as critical factors affecting job performance. Academic research suggests that sales managers can influence salesperson job stress and job satisfaction. Interestingly, a review of the sales literature finds very little research on the impact of sales leader humor usage on the stress and satisfaction of salespeople. Consequently, we explore how salespeople’s evaluation of their manager’s use of humor influences their individual levels of job stress and satisfaction. We investigate both the positive and negative roles of humor by analyzing the impact of salesperson evaluations of their managers’ use of affiliative and aggressive humor on their job stress and job satisfaction. Furthermore, we examine the mechanism by which these evaluations affect salesperson stress and satisfaction by identifying two critical mediating variables – social loneliness and willingness to cooperate. Using a sample of 299 professional salespeople, we empirically test this process model to find that affiliative humor usage by sales managers, as evaluated by salespeople, reduces social loneliness and stress for salespeople while also increasing followers’ acceptance of cooperation. Evaluations of aggressive humor, on the other hand, increase stress levels among salespeople. Both social loneliness and acceptance of cooperation, in turn, significantly affect job satisfaction.     

Selling behaviours and sales performance: the moderating and mediating effects of interpersonal mentalizing

A random sample of independent insurance agents was surveyed to explore the relationships among learned behaviours, such as, adaptive selling and customer orientation and personal dispositions, such as, interpersonal mentalizing in predicting sales performance. The primary focus of this research was to reexamine salespeople's theory of mind in a broader theoretical base of human abilities. The results confirmed that the dimensions of interpersonal mentalizing, such as, taking a bird's-eye view, shaping the interaction by creating a positive ambience, detecting nonverbal cues and rapport building have different roles for the effectiveness of selling behaviours. While taking a bird's-eye view was a moderator, creating a positive ambience was a mediator of the relationship between selling behaviours and performance. Furthermore, salespeople's ability to build rapport improved sales performance only when they were able to detect nonverbal cues from customers. Taken together, these findings shed light on the complementary role of autonomous abilities of salespeople in improving the productivity of their learned selling behaviours. Several managerial implications were derived from the findings.     

Which influence tactics lead to sales performance? It is a matter of style

The application of influence is a key behaviour set at the heart of the sales role. But we know little about how or whether influence tactics affect salespeople's actual job performance. We extend existing research on salespeople's use of influence by: (1) showing that influence tactics can be used to predict objective sales performance (and delineating which tactics are most predictive); (2) demonstrating that the effect of tactics on performance varies across salespeople, and these patterns of influence effectiveness allow us to identify different influence ‘styles’ and (3) revealing that the influence styles our data uncover are not consistent with existing theoretical classifications of influence tactics. The article concludes with a discussion of theoretical and managerial implications, and directions for future work.     

A Multi-Cultural Study of Salespeople's Behavior In Individual Pay-For-Performance Compensation Systems: When Managers Are More Equal And Less Fair Than Others

In this research, we examine salespeople's behavior in individual pay-for-performance compensation systems and show how perceived management fairness seems to energize sales employees in some environments but not in others. We use a large multicountry database of individual-level remuneration for more than 2,500 salespeople across four B2B industry sectors to demonstrate cultural adaptations of the effect of perceived management fairness. The results indicate that top management should be concerned with employees' perceptions of fairness in addition to the more typical concerns of control and motivation widely acknowledged in the microeconomics-based sales-force compensation literature. In particular, we show that perceptions of management fairness are key to salespeople's proportion of total pay generated by pay-for-performance formulas.     

Effect of salespeople's acquisition–retention trade-off on performance

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.     

Bouncing Back: How Salesperson Optimism and Self-Efficacy Influence Attributions and Behaviors Following Failure

Previous research reports a relationship between attributions and specific behaviors following a failed sales call. This study investigates the influence of individual differences on both the attribution process and the relationship between attribution and the behavioral intentions of sales representatives following a failure using a sample of financial services salespeople. This research reveals the important roles that optimism and self-efficacy play in shaping salespeople’s attributions for failed sales calls and in their behavioral responses to attributions for failure. Implications for managers and future research are discussed.     

An assessment of needed sales management skills

The skills required of sales managers are vitally important to the success of the firm's selling effort; however, there has not been a recent review that identifies these needed skills. Based on a survey of sales executives from 145 companies, this research develops a taxonomy of key sales management skills. The perceived importance of these skills is reported based on the level of management, gender and the performance level of the firm. In addition to identifying the relative importance of the various sales management skills, they were found to group into three conceptual dimensions relating to interpersonal, technical and strategic skills. The results also indicate that significant differences in the perceived level of skill importance exist based on level of management, years managing salespeople, gender and on three dimensions of the respondent's firm performance.     

The Effects of Salesperson Need for Achievement and Sales Manager Leader Reward Behavior

A sample of 312 salespeople from diverse industries was used to develop a model that examined the influence of salesperson need for achievement and sales manager positive leader reward behavior on several key organizational outcomes. The organizational outcome variables examined were goal acceptance, sales performance, and organizational commitment. The results suggest that a salesperson’s need for achievement may lead to higher performance, but not necessarily commitment to the organization. However, positive leader reward behavior may strengthen a salesperson’s organizational commitment. The findings, along with suggestions for sales managers, are discussed.     

The Use of Social Bases of Power in Retail Sales

Abstract

Social power theory has been used to explain how a sales manager may influence sales personnel in an industrial sales setting. The purpose of this study is to investigate the relationship between retail sales managers' power bases and retail salespeople's job satisfaction, role conflict, role ambiguity, work motivation, organizational commitment, and job performance. Results of the study suggest that noncoercive sources of power have greater influence on these variables than does coercive power.     

Sales Training: Salespeople's Preparedness and Managerial Implications

Abstract

Salespeople use a variety of selling techniques in their jobs. Little published research, however, has examined how adequately sales training programs prepare sales personnel to employ these techniques. This paper reports the results of a survey that focused on salespeople's adequacy of preparation to utilize various sales techniques. The results of the study lead to several managerial implications about how to improve sales training programs.     

The risky side of inspirational appeals in personal selling: when do customers infer ulterior salesperson motives?

In personal selling, the inspirational appeal (IA) is a widely promoted tactic that aims at stimulating customers' values and ideals, thereby evoking emotions and arousing their enthusiasm for a product. However, whether IAs in fact improve or undermine salespeople's success in sales talks remains controversial. Therefore, this study examines consequences and key contingencies of IAs in customer–salesperson interactions in a retailing context, using multisource data from several retailing industries for three quantitative studies, comprising a total sample of 590 customer and 174 salesperson responses. Drawing on the Multiple Inferences Model (MIM), the authors show that an IA is likely to drive the customer's inference that the salesperson holds ulterior motives. IAs seem to be particularly detrimental for salespeople with a lack of customer orientation. Beyond expanding research on influence tactics and the ambivalent role of IAs in retailing interactions, these findings can guide practitioners about when to refrain from using an IA.