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A New Model for Measuring Salesperson Lifetime Value

ISI: A New Model for Measuring Salesperson Lifetime Value

PABLO FARÍAS N., R. MORA G., EDUARDO TORRES M.

2017 - Journal of Business and Industrial Marketing - Vol. 22, N° 2, Pp 274 - 281

Abstract

A better understanding of the value of the salesperson should lead to changes in the way these salespersons aremanaged. A model for predicting salesperson lifetime value (SLV) can aid managers in acquiring, developing, allocating, retaining, utilizing, evaluating and rewarding valuable salespersons. The objective of this paper is to propose a salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the salesperson equity. This article provides a starting point for salesperson valuation, sparking more interest in this area and brings the fields of marketing, human resources and finance closer together.

Keywords

Salesperson valuation; intangible assets; salesperson value accounting; valuation approaches; financial reporting.

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