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Why I think good service people MIGHT be more valuable than sales people...

There is a great conversation developing on LinkedIn.  Why don't you join the party and chime in here?

 

Here's my case for service people...

 

http://en.wikipedia.org/wiki/Attrition_rate 

http://en.wikipedia.org/wiki/Customer_attrition 

The old Ivy League adage goes, "It costs more than twice as much to retain an existing customer vs. investing to land a new customer.  All the money is still green.  Why not take the easy route to the same results?" 

Don't teams also SHOOT for 90% retention rates among season ticket holders...?

I'm not discounting sales people here.  I'm a hunter myself.  Probably too much of one... but I couldn't function without great leadership and great people around me supporting my efforts and making me better.

 

Challenge me!  I love intellectual discourse on the topic of sports business and revenue-generation strategies...

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Comment by Shantai Dixon on July 15, 2011 at 9:26am
Good point.  I agree that service people may have a tougher job than sales people because of the retention rate.  It is hard to keep people happy, especially when they start having expectations.  But I believe that sales people have the more important role.  You can't keep people on board until you get people on board, so service people can't do there job unless sales people are doing theirs first.
Comment by Stephen Masterson on July 15, 2011 at 1:00pm

Would you ask a janitor to do accounting?  

 

Of course not!  

 

I agree with you completely, Shantai.  My point is that sales AND service matter.  We've been preaching that same message since 1995.  We may have accidentally predicted the future.  =)

Comment by jason.l.velez on July 15, 2011 at 2:14pm
Steve, i believe the real issue is that most salespeople do not maintain a relationship with the customer after their initial purchase, which is what makes the retention rates decrease.  I could argue that in some instances the concept of having a separate rep retain the client after the initial purchase is part of what makes keeping them so difficult.  It cheapens the initial purchase.  Now I do see value in allowing sales people to focus on selling but your best customer is someone who has already purchased.
Comment by Stephen Masterson on July 15, 2011 at 2:31pm

Great argument, Jason.  Our answer to that question would be fewer accounts and more reps...  

 

In any other business outside of sports, that's how it is done.  Budget and work space constraints, among other issues, often prevents this from becoming a reality.

 

How do you have a larger sales force if you don't have the leaders, systems, culture, and infrastructure in place to support that investment?

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