Scientific articles contain valuable management implications, but are usually not very easy to digest. We summarize the core results so that you can use the latest research findings for your company.
What is the article about?
To remain competitive, companies must retain their existing customers over the long term while simultaneously acquiring new ones. Traditionally, these tasks were strictly separated in sales and handled by specialized roles. Today, however, sales professionals are increasingly expected to master both disciplines. This dual strategy, known as ambidexterity, involves sales employees engaging in both customer acquisition (hunting) and customer retention (farming). While this approach may seem beneficial at first glance, it can present a significant additional burden for employees.
Which factors are relevant?
This study examines 217 sales employees from U.S.-based B2B companies. The authors analyze how simultaneously focusing on customer acquisition and retention impacts salespeople’s stress levels and well-being, considering two key factors:
- Service Tasks: This refers to the portion of non-sales-related activities that salespeople handle (e.g., tracking orders, handling complaints). A higher proportion of service tasks leaves less time for core sales activities.
- Outcome Focus: This describes the extent to which management evaluates and rewards salespeople based on measurable objectives (e.g., sales volume, revenue). This approach can increase pressure on employees, as their performance is primarily assessed by measurable outcomes.
What are the key findings?
The study reveals that sales employees experience higher levels of stress when they are responsible for both customer acquisition and retention. This stress level further increases when they also have time-intensive service tasks. Stress is compounded when management is highly outcome-focused. The combination of extensive service demands and an outcome-driven control system can significantly impact the well-being of sales employees, ultimately reducing their job satisfaction and long-term performance.
What does this mean for companies?
Companies can create a more productive environment where sales employees can reach their full potential by focusing on the following actions:
- Clearly Assign Tasks: Establish clear responsibilities throughout the end-to-end customer process. A targeted separation of tasks for acquisition and customer retention enhances clarity and efficiency.
- Encourage Specialization: Leverage the individual strengths of your employees and enable specialization rather than enforcing a uniform skill set. This approach promotes targeted skill development and helps prevent burnout.
- Align Incentive Systems: Design an incentive system based on clear, role-specific metrics that reflect employees’ actual areas of influence. Evaluate whether distinct goals for hunting and farming are beneficial to set realistic and motivating targets.
Original text:
McClure, C. E., DeCarlo, T. E., & Hansen, J. D. (2024). The dark side of salesperson ambidexterity: how salesperson ambidexterity increases felt stress. Industrial Marketing Management, 122, 78-88.