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Rice University research uses data to spot your best sales team members

By accounting for both known and unknowable factors, managers can identify salespeople with traits that work best in different types of sales. Getty Images

When you're a manager, decisions barrage you each day. What product works? Which store layout entices? How will you balance the budget? Many of these decisions ultimately hinge on one factor: the skills of your sales force.

Often, when managers evaluate their salespeople they contend with invisible factors that may not show up in commissions or name-tagged sales rosters — intangibles such as product placement, season or simply a store's surrounding population. This makes it hard to fully evaluate a salesperson, or to spot which workers can teach valuable skills to their peers and improve the whole team.

But what if you could plug a few variables into a statistical model to spot your best sellers? You could then ask the star salespeople to teach coworkers some of their secrets. New research by Rice Business professor Wagner A. Kamakura and colleague Danny P. Claro of Brazil's Insper Education and Research Institute offers a technique for doing this. Blending statistical methods that incorporate both known and unknown factors, Kamakura and Claro developed a practical tool that, for the first time, allows managers to identify staffers with key hidden skills.

To test their model, the researchers analyzed store data from 35 cosmetic and healthcare retail franchises in four South American markets. These particular stores were ideal to test the model because their salespeople were individually responsible for each transaction from the moment a customer entered a store to the time of purchase. The salespeople were also required to have detailed knowledge of products throughout each store.

Breaking down the product lines into 11 specific categories, and accounting for predictors such as commission, product display, time of year and market potential, Kamakura and Claro documented and compared each salesperson's performance across products and over time.

They then organized members of the salesforce by strengths and weaknesses, spotlighting those workers who used best practices in a certain area and those who might benefit from that savvy. The resulting insight allowed managers to name team members as either growth advisors or learners. Thanks to the model's detail, Kamakura and Claro note, managers can spot a salesperson who excels in one category but has room to learn, rather than seeing that worker averaged into a single, middle-of-the-pack ranking.

If a salesperson is, for example, a sales savant but lags in customer service, managers can use that insight to help the worker improve individually, while at the same time strategizing for the store's overall success. Put into practice, the model also allows managers to identify team members who excel at selling one specific product category — and encourage them to share their secrets and methods with coworkers.

It might seem that teaching one employee to sell one more set of earbuds or one more lawn chair makes little difference. But applied consistently over time, such personalized product-specific improvement can change the face of a salesforce — and in the end, a whole business. A good manager uses all the tools available. Kamakura and Claro's model makes it possible for every employee on a sales team to be a potential coach for the rest.

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This story originally ran on Rice Business Wisdom.

Based on research from Wagner A. Kamakura, the Jesse H. Jones Professor of Marketing at Jones Graduate School of Business at Rice University.

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Building Houston

 
 

After working with thousands of interns, Allie Danziger of Ampersand Professionals says she's now got a product to upskill and train new hires for employers. Photo courtesy of Ampersand

After seeing success with her internship training and matchmaking platform, Allie Danziger, founder and CEO of Ampersand Professionals, has expanded the concept to include a new hire training service that allows employers to better optimize the onboarding process and have a well-trained new staff member from day one.

In just over a year, Ampersand has worked with over 7,000 professionals through its original concept of upskilling and matching young professionals to internship programs. A few months ago, Danziger and her team expanded to include career development training for students first entering the workforce with the City of Houston's Hire Houston Youth program. Danziger says it was developing out the platform for this program that proved there was a need for this type of training.

"While we have focused on matching professionals with businesses for paid internships, we recognized a further gap with employers that have their own recruiting/talent acquisition teams, or just their own preferred way of bringing on entry-level talent, and didn’t have a need for our matching platform," Danziger tells InnovationMap. "But, they recognized the benefit of our proven training platform that pre-vets and de-risks their hires, and still wanted access to the training for their own hires."

The new program has evolved from training interns to new hires, so parts of the program that focuses on interviewing or applying for a job have been removed. Instead, the 8.5 hours of training focuses on networking, best practices for working with a manager and team, performance reviews, common software training, and more.

Danziger says usually new hires need the most experienced mentor or manager, but they don't usually get that support — especially when it comes to businesses that don't have their own built-out mentorship or training program.

"Ampersand’s new training product fills that gap — it gives employers of any size any easy solution to provide basic job readiness training to employees, access to our team of dedicated coaches, and a detailed report at the end of their training summarizing how their new hire did in the training and any trends recognized and tips for managing this employee based on what the platform uncovered," she says. "Businesses can also sign up for additional coaching sessions and customize training materials, as an add-on if interested."

The program costs the employer $100 per new employee, and checkout online takes less than a minute. Through both this program and the original internship program, Ampersand is constantly evolving its training content.

"These professionals are going through the same training experience that we have proven out over the last year, and we are constantly adding to based on data we see in the user experience," Danziger says.

Danziger recently joined the Houston Innovators Podcast discuss some of the benchmarks she's met with Ampersand, as well as the importance of investing in Gen Z hires. Listen to that episode below.


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