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

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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.

Keeping on track with trends is crucial to growing and developing a relationship with your customers, these Rice University researchers found. Getty Images

Rice researcher delves into the importance of trendspotting in consumer behavior

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Every business wants to read consumers' minds: what they love, what they hate. Even more, businesses crave to know about mass trends before they're visible to the naked eye.

In the past, analysts searching for trends needed to pore over a vast range of sources for marketplace indicators. The internet and social media have changed that: marketers now have access to an avalanche of real-time indicators, laden with details about the wishes hidden within customers' hearts and minds. With services such as Trendistic (which tracks individual Twitter terms), Google Insights for Search and BlogPulse, modern marketers are even privy to the real-time conversations surrounding consumers' desires.

Now, imagine being able to analyze all this data across large panels of time – then distilling it so well that you could identify marketing trends quickly, accurately and quantitatively.

Rice Business professor Wagner A. Kamakura and Rex Y. Du of the University of Houston set out to create a model that makes this possible. Because both quantitative and qualitative trendspotting are exploratory endeavors, Kamakura notes, both types of research can yield results that are broad but also inaccurate. To remedy this, Kamakura and Du devised a new model for quickly and accurately refining market data into trend patterns.

Kamakura and Du's model entails taking five simple steps to analyze gathered data using a quantitative method. By following this process of refining the data tens or hundreds of times, then isolating the information into specific seasonal and non-seasonal trends or dynamic trends, researchers can generate steady trend patterns across time panels.

Here's the process:

  • First, gather individual indicators by assembling data from different sources, with the understanding that the information is interconnected. It's crucial to select the data methodically, rather than making random choices, in order to avoid subjectively preselecting irrelevant indicators and blocking out relevant ones. Done sloppily, this first step can generate misleading information.
  • Distill the data into a few common factors. The raw data might include inaccuracies, which must be filtered out to lower the risk of overreacting or noting erroneous indicators.
  • Interpret and identify common trends by understanding the causes of spikes or dips in consumer behavior. It's key to separate non-cyclical and cyclical changes, because exterior events such as holidays or weather can alter behavior.
  • Compare your analysis with previously identified trends and other variables to establish their validity and generate insights. Looking at past performance through the filter of new insights can offer managers important guidance.
  • Project the trend lines you've identified using historical tracking data and their modeling framework. These trend lines can then be extrapolated into near-future projections, allowing managers to better position themselves and be proactive trying to reverse unfavorable trends and leverage positive ones.

It's important to bear in mind that the indicators used for quantitative trendspotting are prone to random and systematic errors, Kamakura writes. The model he devised, however, can filter these errors because it keeps them from appearing across different series of time panels. The result: better ability to identify genuine movements and general trends, free from the influence of seasonal events and from random error.

It goes without saying that the information and persuasiveness offered by the internet are inevitably attended by noise. For marketers, this means that without filtering, some trends show spikes for temporary items – mere viral jolts that can skew market research.

Kamakura and Du's model helps sidestep this problem by blending available historical data analysis, large time panels and movements while avoiding errors common to more traditional methods. For managers longing to glimpse the next big thing, this analytical model can reveal emerging consumer movements with clarity – just as they're becoming the future.

(For the mathematically inclined, and those comfortable with Excel macros and Add-Ins, who want to try trendspotting on their own tracking data, Kamakura's Analytical Tools for Excel (KATE) can be downloaded for free at http://wak2.web.rice.edu/bio/Kamakura_Analytic_Tools.html.)

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This article originally appeared on Rice Business Wisdom.

Wagner A. Kamakura is Jesse H. Jones Professor of Marketing at Jones Graduate School of Business at Rice University.

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Op-Ed: Removing barriers is critical for the future of Houston's health care workforce

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Houston houses one of the most renowned medical communities in the world. However, Texas' current health care workforce shortage has severely impacted the city, with large swaths of the Gulf Coast Region deemed medically underserved. Thousands of Houstonians are impacted year after year due to the lack of access to life-saving medical care.

The obvious solution to this problem is to form a pipeline of health care workers by equipping students with the necessary skills and education to fill this gap. Sadly, many individuals who lack opportunity yet aspire to pursue a career in the health care industry face barriers related to childcare, transportation, mentorship gaps and life's unexpected circumstances.

Dwyer Workforce Development (DWD), a national health care training nonprofit, has recently expanded its footprint to Texas and has joined Houston Community College (HCC), one of the largest community colleges in the country, to provide life-changing support and create a pipeline of new health care workers, many who come from underserved areas.

Last year, our organizations launched the Dwyer Scholar Apprenticeship program, which is actively enrolling to combat the health care shortage and bring opportunities to those lacking. Working together, we are supporting apprentices each year to earn their Certified Nurse Aide (CNA) certificates, where students can choose a Phlebotomy or EKG specialization, helping our city meet the demand for one of the most essential and in-demand jobs in health care each year. Our program will help address Texas' loss of 36 percent of its CNAs over the past decade while providing gateways for highly motivated students—Dwyer Scholars—to thrive in long-term health care careers.

We know financial barriers prevent many potential health care workers from obtaining the certifications needed to enter the workforce. That's why we are bringing our innovative programs together, enabling Scholars to earn while they learn and opening doors for those who do not have the financial luxury of completing their training in a traditional educational atmosphere.

After enrollment, DWD continues to provide case management and additional financial support for pressures like housing, childcare, and transportation so Scholars don't have to put their work before their education. Scholars are placed with employers during the program, where they complete their apprenticeships and begin full-time employment following graduation.

The Texas Workforce Commission has identified apprenticeship programs as a key area for expansion to meet employer demand for skilled workers. Through our partnership, we are doing just that – and the model is proven. More than 85 percent of DWD Scholars in Maryland, where the program was established, have earned their certificates and are now employed or on track to begin their careers.

Our work doesn't end here. Over the next decade, Texas will face a shortage of 57,000 skilled nurses. Texas must continue to expand awareness and access to key workforce training programs to improve outcomes for diverse needs. Our organizations are working to vastly expand our reach, making the unattainable attainable and helping to improve the lives and health of our community.

No one's past or present should dictate their future. Everyone deserves access to health care, the ability to further their education and the chance to set and achieve life goals. The opportunities to reach and empower underserved populations to participate in the health care workforce are limitless.

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Barb Clapp is CEO of Dwyer Workforce Development, a nonprofit that supports individuals who aspire to pursue a career in the health care industry. Christina Robinson is the executive director for work-based learning and industry partnerships at Houston Community College.

Houston Spaceport takes off with second phase of development

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Since the Houston Spaceport secured the 10th FAA-Licensed commercial spaceport designation in 2015, the development's tenants have gone on to secure billions in NASA contracts. Now, the Houston Spaceport is on to its next phase of growth.

“Reflecting on its meteoric rise, the Spaceport has seen remarkable growth in a short span of time. From concepts on paper to the opening of Axiom Space, Collins Aerospace, and Intuitive Machines, the journey has been nothing short of extraordinary,” says Arturo Machuca, director of Ellington Airport and the Houston Spaceport, in a news release. “These anchor tenants, collectively holding about $5 billion in contracts with NASA and other notable aerospace companies, are not just shaping the future of space exploration but injecting vitality into Houston’s economy.”

The next phase of development, according to Houston Airports, will include:

  • The construction of a taxiway to connect Ellington Airport and the Spaceport
  • The construction of a roadway linking Phase 1 infrastructure to Highway 3
  • The expansion of the EDGE Center, in partnership with San Jacinto College

Rendering via Houston Airports

The Houston Spaceport's first phase completed in 2019. Over the past few years, tenants delivered on their own buildouts. Last year, Intuitive Machines moved into its new $40 million headquarters and Axiom Space opened its test facility. In 2022, Collins Aerospace cut the ribbon on its new 120,000 square-foot facility.

“The vision for the Houston Spaceport has always been ambitious,” says Jim Szczesniak, director of Aviation for Houston Airports. “Our vision is to create a hub for aviation and aerospace enterprises that will shape the future of commercial spaceflight.”

Educational partners have also revealed new spaces, including San Jacinto College's EDGE Center, which broke ground in July of 2019, finally celebrated its grand opening in 2021. Last year, Texas Southern University got the greenlight to operate an aeronautical training hub on a two-acre site at Ellington Airport.

“By providing the education and training needed to sustain jobs in the rapidly evolving space industry, the Spaceport is not only attracting companies but also nurturing the talent that will drive Houston's aerospace sector forward,” continues Szczesniak in the release.

New report calls for Houston health care community to take action amid climate change

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A new report underscores an “urgent need” for health care systems in the Houston area to combat climate change and avoid an environmental “code blue.”

“By adopting collaborative strategies and leveraging technological innovations, health care providers can play a pivotal role in safeguarding the health of Houston’s residents against the backdrop of an evolving climate landscape,” says the report, published by the Center for Houston’s Future.

Among the report’s recommendations are:

  • Advocate for policies that promote decarbonization.
  • Create eco-friendly spaces at hospitals and in low-income communities, among other places.
  • Recruit “champions” among health leaders and physicians to help battle climate change.
  • Establish academic programs to educate health care professionals and students about climate health and decarbonization.
  • Bolster research surrounding climate change.
  • Benchmark, track, and publish statistics about greenhouse gas emissions “to foster accountability and reduce environmental impacts of the health care sector.” The report notes that the U.S. health care sector emits 8.5 percent of the country’s greenhouse gases.

“By embracing collaborative strategies, acting with urgency and implementing sustainable practices, our region’s health care providers can play a pivotal role in creating a healthier, more resilient Houston,” says Brett Perlman, outgoing president and CEO of the Center for Houston’s Future. “If we work together, given all the collective wisdom, resources and innovation concentrated in our medical community, we can tackle the challenges that are confronting us.”

The report highlights the threat of climate-driven disasters in the Houston area, such as extreme heat, floods, and hurricanes. These events are likely to aggravate health issues like heatstroke, respiratory illnesses, cardiovascular diseases, and insect-borne diseases, says the report.

St. Luke’s Health, a nonprofit health care system with 16 hospitals in the Houston area and East Texas, provided funding for the report.

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This article originally ran on EnergyCapital.

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