IDEAS home Printed from https://ideas.repec.org/a/pal/jmarka/v11y2023i4d10.1057_s41270-023-00236-4.html
   My bibliography  Save this article

Modeling independent sales representative performance: application of predictive analytics in direct selling for improved outcomes

Author

Listed:
  • Caroline Glackin

    (Fayetteville State University)

  • Murat Adivar

    (Fayetteville State University)

Abstract

This research supports improved salesforce outcomes for companies with independent sales representatives via the application of emerging technologies. It is framed in expectancy theory (in: Vroom, Work and motivation, Wiley, New York, 1964), Herzberg’s et al. (The motivation to work, Wiley, New York, 1959) two factor theory, and the job demands and resources model (JD-R) (Bakker and Demerouti in J Manag Psychol 22:309–328, 2007). The study analyzes the 2018 National Salesforce Survey (USA) commissioned by the Direct Selling Association (Washington, DC, USA). It identifies key factors in salesforce motivation and performance theories studied within these theoretical frames and channel-specific inputs for direct selling independent representatives. While researchers apply multiple methods to salesforce motivation and performance, the power of machine learning has not been applied to independent representatives and their unique circumstances. This research employs supervised learning algorithms for predictive analytics to create models for recruits and existing independent representatives. It finds that the most crucial factors align with expectancy theory for both. Allocated time for direct selling, ability to find new customers, gender, and adopting direct selling as a career play key roles in predicting sales success for individuals entering direct selling. The highest-performing representatives are characterized by time invested, experience of direct selling, recruitment, tenure, and use of technology. By predicting representative success factors, organizations can tailor recruitment, training, and incentives to maximize performance. Because independent sales representatives are not employees, understanding these factors is critical to firms engaging them. Translating established theory into testing with predictive analytics to identify meaningful success factors for rarely studied independent sales representatives has the potential to change the landscape for recruitment, retention, and success.

Suggested Citation

  • Caroline Glackin & Murat Adivar, 2023. "Modeling independent sales representative performance: application of predictive analytics in direct selling for improved outcomes," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 613-628, December.
    • Handle: RePEc:pal:jmarka:v:11:y:2023:i:4:d:10.1057_s41270-023-00236-4
    DOI: 10.1057/s41270-023-00236-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41270-023-00236-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41270-023-00236-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ioana-Mădălina Purcaru & Ana-Maria Urdea & Cristinel Petrişor Constantin & Gabriel Brătucu, 2022. "Building Long-Term Business Sustainability: The Influence of Experiential Marketing on Sales Representatives’ Loyalty to Multi-Level Marketing Systems," Sustainability, MDPI, vol. 14(15), pages 1-16, August.
    2. Willy Bolander & Nawar N. Chaker & Alec Pappas & Daniel R. Bradbury, 2021. "Operationalizing salesperson performance with secondary data: aligning practice, scholarship, and theory," Journal of the Academy of Marketing Science, Springer, vol. 49(3), pages 462-481, May.
    3. Virginia Barba-Sánchez & Carlos Atienza-Sahuquillo, 2017. "Entrepreneurial motivation and self-employment: evidence from expectancy theory," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1097-1115, December.
    4. Sucheta Agarwal & Vivek Agrawal & Anand Mohan Agrawal, 2018. "Motivational and success factors: through the lens of women entrepreneurship," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 17(4), pages 307-328.
    5. Crittenden, Victoria L. & Crittenden, William F., 2004. "Developing the sales force, growing the business: The direct selling experience," Business Horizons, Elsevier, vol. 47(5), pages 39-44.
    6. Cynthia Benzing & Hung Manh Chu & Orhan Kara, 2009. "Entrepreneurs in Turkey: A Factor Analysis of Motivations, Success Factors, and Problems," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(1), pages 58-91, January.
    7. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.
    8. Bhattacharya, Patralekha & Mehta, Krishna Kumar, 2000. "Socialization in network marketing organizations: is it cult behavior?1," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(4), pages 361-374, July.
    9. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2019. "Empowering women micro-entrepreneurs in emerging economies: The role of information communications technology," Journal of Business Research, Elsevier, vol. 98(C), pages 191-203.
    10. Herjanto, Halimin & Franklin, Drew, 2019. "Investigating salesperson performance factors: A systematic review of the literature on the characteristics of effective salespersons," Australasian marketing journal, Elsevier, vol. 27(2), pages 104-112.
    11. Merrilees, Bill & Miller, Dale, 1999. "Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers," Journal of Business Research, Elsevier, vol. 45(3), pages 267-273, July.
    12. Elizabeth J. Gatewood & Kelly G. Shaver & Joshua B. Powers & William B. Gartner, 2002. "Entrepreneurial Expectancy, Task Effort, and Performance," Entrepreneurship Theory and Practice, , vol. 27(2), pages 187-206, April.
    13. Willy Bolander & Nawar N. Chaker & Alec Pappas & Daniel R. Bradbury, 2021. "Correction to: Operationalizing salesperson performance with secondary data: aligning practice, scholarship, and theory," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1267-1268, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ryan Mullins & Raj Agnihotri, 2022. "Digital selling: organizational and managerial influences for frontline readiness and effectiveness," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 800-821, July.
    2. Alina-Maria Neatu & Cosmin-Ionut Imbrisca, 2016. "An Overview Of The Direct Selling Industry," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 987-994, July.
    3. Ashraf Borham & Rosfizah Binti Md Taib & Gyanendra Singh Sisodia & Akinola Fadahunsi, 2023. "Factors of Women Entrepreneurship in Egypt: A Qualitative Perspective," SAGE Open, , vol. 13(4), pages 21582440231, October.
    4. Peesker, Karen M. & Kerr, Peter D. & Bolander, Willy & Ryals, Lynette J. & Lister, Jonathan A. & Dover, Howard F., 2022. "Hiring for sales success: The emerging importance of salesperson analytical skills," Journal of Business Research, Elsevier, vol. 144(C), pages 17-30.
    5. Valerie Good & Douglas E. Hughes & Ahmet H. Kirca & Sean McGrath, 2022. "A self-determination theory-based meta-analysis on the differential effects of intrinsic and extrinsic motivation on salesperson performance," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 586-614, May.
    6. Faheem Ahmad Khan & Tahir Saeed & Muhammad Umer Quddoos & S.M. Ali Zaidi, 2022. "The Effect of Transformational Leadership Style on Emotional Engagement of Salespersons and its Downstream Effect on Creative Performance: Role of Meaningfulness in Work," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 163-172, December.
    7. Fred Miao & Yi Zheng & Zhimei Zang & Douglas B. Grisaffe & Kenneth Evans, 2022. "Managing differential effects of salespersons’ regulatory foci–a dual process model of dominant and supplemental pathways," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 563-585, May.
    8. Dishop, Christopher R. & Good, Valerie, 2022. "A dynamic system of job performance with goals and leadership changes as shocks," Journal of Business Research, Elsevier, vol. 139(C), pages 602-613.
    9. Marie Louise Radanielina Hita & Yany Grégoire & Bruno Lussier & Simon Boissonneault & Christian Vandenberghe & Sylvain Sénécal, 2023. "An extended health belief model for COVID-19: understanding the media-based processes leading to social distancing and panic buying," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 132-152, January.
    10. Sebastian Forkmann & Ryan Mullins & Stephan C. Henneberg & Thomas L. Baker, 2022. "Choreographing salesperson face-to-face visits with a buyer organization: a social network perspective," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 615-638, May.
    11. Mullins, Ryan & Swain, Scott & Friend, Scott B., 2023. "How and should firms motivate salesperson effort across a Multi-Brand Portfolio?," Journal of Business Research, Elsevier, vol. 158(C).
    12. Juliana Moletta & Gustavo Dambiski Gomes Carvalho & Revenli Fernanda Nascimento & Bertiene Maria Lack Barboza & Luis Mauricio Resende & Joseane Pontes, 2023. "Business networks of women entrepreneurs: an analysis of the expectation and reality of factors that affect trust in a business network," Journal of Intelligent Manufacturing, Springer, vol. 34(3), pages 1021-1036, March.
    13. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2020. "Women in sales in developing countries: The value of technology for social impact," Business Horizons, Elsevier, vol. 63(5), pages 619-626.
    14. Nan Langowitz & Maria Minniti, 2007. "The Entrepreneurial Propensity of Women," Entrepreneurship Theory and Practice, , vol. 31(3), pages 341-364, May.
    15. Veland Ramadani & Sucheta Agarwal & Andrea Caputo & Vivek Agrawal & Jitendra Kumar Dixit, 2022. "Sustainable competencies of social entrepreneurship for sustainable development: Exploratory analysis from a developing economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3437-3453, November.
    16. Samuel Mongrut & Nidia Juárez, 2018. "Valuation of Start-ups: A Behavioral and Strategic Perspective," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 13(3), pages 419-439, Julio-Sep.
    17. Boudreaux, Christopher, 2019. "Do private enterprises outperform state enterprises in an emerging market? The importance of institutional context in entrepreneurship," MPRA Paper 93039, University Library of Munich, Germany.
    18. E. Zabelina & D. Tsiring & Yu Chestyunina, 2018. "Personal helplessness and self-reliance as predictors of small business development in Russia: pilot study results," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 279-293, June.
    19. Rosa Caiazza & Phillip Phan & Erik Lehmann & Henry Etzkowitz, 2021. "An absorptive capacity-based systems view of Covid-19 in the small business economy," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1419-1439, September.
    20. Diana Hechavarria & Maija Renko & Charles Matthews, 2012. "The nascent entrepreneurship hub: goals, entrepreneurial self-efficacy and start-up outcomes," Small Business Economics, Springer, vol. 39(3), pages 685-701, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jmarka:v:11:y:2023:i:4:d:10.1057_s41270-023-00236-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.