Understanding the Impact of Relationship Disruptions

Understanding the Impact of Relationship Disruptions takes a counterintuitive perspective on how salesperson turnover may in fact increase customer value and satisfaction. By understanding customer relationships and buying motivation in depth, a marketer can effectively address the “promotion P” of marketing.

According to the article, customer relationships account for 20% of a company’s overall financial value. There is countless evidence supporting these relationships have a high impact on customer retention, which increases profit for a multitude of reasons (15 Statistics that should have changed the business world but haven’t). With this in mind, it is reasonable to conclude that any disruption to existing relationships should be explored and taken seriously.

Research presented within the article indicates that salesperson turnover can lead to a loss of customer knowledge, trust, and revenue. However, Understanding the Impact of Relationship Disruptions takes a look at how there is potentially positive effects from introducing a new salesperson. The article states that benefits are contingent on how well a firm understands why and to whom a customer is loyal. If there is a long-lasting relationship with a firm that is perceived as trustworthy and of value, an interpersonal disruption will be less likely to result in a negative impact.  Overall, interpersonal relationships disruptions tend to decrease resale revenue, but can increase new sales revenue through new insight and value to the customer. The financial benefit gained by the customer, complex purchases, variability of purchases, cross-selling intensity, and personal communication by the salesperson, all influence whether or not the interpersonal disruption will be positive or negative.

The focus of the article was to point out that introducing a new salesperson can lead to opportunities as opposed to being seen as a risk. The insight gained from this perspective is that it highlights how important every detail in customer relationship management is. The more  firms observe and understand its relationship to a customer, the better it can correctly identify the right course of action. 

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