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Death to Selling (Part 3). Change the compensation system.

At Xerox, when new CEO Anne Mulcahey wanted to change the sales culture, she did this:

If you bring in a new customer, you get a bonus, as usual. No change there, then. If the customer chooses not to renew the contract after a year, you, the salesperson, lose three times the bonus you earnt for bringing them in. It’s taken away from you.

How effective do you think that was in switching the sales team’s focus from ‘hit and run’ to customer retention?

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