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To Discourage a Salesperson from Ruining a Customer Relationship by Pushing

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To discourage a salesperson from ruining a customer relationship by pushing too hard to close a deal and earn a commission,companies are designing compensation plans that reward salespeople for building customer relationships and growing the long-run value of each customer.


Definitions:

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and other expenses directly related to the acquisition.

Forward Contract

A forward contract is a customizable financial agreement between two parties to buy or sell an asset at a specified price on a future date.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

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