Figure 1From “What the customer relationship costs while it stays”
The loss has an address
Annual customer sales change after a salesperson departure, by replacement type. The existing-rep figure is statistically indistinguishable from zero.
Figure 1The loss has an address
Source: Shi, Sridhar, Grewal & Lilien (2017), Table 10: difference-in-differences estimates transformed as e^b−1; 830 disrupted customers against 1,615 matched controls at one Fortune 500 U.S. electrical-components distributor, noncompete in force. One firm; a disruption cost, not a defection cost.

Source and evidence
Each line names a claim related to this exhibit, its source, and how it was checked.
- A SSGL17-C2 The reassignment losses, verbatim: "Customers reassigned to new hires exhibited a 21.6% sales loss, and those reassigned to existing sales reps exhibited an 11.0% sales loss", and the authors report the decay too: "for new hires, 12.5% sales loss over ten quarters vs. 21.6% for one year"Shi, Sridhar, Grewal & Lilien (2017), Table 10
- A SSGL17-C5 The setting carries a legal constraint that bounds every reading of the result: "A noncompete agreement prevents departing sales reps legally from taking any" customers with them if they are hired by a competitorShi, Sridhar, Grewal & Lilien (2017), data section
Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.
From the essay
Growth that compounds
What the customer relationship costs while it stays
Everyone prices the day your best salesperson leaves. The tie has a second cost that runs while they stay: it chooses who your customers are.
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