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Keeping Your Sales Force After the Merger
Eighty percent of merging companies say they want more sales from their deals, but in most cases they become so focused on integration and cost cutting that they take their eyes off their customers, and revenue growth actually declines. A failure to meet revenue targets hits the bottom line far more than a failure to meet cost objectives. After all, you can always trim costs, but revenue is fragile—once your customers walk, it is difficult to win them back. Smart companies secure their customer base before merger turmoil takes its toll. The sales force is the key.
The take-away: Companies can avoid the revenue trap that sinks merger after merger, but only if they spend as much time wooing their own salespeople and customers as they do winning over Wall Street. With well-orchestrated sales force and customer retention plans and the right financial incentives for sales reps, managers will find that acquisitions can pay off after all.
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