Sales leaders spend heavily on software that promises sharper insights and bigger wins. But a new study in the Journal of Marketing shows you can squeeze far more value out of a tool you already own (like a simple leaderboard) if you present it the right way.
What the researchers tracked
Four academics, Molly Ahearne, Mohsen Pourmasoudi, Yashar Atefi, and Son K. Lam, looked at 27,318 salespeople in 170 firms across 83 countries. Over multiple quarters, each firm rotated three styles of rankings:
- Anonymous list – Names vanish. Everyone sees a numbered line-up from first to last.
- Named list – Spots and names appear together.
- Named list with quotas – Same as the second list, plus each seller’s quota for the period.
They matched every style with two results: quota attainment and turnover over twelve months.
What they found
Anonymous lists lift performance yet push people out.
Quota attainment rose about four percentage points. Nice. But resignations rose almost two percentage points, enough to wipe out gains once you add hiring and training costs.
Named lists hit the sweet spot.
When names joined ranks, quota attainment jumped nearly seven points while turnover fell a shade. Peer visibility seems to spark extra effort without the side-effects of secrecy.
Adding quotas adds clutter.
Layering quota data over the named list changed almost nothing. Reps already know their target; printing it beside every name doesn’t push them harder.
Why the reactions differ
Social-comparison theory explains much of it. People judge progress by looking sideways, not in a vacuum. Show me that I lag behind John and my goal is clear: pass John. Hide John’s name and I chase an abstract number, so frustration sets in faster.
The study also hints at status anxiety. A public slip from fifth to ninth hurts, yet the short-term sting often drives action. Hidden ranks turn that public sting into private doubt. Doubt festers.
What you can do this quarter
Keep the board simple and visible. One named ranking, refreshed daily, gives enough data to fuel ambition without turning the dashboard into a spreadsheet soup.
Watch your exit interviews. If new names appear in the bottom quartile each month, check whether they leave sooner. A leaderboard tweak may fix churn faster than a bonus tweak.
Pair recognition with the board. The researchers didn’t test trophies or shout-outs, but psychology suggests that a small public nod cushions the blow for those stuck in the middle while still rewarding the top.
Trial small changes first. A two-week A/B test inside one region costs little and shows whether your culture reacts like the average firm in the study.
Side notes worth your attention
The money at stake is huge. US spend on sales-performance tech is in the billions today, and is only expected to rise more. A leaderboard format change costs pennies, so the return on that tweak can dwarf the return on new software.
Gender dynamics remain unclear. The data set was global, but the paper didn’t split reactions by gender. Past research suggests social comparison affects men and women differently. You may want to run your own cut.
Culture matters. Japanese reps face stronger group norms than American ones. If your team mixes cultures, test formats in each market rather than copying a single global template.
Turnover isn’t always bad. A mild rise can clear room for newcomers who pick up the new playbook faster. Just track replacement cost and lost revenue to know where the break-even line sits.
A brief opinion
Sales is already a marathon of “How am I doing?” You owe reps a clear answer. A scoreboard with names does that job. Anything less feels like playing darts in the dark and talent will wander to a brighter room.
Citation: Ahearne, M., Pourmasoudi, M., Atefi, Y., & Lam, S. K. (2024). Sales Performance Rankings: Examining the Impact of the Type of Information Displayed on Sales Force Outcomes. Journal of Marketing, 0(0). doi.org/10.1177/00222429241264191