The Value of Potential Customer Information

This study examines whether the use of potential customer information produced and provided by telemarketers (inside salespeople) to sales representatives (field salespeople) contributes to an increase in the probability of closing contracts. We find that the provision of additional information by inside salespeople improves the probability of closing a deal for a class of potential customers that field salespeople are less likely to contact in the course of their regular job responsibilities. However, no improvement was observed for the class of potential customers that field salespeople are usually contacting in the course of their regular job responsibilities. These results imply that the use of appropriate information can improve company performance.