Question
The management team of a call center is making some reductions to staff. They must decide between two outbound salespeople, and they plan to make
The management team of a call center is making some reductions to staff. They must decide between two outbound salespeople, and they plan to make their decision based on who has a higher probability of making sales. They know that in the sales business repeat calls to close a sale are common, so the management team will consider the total success rate of up to four calls. Bert has a record of closing on the first call 70% of the time, with the probability of a sale dropping 10% with each successive call. Riley has a record of closing on the first call 56% of the time, with the probability of a sale dropping 5% with each successive call. If Bert and Riley make their sale on the fourth call to any given client (which is dependent on prior events), what is the probability of a sale?
Based on their results, whom should management let go and whom should they keep?
The table below is constructed to help compute the probabilities dependent on one another for making a sale.
Data from Excel | 1st P | 2nd P | 3rd P | 4th P | P |
Bert | 0.7 | 0.6 | 0.5 | 0.4 | ? |
Riley | 0.56 | 0.51 | 0.46 | 0.41 | ? |
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