Hunters and Farmers – Serving New and Existing Customers the Right Way

The Role Conflict: When One Salesperson Is Supposed to Do Everything

At ElektroTech GmbH, a mid-sized supplier, there has been ongoing conflict in sales for years: the salespeople who acquire new customers complain that after closing a deal they have to "hand off" the customer and no longer receive commission. The colleagues in inside sales – responsible for existing customers – in turn feel sidelined when "their" customers are served by field sales reps.

In short: unclear responsibilities between new customer acquisition (hunter) and existing customer management (farmer) lead to conflict. The new sales manager decides to bring clarity: he introduces the classic hunter-farmer model. One team focuses exclusively on hunting for new customers, another on maintaining and developing existing customers.

Already after one quarter, both teams report better focus and fewer frictions.

The Hunter-Farmer Concept: Specialization for Success

Defining the Roles

The hunter-farmer concept separates the tasks of new customer acquisition and existing customer management across different roles or teams:

Hunters:

• Extroverted acquirers with a hunting instinct
• Specialized in cold calling and initial conversations
• Focus on new business closings
• Success-driven and closing-oriented
• Move on to the next prospect after closing a deal

Farmers:

• Relationship-oriented account managers with a long-term focus
• Specialized in customer care and development
• Focus on cross-/upselling and customer retention
• Service-oriented and patient
• Ensure high customer satisfaction and loyalty

Why the Separation Makes Sense

The two activities require different skills and mindsets:

Organizational Models in Practice

Model 1: Functional Separation

Separate teams by function:

• Business development team: Lead generation and initial qualification
• Sales team: New customer acquisition and deal closing
• Account management team: Existing customer care and expansion
• Customer success team: Onboarding and long-term satisfaction

Model 2: Customer Segment-Based Separation

Division by customer type:

• New business team: All new customers up to 12 months after contract signing
• Growth team: Established customers with growth potential
• Retention team: Long-term established customers and ongoing care

Model 3: Hybrid Approaches

Flexible role distribution:

• 70/30 split: Employees spend 70% of their time in one role, 30% in the other
• Seasonal switching: Role changes depending on the quarter or market conditions
• Team selling: Hunters and farmers work together on accounts

The Handover Process: Smooth Handoffs

Defining Critical Handover Points

Typical handover criteria:

1. After contract signing: Customer immediately transitions to account manager
2. After go-live: Only after successful implementation
3. After trial phase: After 3–6 months of collaboration
4. At revenue threshold: Above a certain annual revenue

Structured Handover Process

The 5 steps of a successful handover:

1. Pre-handover meeting: Hunter and farmer discuss account details
2. Joint customer meeting: Personal introduction of the new contact person
3. Documentation handover: Complete account history in the CRM
4. Warm-up phase: 30 days of close collaboration between hunter and farmer
5. Feedback loop: Regular exchange on account development

Performance Measurement: KPIs for Hunters and Farmers

Hunter KPIs (New Customer Acquisition)

Farmer KPIs (Existing Customers)

Compensation Models: Creating Fair Incentives

Hunter Compensation

Structure:

• Base salary: 60–70% of total compensation
• Variable component: 30–40% based on new customer acquisition
• Commission model: Linear or progressive based on target achievement
• Additional bonuses: Special targets such as strategic accounts or new product lines

Farmer Compensation

Structure:

• Base salary: 70–80% of total compensation
• Variable component: 20–30% based on account performance
• Metrics: Mix of retention, upselling, and customer satisfaction
• Long-term incentives: Annual bonuses for account development

Implementation: From Theory to Practice

Phase 1: Assessment and Planning

1. Team analysis: Who has hunter vs. farmer qualities?
2. Customer segmentation: Which accounts need which type of care?
3. Process design: Define handover processes and responsibilities
4. KPI system: Measurable targets for both roles

Phase 2: Restructuring

1. Role assignment: Position employees according to their strengths
2. Account handovers: Reassign existing customers
3. System adjustments: Align CRM and reporting to the new structure
4. Adjust compensation: Implement new incentive structures

Phase 3: Optimization

1. Performance monitoring: Regularly track KPIs
2. Feedback collection: From employees and customers
3. Process refinement: Continuously improve workflows
4. Skills development: Specialized training for both roles

Common Challenges and Solutions

Challenge 1: Silo Mentality

• Problem: Hunters and farmers work against each other instead of together
• Solution: Shared goals, team events, cross-training

Challenge 2: Complex Handovers

• Problem: Customers feel neglected during the transition
• Solution: Structured handover processes, personal introduction

Challenge 3: Unequal Workload Perception

• Problem: One role is perceived as more important/valuable
• Solution: Fair compensation, communicate appreciation of both roles

Success Factors for the Hunter-Farmer Model

Organizational Success Factors

• Clear role boundaries: Everyone knows what they are responsible for
• Efficient handover processes: Seamless customer journey
• Integrated systems: CRM and tools support both roles
• Regular communication: Hunters and farmers exchange information

Cultural Success Factors

• Team spirit: Both roles are viewed as equally important
• Customer centricity: Customer wellbeing takes priority over internal preferences
• Continuous learning: Both teams learn from each other
• Shared success: Successes are celebrated together

Case Study: Successful Transformation

Starting Situation

A mid-sized software provider with 25 sales employees. All salespeople do everything – from cold calling to customer care. Result: stagnation in new customers and declining satisfaction among existing customers.

Implementation

1. Team split: 60% hunters (15 employees), 40% farmers (10 employees)
2. Account segmentation: Accounts categorized by potential and care requirements
3. New compensation: Performance-based incentives for both roles
4. Training: Specialized training for hunters and farmers

Results After 12 Months

• +45% more new customers through focused hunters
• +25% higher customer retention through better care
• +35% upselling revenue from existing customers
• +20% employee satisfaction through clearer roles

Conclusion: Specialization as a Success Factor

The hunter-farmer model is more than just an organizational change – it is a strategic realignment for sustainable sales success. Specialization on strengths creates synergies that increase overall success disproportionately.

The key lies in balance: both roles are equally important for company success. Hunters bring fresh business, farmers ensure sustainable profitability. Only together do they create a powerful sales organization.

Ready to optimize your sales structure? Our experts will help you design and successfully implement the optimal hunter-farmer model for your company.