Ch08 - Sales Training
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Part IV
SALES FORCE COMPETENCIES Chapter 8:
Sales Training
Teachers open the door. You enter by yourself. Chinese Proverb
SHOULD IT BE CALLED TRAINING OR EDUCATION? • Learning is a relatively permanent change in behavior occurring as a result of experience. • Training is included in one’s experiences. Thus, training is part of an individual’s total learning experience.
What goes on in Sales Training?
SALES TRAINING PROCESS Assess
Planning for Training Sales Training Needs
Developing the Training Program
What Topics?
Setting
Setting Objectives
Where to Train?
Budget
Training Trainers? Methods?
Evaluating Training
Follow-Up Training
SALES TRAINING OBJECTIVES Why Train Salespeople?
Increase productivity
Create positive attitudes/improve morale
Improved customer relations
Reduce role conflict and ambiguity (turnover)
Improve efficiencies (time and territory)
Introduce new products, markets, or programs
CONVERSATIONS Sales Manager Says:
Salesperson Says:
“Do you think the customer will buy from us? What are the next steps?”
“I don’t know.”
“You pushed the buyer pretty hard.”
“I closed the deal, didn’t I?”
“I noticed that 20% of your calls were on C accounts.”
“I was in the area and they like to see me, so I call on them.”
Sales Manager Thinks: “Why did you leave without at least scheduling a follow-up call?” “It may be the last sale you get with this customer. What happened to building relationships?” “The profits from these accounts don’t even pay for the calls. You need to target better.”
Table 8-1
Cross-Tabulations from Company Records
Average Order New Customers Total Customers Size per SalespersonPer Salesperson Per Salesperson
Experience Less than 2 year 2-5 years 5-10 years Over 10 years Regions Northeast Southeast Midwest Southwest West
392
21
86
593 565 470
29 5 8
145 152 139
528 520 512 421 544
6 8 18 26 21
140 161 107 111 131
Planning For Sales Training 1. 2. 3.
Assessing sales training needs Establishing specific objectives for the training program Setting a budget for the program
DETERMINING TRAINING NEEDS* Judgment of: Top Management
68%
Sales Management Training Department
73% 60%
59%
Interview With: Salespeople Customers
25%
* Percent of firms indicating they often use these assessments to determine training needs.
DETERMINING TRAINING NEEDS* Performance Measures: Sales Volume Customer Service Other Measures: Observation of Salespeople Attitude Surveys
56% 51%
38% 28%
* Percent of firms indicating they often use these assessments to determine training needs.
STEPS IN PERFORMING A TRAINING ANALYSIS 1. Interviewed key members or management to find out what changes are needed in performance of the sales force. 2. Sent an anonymous questionnaire to customers and prospects asking: What do you expect of a salesperson in this industry? How do salespeople disappoint you? Which company in this industry does the best selling job? In what ways are its salespersons better?
3. Sent a confidential questionnaire to each salesperson asking: What information do most of our salespersons need? What information do you want to learn better? What skills do most of our salespersons need to improve?
STEPS IN PERFORMING A TRAINING ANALYSIS 1. Did field audits (making sales calls) with 20% of the sales force? 2. Interviewed sales supervisors. 3. Discussed and agreed on training priorities with management. 4. Determined trainable topics from information gathered in Steps 1-5.
How much should it cost?
Table 8-2
Average Cost and Training Period for Sales Trainees Consumer
$5,354 $9,893
Industrial Service
Consumer Industrial Service
$9,060
3.40 Months
3.80 Months 3.80 Months
Table 8-3
Average Cost of Training for Veteran Salespeople Median Spending
$6,000 $5,36 5
$5,000 $4,000
$3,94 7
$3,75 2
$4,82 4
$3,90 2
$3,000 $2,000 $1,000 $0
Under $5 $250 Million
$5-$25 Million
$25-$100 $100-$250 Over Million
Million
Company Size
Million
What do you train on?
ALLOCATING TRAINING TIME Average Product knowledge
35%
Market/Industry Information
15
Company Orientation
10
Selling Techniques
30
Other topics
10
Total
100%
INDUSTRY JARGON
“What does HCFA say?”
“DRG’s are killing us.”
“Is this level II in the POL regs?”
“The LTC market’s future looks good.”
“The HME industry is changing rapidly.”
How about:
Reflotrons
Spirometry Holters Oxygen Concentrators Thoracic Catheter
Where do you train? 1. 2.
Centralized versus Decentralized Field Training
ON-THE-JOB SALES TRAINING
80% of a new field salesperson’s training should be focused on developing customer profiles, digging out account survey data, and building working relationships in the field.
15% of time can then be invested in learning about how your product or service is used by existing customers. The field is the place to gain product knowledge, not from an engineer or home office instructor.
ON-THE-JOB SALES TRAINING
Only 5% of a new field salesperson’s time, then, should be spent on developing selling skills.
Again, the place to do this is face-to-face with real customers: – –
setting and testing real precall objectives asking for real opportunities to do business.
Understanding what has to be done to build selling skills can be mastered in 15 minutes. Doing it takes years of actual, not simulated practice.
Training Media
Table 8-4
Media Used in Sales Training Classroom with Instructor
77%
54%
Workbooks/Manuals
44%
Role Plays CD-ROM
39%
34%
Audiocassettes 32%
Internet
EVALUATING SALES TRAINING Level of Evaluatio n:
Reactions: “Are trainees satisfied?”
What to Measure:
Learning: “Did the training have its intended effect?”
Perception s of training Course evaluation Instructor evaluation Knowledge of course content
How to Measure:
When to Measure:
Survey Interview
At the completion of training
Exams Selfassessmen t Interview
At the completion of training and at points in the future
EVALUATING SALES TRAINING Level of Evaluatio n:
What to Measure:
Behavior:
“Are the salespeopl e on the job using their knowledge and skills on the job?”
Skills Job performanc e Absenteeis m Turnover
How to Measure:
Performanc e indicators Observatio n Managerial assessmen t Selfassessmen t
When to Measure:
Over the first year after training
EVALUATING SALES TRAINING Level of Evaluatio n:
Results: “What effect does training have on the company?”
What to Measure:
Job satisfaction Customer satisfaction Sales Profits ROI
How to Measure:
Survey Experiment s Managerial assessmen t
When to Measure:
A year after the training
EVALUATING TRAINING EFFECTIVENESS* Reactions:
86%
Trainees Supervisors
68%
Learning: Performance Pre-vs. Post-Training
63% 31%
Behaviors: Supervisor’s Appraisal Customer Appraisal
Results:
64% 41%
40%
Bottom Line *Percent of firms indicating they often use these evaluations to measure training results.
Table 8-5
Sales Training Evaluation Practices
Measure Rank Trainee Feedback
Criteria Type
Importance
Reaction
1
Supervisory Appraisal Behavior
2
Self-Appraisal
3
Behavior
Bottom-Line Measures Results
4
Customer Appraisal
5
Behavior
BUILDING A SALES TRAINING PROGRAM
Treat all employees as potential career employees.
Require regular re-training.
Spend time and money generously.
Salespeople and sales managers must take the lead in developing what goes into the program.
In times of crisis, increase, rather than decrease, the training program.
SALES FORCE COMPETENCIES Chapter 8:
Sales Training
Teachers open the door. You enter by yourself. Chinese Proverb
SHOULD IT BE CALLED TRAINING OR EDUCATION? • Learning is a relatively permanent change in behavior occurring as a result of experience. • Training is included in one’s experiences. Thus, training is part of an individual’s total learning experience.
What goes on in Sales Training?
SALES TRAINING PROCESS Assess
Planning for Training Sales Training Needs
Developing the Training Program
What Topics?
Setting
Setting Objectives
Where to Train?
Budget
Training Trainers? Methods?
Evaluating Training
Follow-Up Training
SALES TRAINING OBJECTIVES Why Train Salespeople?
Increase productivity
Create positive attitudes/improve morale
Improved customer relations
Reduce role conflict and ambiguity (turnover)
Improve efficiencies (time and territory)
Introduce new products, markets, or programs
CONVERSATIONS Sales Manager Says:
Salesperson Says:
“Do you think the customer will buy from us? What are the next steps?”
“I don’t know.”
“You pushed the buyer pretty hard.”
“I closed the deal, didn’t I?”
“I noticed that 20% of your calls were on C accounts.”
“I was in the area and they like to see me, so I call on them.”
Sales Manager Thinks: “Why did you leave without at least scheduling a follow-up call?” “It may be the last sale you get with this customer. What happened to building relationships?” “The profits from these accounts don’t even pay for the calls. You need to target better.”
Table 8-1
Cross-Tabulations from Company Records
Average Order New Customers Total Customers Size per SalespersonPer Salesperson Per Salesperson
Experience Less than 2 year 2-5 years 5-10 years Over 10 years Regions Northeast Southeast Midwest Southwest West
392
21
86
593 565 470
29 5 8
145 152 139
528 520 512 421 544
6 8 18 26 21
140 161 107 111 131
Planning For Sales Training 1. 2. 3.
Assessing sales training needs Establishing specific objectives for the training program Setting a budget for the program
DETERMINING TRAINING NEEDS* Judgment of: Top Management
68%
Sales Management Training Department
73% 60%
59%
Interview With: Salespeople Customers
25%
* Percent of firms indicating they often use these assessments to determine training needs.
DETERMINING TRAINING NEEDS* Performance Measures: Sales Volume Customer Service Other Measures: Observation of Salespeople Attitude Surveys
56% 51%
38% 28%
* Percent of firms indicating they often use these assessments to determine training needs.
STEPS IN PERFORMING A TRAINING ANALYSIS 1. Interviewed key members or management to find out what changes are needed in performance of the sales force. 2. Sent an anonymous questionnaire to customers and prospects asking: What do you expect of a salesperson in this industry? How do salespeople disappoint you? Which company in this industry does the best selling job? In what ways are its salespersons better?
3. Sent a confidential questionnaire to each salesperson asking: What information do most of our salespersons need? What information do you want to learn better? What skills do most of our salespersons need to improve?
STEPS IN PERFORMING A TRAINING ANALYSIS 1. Did field audits (making sales calls) with 20% of the sales force? 2. Interviewed sales supervisors. 3. Discussed and agreed on training priorities with management. 4. Determined trainable topics from information gathered in Steps 1-5.
How much should it cost?
Table 8-2
Average Cost and Training Period for Sales Trainees Consumer
$5,354 $9,893
Industrial Service
Consumer Industrial Service
$9,060
3.40 Months
3.80 Months 3.80 Months
Table 8-3
Average Cost of Training for Veteran Salespeople Median Spending
$6,000 $5,36 5
$5,000 $4,000
$3,94 7
$3,75 2
$4,82 4
$3,90 2
$3,000 $2,000 $1,000 $0
Under $5 $250 Million
$5-$25 Million
$25-$100 $100-$250 Over Million
Million
Company Size
Million
What do you train on?
ALLOCATING TRAINING TIME Average Product knowledge
35%
Market/Industry Information
15
Company Orientation
10
Selling Techniques
30
Other topics
10
Total
100%
INDUSTRY JARGON
“What does HCFA say?”
“DRG’s are killing us.”
“Is this level II in the POL regs?”
“The LTC market’s future looks good.”
“The HME industry is changing rapidly.”
How about:
Reflotrons
Spirometry Holters Oxygen Concentrators Thoracic Catheter
Where do you train? 1. 2.
Centralized versus Decentralized Field Training
ON-THE-JOB SALES TRAINING
80% of a new field salesperson’s training should be focused on developing customer profiles, digging out account survey data, and building working relationships in the field.
15% of time can then be invested in learning about how your product or service is used by existing customers. The field is the place to gain product knowledge, not from an engineer or home office instructor.
ON-THE-JOB SALES TRAINING
Only 5% of a new field salesperson’s time, then, should be spent on developing selling skills.
Again, the place to do this is face-to-face with real customers: – –
setting and testing real precall objectives asking for real opportunities to do business.
Understanding what has to be done to build selling skills can be mastered in 15 minutes. Doing it takes years of actual, not simulated practice.
Training Media
Table 8-4
Media Used in Sales Training Classroom with Instructor
77%
54%
Workbooks/Manuals
44%
Role Plays CD-ROM
39%
34%
Audiocassettes 32%
Internet
EVALUATING SALES TRAINING Level of Evaluatio n:
Reactions: “Are trainees satisfied?”
What to Measure:
Learning: “Did the training have its intended effect?”
Perception s of training Course evaluation Instructor evaluation Knowledge of course content
How to Measure:
When to Measure:
Survey Interview
At the completion of training
Exams Selfassessmen t Interview
At the completion of training and at points in the future
EVALUATING SALES TRAINING Level of Evaluatio n:
What to Measure:
Behavior:
“Are the salespeopl e on the job using their knowledge and skills on the job?”
Skills Job performanc e Absenteeis m Turnover
How to Measure:
Performanc e indicators Observatio n Managerial assessmen t Selfassessmen t
When to Measure:
Over the first year after training
EVALUATING SALES TRAINING Level of Evaluatio n:
Results: “What effect does training have on the company?”
What to Measure:
Job satisfaction Customer satisfaction Sales Profits ROI
How to Measure:
Survey Experiment s Managerial assessmen t
When to Measure:
A year after the training
EVALUATING TRAINING EFFECTIVENESS* Reactions:
86%
Trainees Supervisors
68%
Learning: Performance Pre-vs. Post-Training
63% 31%
Behaviors: Supervisor’s Appraisal Customer Appraisal
Results:
64% 41%
40%
Bottom Line *Percent of firms indicating they often use these evaluations to measure training results.
Table 8-5
Sales Training Evaluation Practices
Measure Rank Trainee Feedback
Criteria Type
Importance
Reaction
1
Supervisory Appraisal Behavior
2
Self-Appraisal
3
Behavior
Bottom-Line Measures Results
4
Customer Appraisal
5
Behavior
BUILDING A SALES TRAINING PROGRAM
Treat all employees as potential career employees.
Require regular re-training.
Spend time and money generously.
Salespeople and sales managers must take the lead in developing what goes into the program.
In times of crisis, increase, rather than decrease, the training program.
