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This chapter presents the following content: Sales training process, sales training objectives, determining training needs, steps in performing a training analysis, steps in performing a training analysis, allocating training time,...
Part IV SALES FORCE COMPETENCIES Chapter 8: Sales Training Teachers open Teachers open the door. the door. You enter You enter by yourself by yourself Chinese Proverb Chinese Proverb SALES TRAINING PROCESS Planning for Planning for Sales Training Sales Training Developing the Developing the Training Program Training Program Assess Assess Training Training Needs Needs What What Topics? Topics? Setting Setting Objectives Objectives Where Where to Train? to Train? Setting Setting Budget Budget Training Training Trainers? Trainers? Methods? Methods? Evaluating Training Evaluating Training FollowUp Training FollowUp Training SALES TRAINING OBJECTIVES Why Train Salespeople? Increase sales or profits 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: Sales Manager Thinks: “Do you think the customer will buy from us? What are the next steps?” “Why did you leave without at least “I don’t know.” scheduling a followup call?” “It may be the last sale you get with this “You pushed the buyer “I closed the deal, didn’t customer. What pretty hard.” I?” happened to building relationships?” “The profits from these accounts “I noticed that 20% of “I was in the area and your calls were on C they like to see me, so I don’t even pay for accounts.” call on them.” the calls. You need to target better.” Table 81 CrossTabulations from Company Records Average Order Size per Salesperson Experience Less than 2 year 392 25 years 510 years Over 10 years Regions Northeast Southeast Midwest Southwest West New Customers Per Salesperson 21 593 565 470 86 29 5 152 8 528 520 512 421 544 6 8 18 26 21 Total Customers Per Salesperson 145 139 140 161 107 111 131 DETERMINING TRAINING NEEDS* Judgment of: Top Management 68% Sales Management Training Department 73% 60% Interview With: Salespeople Customers 59% 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 Interviewed key members or management to find out what changes are needed in performance of the sales force 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? 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 Did field audits (making sales calls) with 20% of the sales force? Interviewed sales supervisors Discussed and agreed on training priorities with management Determined trainable topics from information gathered in Steps 15. Table 82 Average Cost and Training Period for Sales Trainees Consumer Industrial Service Consumer Industrial Service $5,354 $9,893 $9,060 3.40 Months 3.80 Months 3.80 Months Table 83 Average Cost of Training for Veteran Salespeople $6,000 Median Spending $5,365 $4,824 $5,000 $4,000 $3,752 $3,947 $3,902 $3,000 $2,000 $1,000 $0 Under $5 $5$25 $25$100 $100$250 Over $250 Million Million Million Million Million Company Size ALLOCATING TRAINING TIME Product knowledge Market/Industry Information Average 35% 15 Company Orientation Selling Techniques Other topics Total 10 30 10 100% 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 ONTHEJOB 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 ONTHEJOB 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 facetoface 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 Table 84 Media Used in Sales Training Classroom with Instructor 77% Workbooks/Manuals 54% Role Plays CDROM Audiocassettes Internet 44% 39% 34% 32% EVALUATING SALES TRAINING Level of Evaluation: Reactions: “Are trainees satisfied?” What to Measure: Learning: “Did the training have its intended effect?” Perceptions of training Course evaluation Instructor evaluation Knowledge of course content How to Measure: When to Measure: Survey Interview At the completion of training Exams Self assessment Interview At the completion of training and at points in the future EVALUATING SALES TRAINING Level of Evaluation: What to Measure: Behavior: “Are the salespeople on the job using their knowledge and skills on the job?” Skills Job performance Absenteeism How to Measure: Turnover Performance indicators Observation Managerial assessment Self assessment When to Measure: Over the first year after training EVALUATING SALES TRAINING Level of Evaluation: Results: “What effect does training have on the company?” What to Measure: Job satisfaction Customer satisfaction Sales Profits ROI How to Measure: Survey Experiments Managerial assessment When to Measure: A year after the training EVALUATING TRAINING EFFECTIVENESS* Reactions: 86% Trainees Supervisors 68% Learning: Performance Prevs. PostTraining 63% 31% Behaviors: Supervisor’s Appraisal Customer Appraisal Results: Bottom Line 64% 41% 40% *Percent of firms indicating they often use these evaluations to measure training results Table 85 Sales Training Evaluation Practices Measure Criteria Type Importance Rank Trainee Feedback Reaction Supervisory Appraisal Behavior SelfAppraisal Behavior Results Behavior BottomLine Measures Customer Appraisal EXPERIMENTAL DESIGN Notation O1 = Results before sales training X1 = Sales training O2 = Results after sales training O2 – O1 = Difference in results Experimental Group O1 X1 O2 Control Group O3 Sales Training Effect (O2 – O1) – (O4 – O3) O4 BUILDING A SALES TRAINING PROGRAM Treat all employees as potential career employees Require regular retraining 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 ... O1 = Results before? ?sales? ?training X1 =? ?Sales? ?training O2 = Results after? ?sales? ?training O2? ?–? ?O1 = Difference in results Experimental Group O1 X1 O2 Control Group O3 Sales? ?Training? ?Effect (O2? ?–? ?O1)? ?–? ?(O4? ?–? ?O3).. .SALES? ?TRAINING? ?PROCESS Planning for Planning for Sales? ?Training Sales? ?Training Developing the Developing the Training? ?Program Training? ?Program Assess Assess ? ?Training ? ?Training. .. Budget Training Training Trainers? Trainers? Methods? Methods? Evaluating? ?Training Evaluating? ?Training FollowUp? ?Training FollowUp? ?Training SALES? ?TRAINING? ?OBJECTIVES Why Train Salespeople?