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Transcript of Sales Training
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Part IVPart IV
SALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES
Part IVPart IV
SALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES
Teachers openTeachers openthe door. the door.
You enter You enter
by yourself.by yourself.
Chinese ProverbChinese Proverb
Teachers openTeachers openthe door. the door.
You enter You enter
by yourself.by yourself.
Chinese ProverbChinese Proverb
Chapter 8:Chapter 8:
Sales TrainingSales Training
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SHOULD IT BE CALLED TRAINING OR EDUCATION?
• Learning is a relatively permanent Learning is a relatively permanent change in behavior occurring as a change in behavior occurring as a result of experience. result of experience.
• Training is included in one’s Training is included in one’s experiences. Thus, training is part of experiences. Thus, training is part of an individual’s total learning an individual’s total learning experience.experience.
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What goes on inWhat goes on inSales Training?Sales Training?
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SALES TRAINING PROCESSSALES TRAINING PROCESS
Follow-Up TrainingFollow-Up Training
Planning forPlanning forSales TrainingSales Training
Planning forPlanning forSales TrainingSales Training
Developing theDeveloping theTraining ProgramTraining Program
Developing theDeveloping theTraining ProgramTraining Program
Evaluating TrainingEvaluating Training
What Where Training Trainers?Topics? to Train? Methods?
What Where Training Trainers?Topics? to Train? Methods?
Assess Setting Setting Training Objectives Budget Needs
Assess Setting Setting Training Objectives Budget Needs
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SALES TRAINING SALES TRAINING OBJECTIVESOBJECTIVES
Increase productivityIncrease productivity
Create positive attitudes/improve moraleCreate positive attitudes/improve morale
Improved customer relationsImproved customer relations
Reduce role conflict and ambiguity Reduce role conflict and ambiguity
(turnover)(turnover)
Improve efficiencies (time and territory)Improve efficiencies (time and territory)
Introduce new products, markets, or Introduce new products, markets, or
programsprograms
Increase productivityIncrease productivity
Create positive attitudes/improve moraleCreate positive attitudes/improve morale
Improved customer relationsImproved customer relations
Reduce role conflict and ambiguity Reduce role conflict and ambiguity
(turnover)(turnover)
Improve efficiencies (time and territory)Improve efficiencies (time and territory)
Introduce new products, markets, or Introduce new products, markets, or
programsprograms
Why Train Salespeople?Why Train Salespeople?
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Experience Less than 2 year 392 21 86 2-5 years 593 29 145 5-10 years 565 5 152Over 10 years 470 8 139Regions Northeast 528 6 140 Southeast 520 8 161 Midwest 512 18 107 Southwest 421 26 111 West 544 21 131
Table 8-1Table 8-1 Cross-Tabulations from Company Cross-Tabulations from Company RecordsRecords
Average OrderAverage OrderSize per SalespersonSize per Salesperson
New CustomersNew CustomersPer SalespersonPer Salesperson
Total CustomersTotal CustomersPer SalespersonPer Salesperson
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Planning For Sales Planning For Sales TrainingTraining
1.1. Assessing sales training needsAssessing sales training needs2.2. Establishing specific objectives for the Establishing specific objectives for the
training programtraining program3.3. Setting a budget for the programSetting a budget for the program
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Judgment of:Judgment of:
Top ManagementTop Management
Sales ManagementSales ManagementTraining Training
DepartmentDepartment
Interview With:Interview With:
SalespeopleSalespeople
CustomersCustomers
Judgment of:Judgment of:
Top ManagementTop Management
Sales ManagementSales ManagementTraining Training
DepartmentDepartment
Interview With:Interview With:
SalespeopleSalespeople
CustomersCustomers
68%68%
73%73%
60%60%
59%59%
25%25%
DETERMINING TRAINING DETERMINING TRAINING NEEDS*NEEDS*
* Percent of firms indicating they often use these assessments to determine training needs.* Percent of firms indicating they often use these assessments to determine training needs.
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1.1. Interviewed key members or management Interviewed key members or management to find out what changes are needed in to find out what changes are needed in performance of the sales force.performance of the sales force.
2.2. Sent an anonymous questionnaire to Sent an anonymous questionnaire to customers and prospects asking:customers and prospects asking: What do you expect of a salesperson in this industry?What do you expect of a salesperson in this industry? How do salespeople disappoint you?How do salespeople disappoint you? Which company in this industry does the best selling job?Which company in this industry does the best selling job? In what ways are its salespersons better?In what ways are its salespersons better?
3.3. Sent a confidential questionnaire to each Sent a confidential questionnaire to each salesperson asking:salesperson asking: What information do most of our salespersons need?What information do most of our salespersons need? What information do you want to learn better?What information do you want to learn better? What skills do most of our salespersons need to improve?What skills do most of our salespersons need to improve?
STEPS IN PERFORMING A TRAINING STEPS IN PERFORMING A TRAINING ANALYSISANALYSIS
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4.4. Did field audits (making sales calls) Did field audits (making sales calls) with 20% of the sales force?with 20% of the sales force?
5.5. Interviewed sales supervisors.Interviewed sales supervisors.
6.6. Discussed and agreed on training Discussed and agreed on training priorities with management.priorities with management.
7.7. Determined trainable topics from Determined trainable topics from information gathered in Steps 1-5. information gathered in Steps 1-5.
STEPS IN PERFORMING A STEPS IN PERFORMING A TRAINING ANALYSISTRAINING ANALYSIS
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How much should it How much should it cost?cost?
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Table 8-2Table 8-2 Average Cost and Training Period Average Cost and Training Period for Sales Traineesfor Sales Trainees
ConsumerConsumer
IndustrialIndustrial
ServiceService
ConsumerConsumer
IndustrialIndustrial
ServiceService
$5,354$5,354
$9,893$9,893
$9,060$9,060
3.40 3.40 MonthsMonths 3.803.80
MonthsMonths
3.803.80MonthsMonths
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Table 8-3Table 8-3
Average Cost of Training for Veteran Average Cost of Training for Veteran SalespeopleSalespeople
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Under $5 $5-$25 $25-$100 $100-$250 Over $250 Million Million Million Million Million
Med
ian
Sp
en
din
gM
ed
ian
Sp
en
din
g
Company SizeCompany Size
$3,752
$3,947
$3,902
$5,365
$4,824
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What do you train on?What do you train on?
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ALLOCATING TRAINING ALLOCATING TRAINING TIMETIME
AverageAverage
Product knowledgeProduct knowledge 35% 35%
Market/Industry InformationMarket/Industry Information 15 15
Company OrientationCompany Orientation 10 10
Selling TechniquesSelling Techniques 30 30
Other topicsOther topics 1010
TotalTotal 100%100%
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““What does HCFA say?”What does HCFA say?” ““DRG’s are killing us.”DRG’s are killing us.” ““Is this level II in the POL regs?”Is this level II in the POL regs?” ““The LTC market’s future looks good.”The LTC market’s future looks good.” ““The HME industry is changing rapidly.”The HME industry is changing rapidly.” How about:How about: ReflotronsReflotrons
SpirometrySpirometry
HoltersHolters
Oxygen ConcentratorsOxygen Concentrators
Thoracic CatheterThoracic Catheter
INDUSTRY JARGONINDUSTRY JARGON
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Where do you train?Where do you train?
1.1. Centralized versus DecentralizedCentralized versus Decentralized
2.2. Field TrainingField Training
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80%80% of a new field salesperson’s training should of a new field salesperson’s training should
be focused on developing customer be focused on developing customer profilesprofiles, ,
digging out account digging out account surveysurvey data, and building data, and building
working working relationshipsrelationships in the field. in the field.
15%15% of time can then be invested in of time can then be invested in learninglearning
about how your product or service is used by about how your product or service is used by
existing customers. The field is the place to existing customers. The field is the place to
gain gain productproduct knowledgeknowledge, not from an , not from an
engineer or home office instructor.engineer or home office instructor.
ON-THE-JOB SALES ON-THE-JOB SALES TRAININGTRAINING
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Only Only 5%5% of a new field salesperson’s time, then, of a new field salesperson’s time, then,
should be spent on developing should be spent on developing selling skillsselling skills. .
Again, the place to do this is face-to-face with Again, the place to do this is face-to-face with
real customers: real customers: – setting and testing real precall objectives setting and testing real precall objectives – asking for real opportunities to do business. asking for real opportunities to do business.
Understanding what has to be done to build Understanding what has to be done to build
selling skills can be mastered in 15 minutes. selling skills can be mastered in 15 minutes.
Doing it takes Doing it takes years of actualyears of actual, not simulated , not simulated
practice.practice.
ON-THE-JOB SALES ON-THE-JOB SALES TRAININGTRAINING
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Training MediaTraining Media
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Table 8-4Table 8-4
Media Used in Sales TrainingMedia Used in Sales Training
77%77%Classroom with Classroom with
InstructorInstructor
Workbooks/ManualsWorkbooks/Manuals
Role PlaysRole Plays
CD-ROMCD-ROM
AudiocassettesAudiocassettes
InternetInternet
44%44%
34%34%
32%32%
39%39%
54%54%
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EVALUATING SALES EVALUATING SALES TRAININGTRAINING
Level of Level of EvaluatioEvaluatio
n:n:
What toWhat toMeasure:Measure:
How to How to Measure:Measure:
When toWhen toMeasure:Measure:
Reactions:Reactions:
“Are “Are trainees trainees satisfied?”satisfied?”
PerceptionPerceptionssof trainingof training
Course Course evaluationevaluation
Instructor Instructor evaluationevaluation
SurveySurvey InterviewInterview
At the At the completion completion of trainingof training
Learning:Learning:
“Did the “Did the training training have its have its intended intended effect?”effect?”
Knowledge Knowledge of course of course contentcontent
ExamsExams Self-Self-
assessmenassessmentt
InterviewInterview
At the At the completion completion of training of training and at and at points in points in the futurethe future
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Level of Level of EvaluatioEvaluatio
n:n:
What toWhat toMeasure:Measure:
How to How to Measure:Measure:
When toWhen toMeasure:Measure:
Behavior:Behavior:
“Are the “Are the salespeoplsalespeople on the e on the job using job using their their knowledge knowledge and skills and skills on the on the job?”job?”
SkillsSkills Job Job
performancperformancee
AbsenteeisAbsenteeismm
TurnoverTurnover
PerformancPerformance e indicatorsindicators
ObservatioObservationn
Managerial Managerial assessmenassessmentt
Self-Self-assessmenassessmentt
Over the Over the first year first year after after trainingtraining
EVALUATING SALES EVALUATING SALES TRAININGTRAINING
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Level of Level of EvaluatioEvaluatio
n:n:
What toWhat toMeasure:Measure:
How to How to Measure:Measure:
When toWhen toMeasure:Measure:
Results:Results:
“What “What effect does effect does training training have on have on the the company?”company?”
Job Job satisfactionsatisfaction
Customer Customer satisfactionsatisfaction
SalesSales ProfitsProfits ROIROI
SurveySurvey ExperimentExperiment
ss Managerial Managerial
assessmenassessmentt
A year A year after the after the trainingtraining
EVALUATING SALES EVALUATING SALES TRAININGTRAINING
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Reactions:Trainees
Supervisors
Learning:Performance
Pre-vs. Post-Training
Behaviors:Supervisor’s Appraisal
Customer Appraisal
Results:Bottom Line
Reactions:Trainees
Supervisors
Learning:Performance
Pre-vs. Post-Training
Behaviors:Supervisor’s Appraisal
Customer Appraisal
Results:Bottom Line
*Percent of firms indicating they often use these evaluations to measure training *Percent of firms indicating they often use these evaluations to measure training results.results.
EVALUATING TRAINING EVALUATING TRAINING EFFECTIVENESS*EFFECTIVENESS*
86%86%
68%68%
63%63%
31%31%
64%64%
41%41%
40%40%
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Table 8-5Table 8-5
Sales Training Evaluation Sales Training Evaluation PracticesPractices
MeasureMeasure Criteria TypeCriteria Type Importance Importance RankRank
Trainee FeedbackTrainee Feedback ReactionReaction 11
Supervisory AppraisalSupervisory Appraisal BehaviorBehavior 22
Self-AppraisalSelf-Appraisal BehaviorBehavior 33
Bottom-Line MeasuresBottom-Line Measures ResultsResults 44
Customer AppraisalCustomer Appraisal BehaviorBehavior 55
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Treat all employees as potential career Treat all employees as potential career employees.employees.
Require regular re-training.Require regular re-training.
Spend time and money generously.Spend time and money generously.
Salespeople and sales managers must Salespeople and sales managers must take the lead in developing what goes take the lead in developing what goes into the program.into the program.
In times of crisis, increase, rather than In times of crisis, increase, rather than decrease, the training program.decrease, the training program.
Treat all employees as potential career Treat all employees as potential career employees.employees.
Require regular re-training.Require regular re-training.
Spend time and money generously.Spend time and money generously.
Salespeople and sales managers must Salespeople and sales managers must take the lead in developing what goes take the lead in developing what goes into the program.into the program.
In times of crisis, increase, rather than In times of crisis, increase, rather than decrease, the training program.decrease, the training program.
BUILDING A SALES BUILDING A SALES TRAINING PROGRAMTRAINING PROGRAM