Sales Training Techniques

7/29/2019 Sales Training Techniques

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Sales Training: Objectives,Sales Training: Objectives,

Techniques, and EvaluationTechniques, and Evaluation


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Training InvestmentTraining Investment

Mark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006


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Sales Training IssuesSales Training Issues

Who should be trained?Who should be trained? What should be the primary emphasis inWhat should be the primary emphasis in

the training program?the training program?

How should the training process beHow should the training process bestructured?structured?

on-the-job training and experience?on-the-job training and experience?

formal and more consistent centralizedformal and more consistent centralized

program?program? web-based?web-based?

instructor-based?instructor-based?


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Sales Training ObjectivesSales Training Objectives

Increase productivityIncrease productivity

Improve moraleImprove morale

Lower turnoverLower turnover Improve customer relationsImprove customer relations

Improve selling skillsImprove selling skills


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Obstacles to IntroducingObstacles to Introducing

TrainingTraining Top management not dedicated to salesTop management not dedicated to sales

trainingtraining

Lack of buy-in from frontline salesLack of buy-in from frontline sales

managers and salespeoplemanagers and salespeople Salespeoples lack of understanding ofSalespeoples lack of understanding of

what training is supposed to accomplishwhat training is supposed to accomplish

Salespeoples lack of understandingSalespeoples lack of understandingregarding application of training toregarding application of training to

everyday taskseveryday tasks


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Well-Designed TrainingWell-Designed Training

ProgramProgram Analyzes sales force needsAnalyzes sales force needs

Sets specific, realistic, and measurable trainingSets specific, realistic, and measurable training

objectivesobjectives

Allows for adequate development and timely,Allows for adequate development and timely,effective implementationeffective implementation

Subjects itself to evaluation and reviewSubjects itself to evaluation and review

What do we want to measure?What do we want to measure?

When do we want to measure?When do we want to measure?

How do we do it? What measuring tools areHow do we do it? What measuring tools are

available?available?

Modifies to achieve greater effectivenessModifies to achieve greater effectiveness


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Mark W. Johnston and Gary W.Marshall, Sales Force Management,McGraw Hill, 2006

Well-Well-

DesignedDesigned

TrainingTraining

ProgramProgram


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Recent Shifts in Training NewRecent Shifts in Training New

Sales RecruitsSales Recruits Companies with less than $5 million in annual salesCompanies with less than $5 million in annual sales

are spending more on sales training per new hire -are spending more on sales training per new hire -

$5,500 worth of training per salesperson.$5,500 worth of training per salesperson.

Training in smaller companies has increased fromTraining in smaller companies has increased from3.3 months to 4.4 months.3.3 months to 4.4 months.

Smaller companies are placing more emphasis onSmaller companies are placing more emphasis on

training than several years ago.training than several years ago.

Companies are spending time and money onCompanies are spending time and money ontrainingtraining experiencedexperienced salespeoplesalespeople

Companies with more than $5 million in annualCompanies with more than $5 million in annual

sales, are spending less money on trainingsales, are spending less money on training

Source: Christen P. Heide, Dartnells 30th Sales Force

Compensation Survey: (Chicago: Dartnell Corp., 1999)


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Training Costs and DurationTraining Costs and Duration



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Recent Shifts in TrainingRecent Shifts in Training

Experienced Sales PersonnelExperienced Sales Personnel Experienced sales reps are given, onExperienced sales reps are given, on

average, 32.5 hours of ongoing trainingaverage, 32.5 hours of ongoing training

per year at a cost of $4,032 per repper year at a cost of $4,032 per rep

Continuing increasing amounts of trainingContinuing increasing amounts of trainingreflects a commitment to provide ongoingreflects a commitment to provide ongoing

learning opportunities for seniorlearning opportunities for senior

salespeoplesalespeople

Companies are spending an increasingCompanies are spending an increasing

amount of time on product training andamount of time on product training and

less on training in selling skillsless on training in selling skills

Source: Christen P. Heide, Dartnells 30th Sales Force

Compensation Survey: (Chicago: Dartnell Corp., 1999)


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Training Costs and DurationTraining Costs and Duration


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Training Methods - HowTraining Methods - How



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Training Methods - WhereTraining Methods - Where



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Sales Training TopicsSales Training Topics

Product or service knowledgeProduct or service knowledge

Market/Industry orientationMarket/Industry orientation

Company orientationCompany orientation

Selling skillsSelling skills

Time and territory managementTime and territory management

Legal and ethical issuesLegal and ethical issues TechnologyTechnology

Specialized topicsSpecialized topics


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Product KnowledgeProduct Knowledge

Enables a salesperson to provide prospects and customersEnables a salesperson to provide prospects and customerswith the critical information for rational decision-makingwith the critical information for rational decision-making

InvolvesInvolves

Knowing how the product is madeKnowing how the product is made

How the product is commonly used, andHow the product is commonly used, and

How it should not be used.How it should not be used.

Customers often want to know how competitive productsCustomers often want to know how competitive products

compare oncompare on

priceprice

constructionconstruction performanceperformance

compatibility with each othercompatibility with each other

Companies that produce technical products spend a greaterCompanies that produce technical products spend a greater

amount of time on product knowledgeamount of time on product knowledge


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Market/Industry OrientationMarket/Industry Orientation

TopicsTopics How a particular industry fits into the overallHow a particular industry fits into the overall

economyeconomy

Knowledge of the industry and the economyKnowledge of the industry and the economy

Economic fluctuations that affect buying behaviorEconomic fluctuations that affect buying behaviorand require adaptive selling techniquesand require adaptive selling techniques

Customers' buying policies, patterns and preferencesCustomers' buying policies, patterns and preferences

in light of competitionin light of competition

Customers' customers and what satisfies themCustomers' customers and what satisfies them Needs of both wholesalers and retailersNeeds of both wholesalers and retailers


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Company Orientation TopicsCompany Orientation Topics

Company polices that affect their sellingCompany polices that affect their sellingactivitiesactivities

How to handle customer requests for priceHow to handle customer requests for price

adjustments, product modifications, fasteradjustments, product modifications, fasterdelivery and different credit termsdelivery and different credit terms Sales manuals that cover product lineSales manuals that cover product line

information and company policesinformation and company polices

A well-prepared sales manual gives a salesA well-prepared sales manual gives a salesrepresentative quick answers to arepresentative quick answers to acustomer's questionscustomer's questions


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Time and TerritoryTime and Territory

ManagementManagementSales trainees need to learn toSales trainees need to learn to

manage time and territoriesmanage time and territories

80/20 rule applies:80/20 rule applies:

20% of the customers account for20% of the customers account for

80% of the business and80% of the business and

Require a direct proportion of time andRequire a direct proportion of time and

attentionattention


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Legal/Ethical IssuesLegal/Ethical Issues

Federal law dictates corporate action orFederal law dictates corporate action or

avoidance of action in areas of marketing,avoidance of action in areas of marketing,

sales and pricingsales and pricing

Sales personnel need to understand theSales personnel need to understand thefederal, state and local laws that constrainfederal, state and local laws that constrain

their selling activitiestheir selling activities

Statements made by salespeople carryStatements made by salespeople carryboth legal and ethical implicationsboth legal and ethical implications

Lapses in ethical conduct often lead toLapses in ethical conduct often lead to

legal problemslegal problems


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TechnologyTechnology

Notebook computersNotebook computers PresentationsPresentations

connecting to company intranet or extranetconnecting to company intranet or extranet

delivering documentation quickly and accuratelydelivering documentation quickly and accurately

Home offices eliminate the need to go to anotherHome offices eliminate the need to go to anotherofficeoffice

Salesperson can be almost totally self-sufficient withSalesperson can be almost totally self-sufficient with

high-speed network connectionhigh-speed network connection

computercomputer

printerprinter

cell phonecell phone

Effective computer use affords sales personnel moreEffective computer use affords sales personnel more

face-to-face customer contact timeface-to-face customer contact time


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Specialized Training TopicsSpecialized Training Topics

Overcoming price objectionsOvercoming price objections

Holding the line on priceHolding the line on price

Working the trade showWorking the trade show Problem solvingProblem solving


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Keys for Effective OJTKeys for Effective OJT

TeamingTeaming

- Bringing together people with different- Bringing together people with different

skills to address issues.skills to address issues.

MeetingsMeetings - Setting aside times when employees at- Setting aside times when employees at

different levels and positions can get together anddifferent levels and positions can get together and

share thoughts on various topics.share thoughts on various topics.

Customer interactionCustomer interaction - Including customer feedback- Including customer feedback

as part of the learning process.as part of the learning process.

MentoringMentoring - Providing an informal mechanism for new- Providing an informal mechanism for new

salespeople to interact and learn from moresalespeople to interact and learn from moreexperienced ones.experienced ones.

Peer-to-peer communicationPeer-to-peer communication - Creating opportunities- Creating opportunities

for salespeople to interact together for mutualfor salespeople to interact together for mutual

learning.learning.Source: The Education Development Center (www.edc.org)


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Classroom TrainingClassroom Training

Trainee receives standard briefings inTrainee receives standard briefings in product knowledgeproduct knowledge

company policescompany polices

customer and market characteristicscustomer and market characteristics selling skillsselling skills

Formal training sessions avoid wastingFormal training sessions avoid wasting

executive timeexecutive time

Classroom sessions permit use of audiovisualClassroom sessions permit use of audiovisual

materials and technical resourcesmaterials and technical resources

Interaction between sales trainees buildsInteraction between sales trainees builds

camaraderiecamaraderie


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Measuring the Costs andMeasuring the Costs and

BenefitsBenefitsSales training consumes substantialSales training consumes substantial

time, budget and support resourcestime, budget and support resources

Relationship between sales trainingRelationship between sales trainingand revenue is difficult to measureand revenue is difficult to measure


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Broad BenefitsBroad Benefits

Improved moraleImproved morale

Lower turnoverLower turnover

Higher customer satisfactionHigher customer satisfaction

Managements commitment to quality andManagements commitment to quality andcontinuous improvementcontinuous improvement

Measuring changes in skills, reactions andMeasuring changes in skills, reactions and

learning assists both new and experiencedlearning assists both new and experiencedsales personnelsales personnel


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Training EvaluationTraining Evaluation



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Training EvaluationTraining Evaluation



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Key TermsKey Terms

sales training analysissales training analysis

on-the-job training (OJT)on-the-job training (OJT)

role-playingrole-playing electronic training methodselectronic training methods

sales training costssales training costs

Sales Training Techniques

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