TEAM SALES PERFORMANCE -FOR SUCCESS .ppt

SALES TRAINING FOR THE TEAM

1. Part IVPart IV
SALES FORCE COMPETENCIESSALES FORCE COMPETENCIES
Teachers openTeachers open
the door. the door.

You enter You enter
by yourself.by yourself.
Chinese ProverbChinese Proverb
Chapter 8:Chapter 8:
Sales TrainingSales Training

2. SHOULD IT BE CALLED
TRAINING OR EDUCATION?
•Learning is a relatively permanent change Learning is a relatively permanent change
in behavior occurring as a result of in behavior occurring as a result of
experience. experience.
•Training is included in one’s experiences. Training is included in one’s experiences.
Thus, training is part of an individual’s Thus, training is part of an individual’s
total learning experience.total learning experience.

3. What goes on inWhat goes on in
Sales Training?Sales Training?

4. SALES TRAINING PROCESSSALES TRAINING PROCESS
Follow-Up Training
Planning forPlanning for
Sales TrainingSales Training
Developing theDeveloping the
Training ProgramTraining Program
Evaluating Training
What WhereTraining Trainers?
Topics? to Train?Methods?
Assess Setting Setting
Training Objectives Budget
Needs

5. SALES TRAINING OBJECTIVESSALES TRAINING OBJECTIVES

Increase productivityIncrease productivity

Create positive attitudes/improve moraleCreate positive attitudes/improve morale

Improved customer relationsImproved customer relations

Reduce role conflict and ambiguity (turnover)Reduce role conflict and ambiguity (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?

6. Experience
Less than 2 year 392 21 86
2-5 years 593 29 145
5-10 years 565 5 152
Over 10 years 470 8 139
Regions
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 RecordsCross-Tabulations from Company Records
Average OrderAverage Order
Size per SalespersonSize per Salesperson
New CustomersNew Customers
Per SalespersonPer Salesperson
Total CustomersTotal Customers
Per SalespersonPer Salesperson

7. Planning For Sales TrainingPlanning For Sales Training
1.1.Assessing sales training needsAssessing sales training needs
2.2.Establishing specific objectives for the Establishing specific objectives for the
training programtraining program
3.3.Setting a budget for the programSetting a budget for the program

8. Judgment of:Judgment of:
Top ManagementTop Management
Sales ManagementSales Management
Training Training
DepartmentDepartment
Interview With:Interview With:
SalespeopleSalespeople
CustomersCustomers
68%68%
73%73%
60%60%
59%59%
25%25%
DETERMINING TRAINING NEEDS*DETERMINING TRAINING 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.

9. 1.1.Interviewed key members or management to Interviewed key members or management to
find out what changes are needed in find out what changes are needed in
performance of the sales force.performance of the sales force.
2.2.Sent an anonymous questionnaire to customers Sent an anonymous questionnaire to customers
and prospects asking: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 ANALYSISSTEPS IN PERFORMING A TRAINING ANALYSIS

10. 4.4.Did field audits (making sales calls) with Did field audits (making sales calls) with
20% of the sales force?20% of the sales force?
5.5.Interviewed sales supervisors.Interviewed sales supervisors.
6.6.Discussed and agreed on training priorities Discussed and agreed on training priorities
with management.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

11. How much should it cost?How much should it cost?

12. 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 Months3.40 Months
3.803.80
MonthsMonths
3.803.80
MonthsMonths

13. Table 8-3Table 8-3
Average Cost of Training for Veteran SalespeopleAverage Cost of Training for Veteran Salespeople
$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
M
e
d
i
a
n

S
p
e
n
d
i
n
g
M
e
d
i
a
n

S
p
e
n
d
i
n
g
Company SizeCompany Size
$3,752
$3,947$3,902
$5,365
$4,824

14. What do you train on?What do you train on?

15. ALLOCATING TRAINING TIMEALLOCATING TRAINING TIME
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%

16. Where do you train?Where do you train?
1.1.Centralized versus DecentralizedCentralized versus Decentralized
2.2. Field TrainingField Training

17. 
80%80% of a new field salesperson’s training should be of a new field salesperson’s training should be
focused on developing customer focused on developing customer profilesprofiles, digging , digging
out account out account surveysurvey data, and building working data, and building 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 about
how your product or service is used by existing how your product or service is used by existing
customers. The field is the place to gain customers. The field is the place to gain productproduct
knowledgeknowledge, not from an engineer or home office , not from an engineer or home office
instructor.instructor.
ON-THE-JOB SALES TRAININGON-THE-JOB SALES TRAINING

18. 
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 real Again, the place to do this is face-to-face with real
customers: 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 selling Understanding what has to be done to build selling
skills can be mastered in 15 minutes. Doing it takes skills can be mastered in 15 minutes. Doing it takes
years of actualyears of actual, not simulated practice., not simulated practice.
ON-THE-JOB SALES TRAININGON-THE-JOB SALES TRAINING

19. Training MediaTraining Media

20. Table 8-4Table 8-4
Media Used in Sales TrainingMedia Used in Sales Training
77%77%
Classroom with InstructorClassroom with Instructor
Workbooks/ManualsWorkbooks/Manuals
Role PlaysRole Plays
CD-ROMCD-ROM
AudiocassettesAudiocassettes
InternetInternet
44%44%
34%34%
32%32%
39%39%
54%54%

21. EVALUATING SALES TRAININGEVALUATING SALES TRAINING
Level of Level of
Evaluation:Evaluation:
What toWhat to
Measure:Measure:
How to How to
Measure:Measure:
When toWhen to
Measure:Measure:

Reactions:Reactions:
“Are trainees “Are trainees
satisfied?”satisfied?”

PerceptionsPerceptions
of 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-
assessmentassessment

InterviewInterview

At the At the
completion completion
of training of training
and at points and at points
in the futurein the future

22. Level of Level of
Evaluation:Evaluation:
What toWhat to
Measure:Measure:
How to How to
Measure:Measure:
When toWhen to
Measure:Measure:

Behavior:Behavior:
“Are the “Are the
salespeople salespeople
on the job on the job
using their using their
knowledge knowledge
and skills on and skills on
the job?”the job?”

SkillsSkills

Job Job
performanceperformance

AbsenteeismAbsenteeism

TurnoverTurnover

Performance Performance
indicatorsindicators

ObservationObservation

Managerial Managerial
assessmentassessment

Self-Self-
assessmentassessment

Over the Over the
first year first year
after after
trainingtraining
EVALUATING SALES TRAININGEVALUATING SALES TRAINING

23. Level of Level of
Evaluation:Evaluation:
What toWhat to
Measure:Measure:
How to How to
Measure:Measure:
When toWhen to
Measure:Measure:

Results:Results:
“What effect “What effect
does does
training training
have on the have on the
company?”company?”

Job Job
satisfactionsatisfaction

Customer Customer
satisfactionsatisfaction

SalesSales

ProfitsProfits

ROIROI

SurveySurvey

ExperimentsExperiments

Managerial Managerial
assessmentassessment

A year after A year after
the trainingthe training
EVALUATING SALES TRAININGEVALUATING SALES TRAINING

24. 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 results.*Percent of firms indicating they often use these evaluations to measure training results.
EVALUATING TRAINING EFFECTIVENESS*EVALUATING TRAINING EFFECTIVENESS*
86%86%
68%68%
63%63%
31%31%
64%64%
41%41%
40%40%

25. Table 8-5Table 8-5
Sales Training Evaluation PracticesSales Training Evaluation Practices
MeasureMeasure Criteria TypeCriteria Type Importance RankImportance Rank
Trainee FeedbackTrainee Feedback ReactionReaction 11
Supervisory AppraisalSupervisory AppraisalBehaviorBehavior 22
Self-AppraisalSelf-Appraisal BehaviorBehavior 33
Bottom-Line MeasuresBottom-Line Measures ResultsResults 44
Customer AppraisalCustomer Appraisal BehaviorBehavior 55

26. 
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 take the Salespeople and sales managers must take the
lead in developing what goes into the program.lead in developing what goes 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 TRAINING BUILDING A SALES TRAINING
PROGRAMPROGRAM