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sales training.ppt

  1. Part IV SALES FORCE COMPETENCIES Teachers open the door.  You enter by yourself. Chinese Proverb Chapter 8: Sales Training
  2. 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.
  3. What goes on in Sales Training?
  4. SALES TRAINING PROCESS Follow-Up Training Planning for Sales Training Developing the Training Program Evaluating Training What Where Training Trainers? Topics? to Train? Methods? Assess Setting Setting Training Objectives Budget Needs
  5. SALES TRAINING OBJECTIVES  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 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 8-1 Cross-Tabulations from Company Records Average Order Size per Salesperson New Customers Per Salesperson Total Customers Per Salesperson
  7. Planning For Sales Training 1. Assessing sales training needs 2. Establishing specific objectives for the training program 3. Setting a budget for the program
  8. Judgment of: Top Management Sales Management Training Department Interview With: Salespeople Customers 68% 73% 60% 59% 25% DETERMINING TRAINING NEEDS* * Percent of firms indicating they often use these assessments to determine training needs.
  9. 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
  10. 4. Did field audits (making sales calls) with 20% of the sales force? 5. Interviewed sales supervisors. 6. Discussed and agreed on training priorities with management. 7. Determined trainable topics from information gathered in Steps 1-5. STEPS IN PERFORMING A TRAINING ANALYSIS
  11. How much should it cost?
  12. Table 8-2 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
  13. Table 8-3 Average 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 Median Spending Company Size $3,752 $3,947 $3,902 $5,365 $4,824
  14. What do you train on?
  15. ALLOCATING TRAINING TIME Average Product knowledge 35% Market/Industry Information 15 Company Orientation 10 Selling Techniques 30 Other topics 10 Total 100%
  16. Where do you train? 1. Centralized versus Decentralized 2. Field Training
  17.  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
  18.  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. ON-THE-JOB SALES TRAINING
  19. Training Media
  20. Table 8-4 Media Used in Sales Training 77% Classroom with Instructor Workbooks/Manuals Role Plays CD-ROM Audiocassettes Internet 44% 34% 32% 39% 54%
  21. EVALUATING SALES TRAINING Level of Evaluation: What to Measure: How to Measure: When to Measure:  Reactions: “Are trainees satisfied?”  Perceptions of training  Course evaluation  Instructor evaluation  Survey  Interview  At the completion of training  Learning: “Did the training have its intended effect?”  Knowledge of course content  Exams  Self- assessment  Interview  At the completion of training and at points in the future
  22. Level of Evaluation: What to Measure: How to Measure: When to Measure:  Behavior: “Are the salespeople on the job using their knowledge and skills on the job?”  Skills  Job performance  Absenteeism  Turnover  Performance indicators  Observation  Managerial assessment  Self- assessment  Over the first year after training EVALUATING SALES TRAINING
  23. Level of Evaluation: What to Measure: How to Measure: When to Measure:  Results: “What effect does training have on the company?”  Job satisfaction  Customer satisfaction  Sales  Profits  ROI  Survey  Experiments  Managerial assessment  A year after the training EVALUATING 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. EVALUATING TRAINING EFFECTIVENESS* 86% 68% 63% 31% 64% 41% 40%
  25. Table 8-5 Sales Training Evaluation Practices Measure Criteria Type Importance Rank Trainee Feedback Reaction 1 Supervisory Appraisal Behavior 2 Self-Appraisal Behavior 3 Bottom-Line Measures Results 4 Customer Appraisal Behavior 5
  26.  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. BUILDING A SALES TRAINING PROGRAM