Part IV SALES FORCE COMPETENCIES Teachers open the door. You enter  You enter by yourself. Chinese Proverb Teachers open the door. You enter  You enter by yourself. Chinese Proverb Chapter 8: Sales Training Chapter 8: Sales Training

SALES TRAINING PROCESS Follow-Up Training Planning for Sales Training Planning for Sales Training Developing the Training Program Developing the Training Program Evaluating Training What WhereTraining Trainers? Topics? to Train?Methods? What WhereTraining Trainers? Topics? to Train?Methods? Assess Setting Setting TrainingObjectives Budget Needs Assess Setting Setting TrainingObjectives Budget Needs

SALES TRAINING OBJECTIVES  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  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 Why Train Salespeople?

CONVERSATIONS Sales Manager Says: Salesperson Says: Sales Manager Thinks: “Do you think the customer will buy from us? What are the next steps?” “I don’t know.” “Why did you leave without at least scheduling a follow-up call?” “You pushed the buyer pretty hard.” “I closed the deal, didn’t I?” “It may be the last sale you get with this customer. What happened to building relationships?” “I noticed that 20% of your calls were on C accounts.” “I was in the area and they like to see me, so I call on them.” “The profits from these accounts don’t even pay for the calls. You need to target better.”

Experience Less than 2 year years years Over 10 years Regions Northeast Southeast Midwest Southwest West Table 8-1 Cross-Tabulations from Company Records Average Order Size per Salesperson New Customers Per Salesperson Total Customers Per Salesperson

Judgment of: Top Management Sales Management Training Department Interview With: SalespeopleCustomers Judgment of: Top Management Sales Management Training Department Interview With: SalespeopleCustomers 68% 73% 60% 59% 25% DETERMINING TRAINING NEEDS* * Percent of firms indicating they often use these assessments to determine training needs.

Performance Measures: Sales Volume Customer Service Other Measures: Observation of Salespeople Attitude Surveys Performance Measures: Sales Volume Customer Service Other Measures: Observation of Salespeople Attitude Surveys 56% 51% 38% 28% DETERMINING TRAINING NEEDS* * Percent of firms indicating they often use these assessments to determine training needs.

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? 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

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 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

Table 8-2 Average Cost and Training Period for Sales Trainees ConsumerIndustrialService ConsumerIndustrialService $5,354 $9,893 $9, Months 3.80 Months

Table 8-3 Average Cost of Training for Veteran Salespeople 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

ALLOCATING TRAINING TIME Average Product knowledge 35% Market/Industry Information 15 Company Orientation 10 Selling Techniques 30 Other topics 10 Total100% Average Product knowledge 35% Market/Industry Information 15 Company Orientation 10 Selling Techniques 30 Other topics 10 Total100%

“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: – Reflotrons – Spirometry – Holters “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: – Reflotrons – Spirometry – Holters INDUSTRY JARGON

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. 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. 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. 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. 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. 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

Only 5% of a new field salesperson’s time, then, should be spent on developing selling skills. 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: 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. 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. Only 5% of a new field salesperson’s time, then, should be spent on developing selling skills. 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: 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. 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

Table 8-4 Media Used in Sales Training 77% Classroom with Instructor Workbooks/Manuals Role Plays CD-ROMAudiocassettesInternet 44% 34% 32% 39% 54%

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

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

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

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 results. EVALUATING TRAINING EFFECTIVENESS* 86% 68% 63% 31% 64% 41% 40%

Table 8-5 Sales Training Evaluation Practices MeasureCriteria TypeImportance Rank Trainee FeedbackReaction1 Supervisory AppraisalBehavior2 Self-AppraisalBehavior3 Bottom-Line MeasuresResults4 Customer AppraisalBehavior5

EXPERIMENTAL DESIGN Notation O 1 = Results before sales training X 1 = Sales training O 2 = Results after sales training O 2 – O 1 = Difference in results Experimental Group O1X1 O2O1X1 O2O1X1 O2O1X1 O2 Control Group O3 O4O3 O4O3 O4O3 O4 Sales Training Effect (O 2 – O 1 ) – (O 4 – O 3 )

Treat all employees as potential career employees. Treat all employees as potential career 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 lead in developing what goes into the program. 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. In times of crisis, increase, rather than decrease, the training program. Treat all employees as potential career employees. Treat all employees as potential career 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 lead in developing what goes into the program. 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. In times of crisis, increase, rather than decrease, the training program. BUILDING A SALES TRAINING PROGRAM