Sales Management 10 Sales Training

Boston Red Sox Spring Training in Ft. Myers, Florida

Training

Training as Socialization Training helps socialize new employees to the company. Can use it to orient new people to company Helps to instill corporate culture Helps define role –Improve accuracy, reduce ambiguity Learn about company, product, customers, industry, selling Can help to motivate employees

Role of Sales Training in Sales Force Socialization Initiation to Task — The degree to which a sales trainee feels competent and accepted as a working partner Role Definition — An understanding of what tasks are to be performed, what the priorities of the tasks are, and how time should be allocated among the tasks. Sales training helps socialize the new hires, providing them with a positive:

General Sales Training Objectives Better Time/Territory Management  Increase Productivity  Improved Morale  Lower Turnover  Improved Customer Relations

Obstacles to Sales Training Top management not dedicated to training. Training programs not adequately funded. Salespeople apathetic about training. Salespeople resent time intrusion. Salespeople resist suggested changes.

Sales Training Problems Sales training often lacks credibility. Fails to deliver what is promised. The level of approach in the training assumes too much of the participants. May need more basic starting point. No follow-up rewards to reinforce behavior taught in training.

Sales Training is an Investment Increases sales Decreases management headaches Decreases turnover Increases morale and customer satisfaction It takes time and effort Not a panacea, must be reinforced

Specific Training Investments Cross-Training Training personnel, materials, facilities Outside training: workshops In-Field Coaching Conferences Update/Repeat Reinforcement

Specific Training Objectives I Increase sales/profits Create positive attitudes/improve morale Socialization Reduce conflict and ambiguity Intro new products, markets, promo programs Develop people for future management jobs

Specific Training Objectives II Create/Raise awareness of ethical/legal issues Teach administrative procedures (expense reports, call log) How to use support tools (laptop computers) Minimize turnover Prepare new salespeople for field Improve teamwork

When To Train New Hires: –Field work then training –Training before field work –Can be days to more than a year Existing Sales Force –Annual –As needed –New product, problem, routine, remedial

Training Costs/Time New Hires –$4,000+ to nearly $10,000 –4± months average (Can exceed one year.) Existing Salespeople –About $4,000/year –Nearly a week (32.5 hours) per year –More emphasis on product vs. skills

Sales Training Topics: What I Product Knowledge –Helps with rational decision making –Competitors’ products as well as own –Takes longer for technical products –Need to know how product will be used Market/Industry –Economy –Customers: buying policies, patterns, preferences. –Customers’ customers (derived demand). Chain –Competitors

Sales Training Topics: What II Company –Policies: personnel, credit, order processing, advertising, sales promotion, travel, shipping. Sales Techniques/Skills Time/Territory Management –Develop territories to enhance rep’s efficiency –Plan and follow plan Legal/Ethical Issues –Mistakes can lead to big lawsuits –Money, time, reputation

Sales Training Topics: What III Other –Legit: Computer program, Relationship building, Selling procedures Decision Support System (DSS) –Questionable: L/R brain presentations, Body language

Training Methods: HOW On-the-job: most common External seminars: top three, major tool Home assignments: least favorite In house classes

Instructional Method Videotapes Lectures One-on-one Games/Simulation Case studies Audiotapes Slides Role playing

Adaptive Selling: Knowing How to Sell Knowing which plays to call when. Sophisticated knowledge structure –Knowing what script for each situation –Remembered situations - recognition Classify customers and address accordingly Effective sales rep is better able to discriminate on 3 attributes (Ineffective > 3, and still misclassifies)

Initial Sales Call Script Objectives Gather info about buyer needs, objectives Develop personal rapport w/buyer Create favorable impression about self Communicate positive impression: company Identify key decision makers Assess sales potential Assess buyer’s attitude toward company Lay groundwork for follow-up appointment Set specific follow-up appointment

Costs/Benefits of Training Costs: Direct & Indirect –Trainers, facilities, material, equipment –Lost sales, salaries Measurement criteria: –Reaction, learning, behavior, results Broad Benefits –Improved morale (job satisfaction) and lower turnover Specific Benefits –Call reports, new account sales, customer complaints

Measurement of Training Effectiveness Reaction of Trainees –Attitude –Questionnaires, Comments, Anecdotes, Interviews Learning –Understanding Concepts; Ability to apply –Before and After Testing; Knowledge Improvement Behavior –Behavior on the job, Critical Incident, Time Series Analysis Results –Changes to sales productivity and other measures –Do benefits outweigh the costs?