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

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.

What goes on in Sales Training?

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

SALES TRAINING OBJECTIVES Why Train Salespeople? 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

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.”

Table 8-1 Cross-Tabulations from Company Records 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 Average Order Size per Salesperson New Customers Per Salesperson Total Customers Per Salesperson

Planning For Sales Training Assessing sales training needs Establishing specific objectives for the training program Setting a budget for the program

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

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

STEPS IN PERFORMING A TRAINING ANALYSIS Interviewed key members or management to find out what changes are needed in performance of the sales force. 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? 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 Did field audits (making sales calls) with 20% of the sales force? Interviewed sales supervisors. Discussed and agreed on training priorities with management. Determined trainable topics from information gathered in Steps 1-5.

How much should it cost?

Table 8-2 Average Cost and Training Period for Sales Trainees Consumer Industrial Service $5,354 $9,893 $9,060 Consumer Industrial Service 3.40 Months 3.80 Months 3.80 Months

Table 8-3 Average Cost of Training for Veteran Salespeople $5,365 $4,824 $3,947 $3,902 $3,752 Median Spending Under $5 $5-$25 $25-$100 $100-$250 Over $250 Million Million Million Million Million Company Size

What do you train on?

ALLOCATING TRAINING TIME Average Product knowledge 35% Market/Industry Information 15 Company Orientation 10 Selling Techniques 30 Other topics 10 Total 100%

INDUSTRY JARGON “What does HCFA say?” “DRG’s are killing us.” “Is this level II in the POL regs?” “The LTC market’s future looks good.” “The HME industry is changing rapidly.” How about: Reflotrons Spirometry Holters Oxygen Concentrators Thoracic Catheter

Centralized versus Decentralized Field Training Where do you train? Centralized versus Decentralized Field Training

ON-THE-JOB SALES TRAINING 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 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.

Training Media

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

EVALUATING SALES TRAINING Level of Evaluation: What to Measure: How to When to 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 At the completion of training and at points in the future

EVALUATING SALES TRAINING Level of Evaluation: What to Measure: How to When to 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 When to 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 TRAINING EFFECTIVENESS* Reactions: Trainees Supervisors Learning: Performance Pre-vs. Post-Training Behaviors: Supervisor’s Appraisal Customer Appraisal Results: Bottom Line 86% 68% 63% 31% 64% 41% 40% *Percent of firms indicating they often use these evaluations to measure training results.

Sales Training Evaluation Practices 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

BUILDING A SALES TRAINING PROGRAM 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.