4 Steps to Sales Training That Delivers ROI
Steven Rosen, MBA
Despite the economic downturn progressive sales organizations are continuing to invest 2-5% of their annual sales budgets in sales training and development. These organizations undoubtedly will outperform their competitors who don’t invest. Training and development is one of the key factors that lead to improved sales performance.
The problem is that 90% of sales training is a waste of time and money. Most sales training is an event. It may increase sales force engagement but has little lasting impact. Without effective reinforcement the impact of your training will be lost within 30 days. The basis of reinforcement comes from sales managers coaching reps, post-training.
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Many tools can be used to benchmark skills, like 360-degree review. We have developed the Sales Manager Coaching Assessment which benchmarks each sales manager on 6 dimensions of effective coaching. You can also benchmark the level of sales rep engagement in each district as a starting base.
STEP 2: Delivery of Training
Once you have benchmarked the level skill/behaviors/competencies, there are several ways to make the actual delivery of training more impactful. Assign participants advanced reading and other pre-work so they will come to the training with a base level of knowledge as well as some exposure to the content beforehand. Role-playing and case studies allow for real-life application of the learning, which improves understanding and applicability. Trainers who are dynamic and create a high-impact learning environment add to the training experience.
Most trainers will do a “happy face” post-training questionnaire to gauge their effectiveness. All this does is allow them to pat themselves on the back and check the box that they have delivered effective training. As I stated earlier, the impact of training delivered by the best trainers is lost within 30 days without proper reinforcement.
Step 3: Reinforcement to sustain skills/behavior/competency changes
When sales reps take a training course the responsibility for reinforcement lies with their district sales managers. What happens when a district sales manager is trained? Who is responsible
To ensure that the training is truly taught for its intended purpose requires conducting training needs analysis. BusinessDictionary.com defines a training needs analysis as an “assessment of the training requirements of a target group in terms of (1) number of trainees, (2) their educational and professional background, (3) their present level of competence, and (4) the desired behavior or skill level acquired at the completion of training” (Training needs analysis, 2014).
The evaluation of training consists of a reaction, learning, behavior, and results. Results determine how much the trainee liked the program. Learning outlines what facts and concepts were learned. Behavior determines if the program had an effect on the behavior(s) of the trainees. And results highlight what was accomplished as a result of the program, i.e. reduction of turnover or cost. Evaluating a training program allows for an employer to identify and correct areas in which improvement is needed. In order accomplish company goals employees must be trained effectively. Training cannot be an afterthought; it should be planned and implemented correctly. Career Development Strategies
Increased Training Assessment scores drastically, by working with the training team to change teaching methods by making training interesting and more relatable to new agents.
Managers will receive diversity training as well as tolerance training and strategies for effective leadership in organizations.
There are many different training methods which the organisation utilises to train and develop their employees in all different departments and groups, however, the three main training methods used to train sales floor customer assistants within Marks and Spencer are on-the-job training, coaching and off-the-job training (Blogs.thegrangeschool.net, N.D). According to Pineda (2010) training within an organisation must be evaluated due to their training needs having to have beneficial and profitable outcomes for the business.
The merger between InterClean and EnviroTech is fast approaching. Our two companies will soon be crossed trained in various functions and positions within the newly formed organization. We have individuals from both organizations who have strong sales and leadership skills. In addition, InterClean executives need to balance growth and sustained success both locally and worldwide. In order to do that, it is necessary to establish a training program for the newly formed sales team.
The sales people were technically equipped to begin with but with the increased competition the sales people hired did not have as much technical expertise as required and these affected the sales. There were training session for new hires but only
Human resources can assist management with guidelines for a hiring process that produces loyal employees with goals of sales growth. These guidelines to be developed should be shared with all management included in the hiring process. Human resources should hold educational classes teaching the guidelines and proper ways to carry out the process. This could eliminate any misconceptions or errors during the hiring process. The Human Resources Department can aid management by implementing a mentor program. This program between management and new sales representatives encourages management follow up, motivation, and a way to track daily progress of sales representatives. These recommendations of improvement could help reduce training costs due to frequent turnover.
As House Handy’s Vice President of Sales I would utilize broad and specific measure to determine if we are achieving the appropriate return on each dollar invested on training. To begin with, I would partner with our Learning and Development department to ensure we had clear objectives and methods of measurements established prior to the creation of training for our new products. Thus, providing the Curriculum Developer assigned to create the training with clear guide posts regarding what sales reps should learn from the training and how we will assess if our training objectives were achieved. Second, all trainings would begin and end with an assessment specific to that new product to allow us to measure the effectiveness of the training, determine
Close more sales and bigger deals with a training series designed specifically for partner sales reps. The Challenger methodologies and business use cases are proven and effective tools for increasing sales.
How is the training being conducted on existing reps and new hires currently and how much time exactly is being allocated to that activity?
There is a small difference regarding the importance of training and development. This area of responsibility is crucial when an organization is striving for an increase in sales. Proper and thorough training will create the changes needed to enhance the knowledge and skills of each employee. Training is also a way of communication between management and staff and should be a top priority in all departments.
Another crucial part of managing a sales team is to continually recruit and train new staff. New talent is a great way to generate fresh ideas; you never want your sales team to become stale. Sales Managers are always establishing sales programs and advising their team on ways they can improve their performance (Bureau of Labor Statistics).
A training program that is well-designed is proven to achieve maximum results and meet the training needs identified during a training needs analysis. A well-executed training program will increase overall productivity and provide the knowledge, skills, and attitudes the employees need to perform successfully. This paper presents considerations for the design of a two-phase training program for existing employees – a two (2) day program, which covers the training needs to move the company in the right direction.
v Sales force planning – Go to market plan i.e. wholesale verses direct, growth planning, goal setting, market