Part IV

SALES FORCE COMPETENCIES

Chapter 8:
Sales Training Teachers open
the door.

You enter
by yourself.
Chinese Proverb
 SALES TRAINING PROCESS
Assess Setting Setting
Planning for Training Objectives Budget
Sales Training Needs

Developing the What Where Training Trainers?

Training Program Topics? to Train? Methods?

Evaluating Training

Follow-Up Training
SALES TRAINING OBJECTIVES

Why Train Salespeople?

 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
CONVERSATIONS

Sales Manager Salesperson Sales Manager

Says: Says: Thinks:
“Do you think the “Why did you leave
customer will buy without at least
“I don’t know.” scheduling a
from us? What are the
next steps?” follow-up call?”
“It may be the last
sale you get with this
“You pushed the buyer “I closed the deal,
customer. What
pretty hard.” didn’t I?”
happened to building
relationships?”
“The profits from
“I noticed that 20% of “I was in the area and these accounts
your calls were on C they like to see me, so don’t even pay for
accounts.” I call on them.” the calls. You need
to target better.”
Table 8-1
Cross-Tabulations from Company Records

Average Order New Customers Total Customers

Size per Salesperson Per Salesperson Per Salesperson

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
DETERMINING TRAINING NEEDS*

Judgment of:
Top Management 68%

Sales Management 73%

Training Department 60%

Interview With:
Salespeople 59%

Customers 25%

* Percent of firms indicating they often use these assessments to determine training needs.
DETERMINING TRAINING NEEDS*

Performance Measures:
Sales Volume 56%

Customer Service 51%

Other Measures:
Observation of Salespeople 38%

Attitude Surveys 28%

* Percent of firms indicating they often use these assessments to determine training needs.
STEPS IN PERFORMING A TRAINING ANALYSIS
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 1-5.
Table 8-2

Average Cost and Training Period

for Sales Trainees

Consumer $5,354

Industrial $9,893

Service $9,060

Consumer 3.40 Months

3.80
Industrial Months

Service 3.80
Months
 Table 8-3
Average Cost of Training for Veteran Salespeople

$6,000
$5,365
Median Spending

$5,000 $4,824

$3,947 $3,902
$4,000 $3,752

$3,000

$2,000

$1,000

$0
Under $5 $5-$25 $25-$100 $100-$250 Over $250
Million Million Million Million Million

Company Size
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
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.
Table 8-4
Media Used in Sales Training

Classroom with Instructor

77%

Workbooks/Manuals 54%

Role Plays 44%

CD-ROM 39%

Audiocassettes 34%

Internet 32%
EVALUATING SALES TRAINING

Level of What to How to When to

Evaluation: Measure: Measure: Measure:

 Reactions:  Perceptions  Survey  At the

of training Interview completion
“Are trainees 
of training
satisfied?”  Course
evaluation
 Instructor
evaluation
 Learning:  Knowledge  Exams  At the
of course Self- completion
“Did the content

of training
training assessment
and at points
have its  Interview in the future
intended
effect?”
EVALUATING SALES TRAINING

Level of What to How to When to

Evaluation: Measure: Measure: Measure:

 Behavior:  Skills  Performance  Over the

Job indicators first year
“Are the 
after
salespeople performance  Observation
training
on the job  Absenteeism  Managerial
using their  Turnover assessment
knowledge  Self-
and skills on assessment
the job?”
EVALUATING SALES TRAINING

Level of What to How to When to

Evaluation: Measure: Measure: Measure:

 Results:  Job  Survey  A year after

satisfaction Experiments the training
“What effect 

does training  Customer  Managerial

have on the satisfaction assessment
company?”  Sales
 Profits
 ROI
EVALUATING TRAINING EFFECTIVENESS*

Reactions:
86%
Trainees
Supervisors 68%

Learning:
63%
Performance
Pre-vs. Post-Training 31%

Behaviors:
Supervisor’s Appraisal 64%
Customer Appraisal 41%

Results:
Bottom Line 40%

*Percent of firms indicating they often use these evaluations to measure training results.
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
EXPERIMENTAL DESIGN

Notation O1 = Results before sales training

X1 = Sales training
O2 = Results after sales training
O2 – O1 = Difference in results

Experimental Group O1 X1 O2

Control Group O3 O4

Sales Training Effect (O2 – O1) – (O4 – O3)

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.