3. Sales Training Issues
Who should be trained?
What should be the primary emphasis in
the training program?
How should the training process be
structured?
– on-the-job training and experience?
– formal and more consistent centralized
program?
– web-based?
– instructor-based?
5. Obstacles to Introducing
Training
Top management not dedicated to sales
training
Lack of buy-in from frontline sales
managers and salespeople
Salespeople’s lack of understanding of
what training is supposed to accomplish
Salespeople’s lack of understanding
regarding application of training to
everyday tasks
6. Well-Designed Training
Program
Analyzes sales force needs
Sets specific, realistic, and measurable training
objectives
Allows for adequate development and timely,
effective implementation
Subjects itself to evaluation and review
– What do we want to measure?
– When do we want to measure?
– How do we do it? What measuring tools are
available?
Modifies to achieve greater effectiveness
8. Recent Shifts in Training New
Sales Recruits
Companies with less than $5 million in annual sales
are spending more on sales training per new hire -
$5,500 worth of training per salesperson.
Training in smaller companies has increased from
3.3 months to 4.4 months.
Smaller companies are placing more emphasis on
training than several years ago.
Companies are spending time and money on
training experienced salespeople
Companies with more than $5 million in annual
sales, are spending less money on training
Source: Christen P. Heide, Dartnell’s 30th Sales Force
Compensation Survey: (Chicago: Dartnell Corp., 1999)
9. Training Costs and Duration
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006
10. Recent Shifts in Training
Experienced Sales Personnel
Experienced sales reps are given, on
average, 32.5 hours of ongoing training
per year at a cost of $4,032 per rep
Continuing increasing amounts of training
reflects a commitment to provide ongoing
learning opportunities for senior
salespeople
Companies are spending an increasing
amount of time on product training and
less on training in selling skills
Source: Christen P. Heide, Dartnell’s 30th Sales Force
Compensation Survey: (Chicago: Dartnell Corp., 1999)
12. Sales Training Topics
Product or service knowledge
Market/Industry orientation
Company orientation
Selling skills
Time and territory management
Legal and ethical issues
Technology
Specialized topics
13. Product Knowledge
Enables a salesperson to provide prospects and customers
with the critical information for rational decision-making
Involves
– Knowing how the product is made
– How the product is commonly used, and
– How it should not be used.
Customers often want to know how competitive products
compare on
– price
– construction
– performance
– compatibility with each other
Companies that produce technical products spend a greater
amount of time on product knowledge
14. Market/Industry Orientation
Topics
How a particular industry fits into the overall
economy
Knowledge of the industry and the economy
Economic fluctuations that affect buying behavior
and require adaptive selling techniques
Customers' buying policies, patterns and preferences
in light of competition
Customers' customers and what satisfies them
Needs of both wholesalers and retailers
15. Company Orientation Topics
Company polices that affect their selling
activities
How to handle customer requests for price
adjustments, product modifications, faster
delivery and different credit terms
Sales manuals that cover product line
information and company polices
A well-prepared sales manual gives a sales
representative quick answers to a
customer's questions
16. Time and Territory
Management
Salestrainees need to learn to
manage time and territories
80/20 rule applies:
– 20% of the customers account for
– 80% of the business and
– Require a direct proportion of time and
attention
17. Legal/Ethical Issues
Federal law dictates corporate action or
avoidance of action in areas of marketing,
sales and pricing
Sales personnel need to understand the
federal, state and local laws that constrain
their selling activities
Statements made by salespeople carry
both legal and ethical implications
Lapses in ethical conduct often lead to
legal problems
18. Technology
Notebook computers
– Presentations
– connecting to company intranet or extranet
– delivering documentation quickly and accurately
Home offices eliminate the need to go to another
office
Salesperson can be almost totally self-sufficient with
– high-speed network connection
– computer
– printer
– cell phone
Effective computer use affords sales personnel more
face-to-face customer contact time
19. Specialized Training Topics
Overcoming price objections
Holdingthe line on price
Working the trade show
Problem solving
20. Training Methods - How
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006
21. Training Methods - Where
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006
22. Keys for Effective OJT
Teaming - Bringing together people with different
skills to address issues.
Meetings - Setting aside times when employees at
different levels and positions can get together and
share thoughts on various topics.
Customer interaction - Including customer feedback
as part of the learning process.
Mentoring - Providing an informal mechanism for new
salespeople to interact and learn from more
experienced ones.
Peer-to-peer communication - Creating opportunities
for salespeople to interact together for mutual
learning.
Source: The Education Development Center (www.edc.org)
23. Classroom Training
Trainee receives standard briefings in
– product knowledge
– company polices
– customer and market characteristics
– selling skills
Formal training sessions avoid wasting
executive time
Classroom sessions permit use of audiovisual
materials and technical resources
Interaction between sales trainees builds
camaraderie
24. Measuring the Costs and
Benefits
Salestraining consumes substantial
time, budget and support resources
Relationship
between sales training
and revenue is difficult to measure
25. Broad Benefits
Improved morale
Lower turnover
Higher customer satisfaction
Management’s commitment to quality and
continuous improvement
Measuring changes in skills, reactions and
learning assists both new and experienced
sales personnel
