12 Training Salespeople for Sales Success 12-1 TRAINING SALESPEOPLE FOR SALES SUCCESS Learning Objectives • Discuss how to develop sales training programs • Understand the differences in training new recruits and experienced salespeople 12-2 TRAINING SALESPEOPLE FOR SALES SUCCESS Learning Objectives • Define the topics covered in a sales training program • Understand the various methods for conducting sales training • Explain how to measure the costs and benefits of sales training 12-3 TRAINING SALESPEOPLE FOR SALES SUCCESS Hammering Home Training: Black & Decker Focuses on the Brand • Black & Decker implements its brand sales training with several tools, including: • Online brand-awareness courses • 11,000 square foot facility to give salespeople hands-on experience • Black and Decker showed a 16% increase in sales (to $1.09 billion) in early 2004 over the previous year Sources: “Selling the Brand,” Sales & Marketing Management, August 2003, p.23; and the Black & Decker website (www.bdk.com). 12-4 TRAINING SALESPEOPLE FOR SALES SUCCESS Determining Sales Training Needs 12-5 • Who should be trained? • What should be the primary emphasis in the training program? • How should the training process be structured? TRAINING SALESPEOPLE FOR SALES SUCCESS 10.3 EXHIBIT 12.1 Objectives of Sales Training 12-6 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS expert advice 12.1 Mr. John Cascio President, PraX.es 12-7 • Effective sales training is a powerful way to align the sales force with the company’s overall approach to the market • Tailor training for experienced sales reps to their approach to selling. TRAINING SALESPEOPLE FOR SALES SUCCESS expert advice 12.1 • Metrics critical for assessing the value of sales training programs include: – Are reps navigating customers through agreed steps? – Is the sales force actively performing critical steps? – How accurate are the sales forecasts? – Measurement of the specific training objective – Turnover 12-8 TRAINING SALESPEOPLE FOR SALES SUCCESS INNOVATION 12.2 Creating a Powerful Sales Training Experience • Link training to the challenges reps face right now • Provide specific tools for reps to use • Keep it interesting! 12-9 Source: Audrey Bottjen, “Interview with a Salesperson,” Sales & Marketing Management, April 2001, p. 70; E. James Randall and Cindy H. Randall, “Review of Salesperson Selection Techniques and Criteria: A Managerial Approach,” International Journal of Research in Marketing 7 (1990), pp. 81-95. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS Training Needs Analysis 12-10 • Answer three basic questions: • Where in the organization is training needed? • What should be the content of the training program? • Who needs training? TRAINING SALESPEOPLE FOR SALES SUCCESS 10.3 EXHIBIT 12.2 Analyzing the Training Needs of the Sales Force Continued 12-11 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS 10.3 EXHIBIT 12.2 Analyzing the Training Needs of the Sales Force 12-12 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS Evaluate and Review the Program • Designing a measurement program should answer: • What do we want to measure? • When do we want to measure? • How do we measure the training? 12-13 TRAINING SALESPEOPLE FOR SALES SUCCESS Training Needs Change with Time • New recruits – • Formal training soon after hire • Actual selling • On-the-job coaching • Experienced salespeople – • • • • 12-14 New developments in the market Updating personal selling styles New products/new technology Opportunities for promotion TRAINING SALESPEOPLE FOR SALES SUCCESS Training Needs Change with Time • Cisco Systems trains its own sales force and resellers/distributors • Cisco Channel Partners must pass the Cisco Sales Expert exam • The Cisco Sales Expert designation is valid for two years 12-15 TRAINING SALESPEOPLE FOR SALES SUCCESS 10.3 EXHIBIT 12.3 Topics in Sales Training 12-16 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS Benefits of Product Knowledge • Salespeople gain pride and confidence in product quality • Self-assurance emanating from technical knowledge • Using operational vocabulary to communicate with customers • Effective diagnosis of customer problems 12-17 TRAINING SALESPEOPLE FOR SALES SUCCESS leadership 12.3 Training Ethics in the Sales Force – The MONY Group • The MONY Group has created a program to ensure its sales force behaves ethically – New policies and procedures – Sales professionals take a course in ethics – Accepted into the Insurance Marketplace Standards Association Sources: Websites for The MONY Group (www.mony.com) and Insurance Marketplace Standards Association (www.imsaethics.org), August 2003. 12-18 TRAINING SALESPEOPLE FOR SALES SUCCESS INNOVATION 12.4 E-Commerce Uses E-Sales Training • IDC reports Internet sales training will increase from $6.6 billion (2002) to $23.7 billion (2006) • Key factors for effective e-learning • Content that captures interest • Clear explanation of learning objectives • Continuous practice updates • Future of e-sales training lies in its ability to provide cost-effective training on people skills rather than data Source: Julia Chang, “No Instructors Required?” Sales & Marketing Management, May 2003, p.26. 12-19 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS Common Sales Training Methods • On-the-job training (OJT) • Individual instruction • In-house classes • External seminars 12-20 TRAINING SALESPEOPLE FOR SALES SUCCESS Keys for Effective OJT 12-21 • Teaming • Meetings • Customer interaction • Mentoring • Peer-to-peer communication TRAINING SALESPEOPLE FOR SALES SUCCESS leadership 12.5 Cooking Great Sales Training in the Kitchen • Sales training in the kitchen can build team spirit and foster cooperation • Working together in a different environment is a great opportunity for team building • A facilitator who makes it about more than cooking is key Sources: “Training Scorecard,” Sales & Marketing Management, July 2003, p.29. 12-22 TRAINING SALESPEOPLE FOR SALES SUCCESS INNOVATION 12.6 Cyberspace Sales Simulation • Companies are experimenting with Internetbased sales training tools • Sales simulation programs use actors and interactive video • Each salesperson receives feedback regarding: • • • • 12-23 Analyzing the customer’s needs Active listening Managing the sales process Influencing and closing Sources: Alex Hatzivassilis and Igor Kotlyar, “Increase the Number of Top Performers on Your Team,” The American Salesman, July 2003. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. TRAINING SALESPEOPLE FOR SALES SUCCESS Global Perspective 12.7 Successful Sales Training Roadblocks • • • • • Training can’t solve the problem Your busy, jaded salespeople are not open to learning new skills Managers don’t support the training program Conflicting methods and philosophies are taught at different sessions The training isn’t relevant to the company’s pressing needs Sources: The Pro Team website (www.theproteam.com), December 2003; and Mark McMaster, “Is Your Sales Training a Waste of Money?,” Sales & Marketing Management, January 2001, pp.40-48. 12-24 TRAINING SALESPEOPLE FOR SALES SUCCESS Global Perspective 12.7 Successful Sales Training Roadblocks • • • • The training format doesn’t fit the need E-learning is overused or used in the wrong situations There’s no follow-up after training The trainer can’t relate to the sales team Sources: The Pro Team website (www.theproteam.com), December 2003; and Mark McMaster, “Is Your Sales Training a Waste of Money?,” Sales & Marketing Management, January 2001, pp.40-48. 12-25 TRAINING SALESPEOPLE FOR SALES SUCCESS EXHIBIT 12.4 Evaluation Options Matrix Source: Mark W. Johnston & Greg Marshall, Sales Force Management, New York: McGraw-Hill 2003, p. 364. 12-26 TRAINING SALESPEOPLE FOR SALES SUCCESS Example - Measuring the Benefits of Sales Training in Manufacturing • This three-step approach will provide an accurate measure of training’s contribution to the bottom line • • • Determine the company's annual training investment Develop behavioral training objectives that directly support corporate strategy Measure the learned behaviors as they are applied on the job, and the resulting dollar values of those behaviors on the bottom line Source: By Chuck Holmes and Terry Carnes, Contributing Editors; Industrial Distribution April 1, 2004 12-27