12-1 Training Salespeople for Sales Success 12. TRAINING SALESPEOPLE FOR SALES SUCCESS 12-2 Learning Objectives Discuss how to develop sales training

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Training Salespeople Training Salespeople for Sales Successfor Sales Success

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TRAINING SALESPEOPLE FOR SALES SUCCESS

Learning Objectives

• Discuss how to develop sales training programs

• Understand the differences in training new recruits and experienced salespeople

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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

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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).

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• Who should be trained?

• What should be the primary emphasis in the training program?

• How should the training process be structured?

Determining Sales Training Needs

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Objectives of Sales Training

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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

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expert advice 12.1

Mr. John Cascio

President, PraX.es

• 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.

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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

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INNOVATION 12.2

• Link training to the challenges reps face right now

• Provide specific tools for reps to use

• Keep it interesting!

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.

Creating a Powerful Sales Training Experience

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• Answer three basic questions:

• Where in the organization is training needed?

• What should be the content of the training program?

• Who needs training?

Training Needs Analysis

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Analyzing the Training Needs of the Sales Force

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12.2

Continued

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Analyzing the Training Needs of the Sales Force

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• Designing a measurement program should answer:• What do we want to measure?• When do we want to measure?• How do we measure the training?

Evaluate and Review the Program

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• New recruits –• Formal training soon after hire• Actual selling• On-the-job coaching

• Experienced salespeople – • New developments in the market• Updating personal selling styles• New products/new technology• Opportunities for promotion

Training Needs Change with Time

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• 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

Training Needs Change with Time

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Topics in Sales Training

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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

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leadership 12.3

• 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

Training Ethics in the Sales Force – The MONY Group

Sources: Websites for The MONY Group (www.mony.com) and Insurance Marketplace Standards Association (www.imsaethics.org), August 2003.

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INNOVATION 12.4

• 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.

E-Commerce Uses E-Sales Training

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• On-the-job training (OJT)

• Individual instruction

• In-house classes

• External seminars

Common Sales Training Methods

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Keys for Effective OJT

• Teaming

• Meetings

• Customer interaction

• Mentoring

• Peer-to-peer communication

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leadership 12.5

• 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

Cooking Great Sales Training in the Kitchen

Sources: “Training Scorecard,” Sales & Marketing Management, July 2003, p.29.

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INNOVATION 12.6

• Companies are experimenting with Internet-based sales training tools

• Sales simulation programs use actors and interactive video

• Each salesperson receives feedback regarding:• Analyzing the customer’s needs• Active listening• Managing the sales process• Influencing and closing

Cyberspace Sales Simulation

Sources: Alex Hatzivassilis and Igor Kotlyar, “Increase the Number of Top Performers on Your Team,” The American Salesman, July 2003.

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Global Perspective 12.7

• 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

Successful Sales Training Roadblocks

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.

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Global Perspective 12.7

• 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

Successful Sales Training Roadblocks

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.

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EXHIBIT Evaluation Options Matrix12.4

Source: Mark W. Johnston & Greg Marshall, Sales Force Management, New York: McGraw-Hill 2003, p. 364.

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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

Documents

12-1 Training Salespeople for Sales Success 12. TRAINING SALESPEOPLE FOR SALES SUCCESS 12-2 Learning Objectives Discuss how to develop sales training