Part IVPart IV

SALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES

Part IVPart IV

SALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES

Teachers openTeachers openthe door. the door.

You enter You enter

by yourself.by yourself.

Chinese ProverbChinese Proverb

Teachers openTeachers openthe door. the door.

You enter You enter

by yourself.by yourself.

Chinese ProverbChinese Proverb

Chapter 8:Chapter 8:

Sales TrainingSales TrainingChapter 8:Chapter 8:

Sales TrainingSales Training

SALES TRAINING PROCESSSALES TRAINING PROCESS

Follow-Up TrainingFollow-Up Training

Planning forPlanning forSales TrainingSales Training

Planning forPlanning forSales TrainingSales Training

Developing theDeveloping theTraining ProgramTraining Program

Developing theDeveloping theTraining ProgramTraining Program

Evaluating TrainingEvaluating Training

What Where Training Trainers?Topics? to Train? Methods?

What Where Training Trainers?Topics? to Train? Methods?

Assess Setting Setting Training Objectives Budget Needs

Assess Setting Setting Training Objectives Budget Needs

SALES TRAINING SALES TRAINING OBJECTIVESOBJECTIVES

Increase sales or profitsIncrease sales or profits

Create positive attitudes/improve moraleCreate positive attitudes/improve morale

Improved customer relationsImproved customer relations

Reduce role conflict and ambiguity Reduce role conflict and ambiguity

(turnover)(turnover)

Improve efficiencies (time and territory)Improve efficiencies (time and territory)

Introduce new products, markets, or Introduce new products, markets, or

programsprograms

Increase sales or profitsIncrease sales or profits

Create positive attitudes/improve moraleCreate positive attitudes/improve morale

Improved customer relationsImproved customer relations

Reduce role conflict and ambiguity Reduce role conflict and ambiguity

(turnover)(turnover)

Improve efficiencies (time and territory)Improve efficiencies (time and territory)

Introduce new products, markets, or Introduce new products, markets, or

programsprograms

Why Train Salespeople?Why Train Salespeople?

CONVERSATIONS CONVERSATIONS

Sales Sales Manager Manager

Says:Says:

Salesperson Salesperson Says:Says:

Sales Sales Manager Manager Thinks:Thinks:

““Do you think the Do you think the customer will buy customer will buy from us? What are from us? What are the next steps?”the next steps?”

““I don’t know.”I don’t know.”

““Why did you leave Why did you leave without at least without at least

scheduling a scheduling a

follow-up call?”follow-up call?”

““You pushed the You pushed the buyer pretty hard.”buyer pretty hard.”

““I closed the deal, I closed the deal, didn’t I?”didn’t I?”

““It may be the last It may be the last sale you get with sale you get with this customer. this customer.

What happened to What happened to building building

relationships?”relationships?”

““I noticed that 20% I noticed that 20% of your calls were of your calls were on C accounts.”on C accounts.”

““I was in the area I was in the area and they like to see and they like to see

me, so I call on me, so I call on them.”them.”

““The profits from The profits from these accounts these accounts

don’t even pay for don’t even pay for

the calls. You need the calls. You need

to target better.”to target better.”

Experience Less than 2 year 392 21 86 2-5 years 593 29 145 5-10 years 565 5 152Over 10 years 470 8 139Regions Northeast 528 6 140 Southeast 520 8 161 Midwest 512 18 107 Southwest 421 26 111 West 544 21 131

Table 8-1Table 8-1 Cross-Tabulations from Company Cross-Tabulations from Company RecordsRecords

Average OrderAverage OrderSize per SalespersonSize per Salesperson

New CustomersNew CustomersPer SalespersonPer Salesperson

Total CustomersTotal CustomersPer SalespersonPer Salesperson

Judgment of:Judgment of:

Top ManagementTop Management

Sales ManagementSales ManagementTraining Training

DepartmentDepartment

Interview With:Interview With:

SalespeopleSalespeople

CustomersCustomers

Judgment of:Judgment of:

Top ManagementTop Management

Sales ManagementSales ManagementTraining Training

DepartmentDepartment

Interview With:Interview With:

SalespeopleSalespeople

CustomersCustomers

68%68%

73%73%

60%60%

59%59%

25%25%

DETERMINING TRAINING DETERMINING TRAINING NEEDS*NEEDS*

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

Performance Measures:

Sales VolumeSales Volume

Customer ServiceCustomer Service

Other Measures:

Observation of SalespeopleObservation of Salespeople

Attitude SurveysAttitude Surveys

Performance Measures:

Sales VolumeSales Volume

Customer ServiceCustomer Service

Other Measures:

Observation of SalespeopleObservation of Salespeople

Attitude SurveysAttitude Surveys

56%56%

51%51%

38%38%

28%28%

DETERMINING TRAINING DETERMINING TRAINING NEEDS*NEEDS*

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

1.1. Interviewed key members or management Interviewed key members or management to find out what changes are needed in to find out what changes are needed in performance of the sales force.performance of the sales force.

2.2. Sent an anonymous questionnaire to Sent an anonymous questionnaire to customers and prospects asking:customers and prospects asking: What do you expect of a salesperson in this industry?What do you expect of a salesperson in this industry? How do salespeople disappoint you?How do salespeople disappoint you? Which company in this industry does the best selling job?Which company in this industry does the best selling job? In what ways are its salespersons better?In what ways are its salespersons better?

3.3. Sent a confidential questionnaire to each Sent a confidential questionnaire to each salesperson asking:salesperson asking: What information do most of our salespersons need?What information do most of our salespersons need? What information do you want to learn better?What information do you want to learn better? What skills do most of our salespersons need to improve?What skills do most of our salespersons need to improve?

1.1. Interviewed key members or management Interviewed key members or management to find out what changes are needed in to find out what changes are needed in performance of the sales force.performance of the sales force.

2.2. Sent an anonymous questionnaire to Sent an anonymous questionnaire to customers and prospects asking:customers and prospects asking: What do you expect of a salesperson in this industry?What do you expect of a salesperson in this industry? How do salespeople disappoint you?How do salespeople disappoint you? Which company in this industry does the best selling job?Which company in this industry does the best selling job? In what ways are its salespersons better?In what ways are its salespersons better?

3.3. Sent a confidential questionnaire to each Sent a confidential questionnaire to each salesperson asking:salesperson asking: What information do most of our salespersons need?What information do most of our salespersons need? What information do you want to learn better?What information do you want to learn better? What skills do most of our salespersons need to improve?What skills do most of our salespersons need to improve?

STEPS IN PERFORMING A TRAINING STEPS IN PERFORMING A TRAINING ANALYSISANALYSIS

4.4. Did field audits (making sales calls) Did field audits (making sales calls) with 20% of the sales force?with 20% of the sales force?

5.5. Interviewed sales supervisors.Interviewed sales supervisors.

6.6. Discussed and agreed on training Discussed and agreed on training priorities with management.priorities with management.

7.7. Determined trainable topics from Determined trainable topics from information gathered in Steps 1-5. information gathered in Steps 1-5.

4.4. Did field audits (making sales calls) Did field audits (making sales calls) with 20% of the sales force?with 20% of the sales force?

5.5. Interviewed sales supervisors.Interviewed sales supervisors.

6.6. Discussed and agreed on training Discussed and agreed on training priorities with management.priorities with management.

7.7. Determined trainable topics from Determined trainable topics from information gathered in Steps 1-5. information gathered in Steps 1-5.

STEPS IN PERFORMING A STEPS IN PERFORMING A TRAINING ANALYSISTRAINING ANALYSIS

Table 8-2Table 8-2 Average Cost and Training Period Average Cost and Training Period for Sales Traineesfor Sales Trainees

ConsumerConsumer

IndustrialIndustrial

ServiceService

ConsumerConsumer

IndustrialIndustrial

ServiceService

$5,354$5,354

$9,893$9,893

$9,060$9,060

3.40 3.40 MonthsMonths 3.803.80

MonthsMonths

3.803.80MonthsMonths

Table 8-3Table 8-3

Average Cost of Training for Veteran Average Cost of Training for Veteran SalespeopleSalespeople

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

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

Med

ian

Sp

en

din

gM

ed

ian

Sp

en

din

g

Company SizeCompany Size

$3,752

$3,947

$3,902

$5,365

$4,824

ALLOCATING TRAINING ALLOCATING TRAINING TIMETIME

AverageAverage

Product knowledgeProduct knowledge 35% 35%

Market/Industry InformationMarket/Industry Information 15 15

Company OrientationCompany Orientation 10 10

Selling TechniquesSelling Techniques 30 30

Other topicsOther topics 1010

TotalTotal 100%100%

AverageAverage

Product knowledgeProduct knowledge 35% 35%

Market/Industry InformationMarket/Industry Information 15 15

Company OrientationCompany Orientation 10 10

Selling TechniquesSelling Techniques 30 30

Other topicsOther topics 1010

TotalTotal 100%100%

““What does HCFA say?”What does HCFA say?” ““DRG’s are killing us.”DRG’s are killing us.” ““Is this level II in the POL regs?”Is this level II in the POL regs?” ““The LTC market’s future looks good.”The LTC market’s future looks good.” ““The HME industry is changing rapidly.”The HME industry is changing rapidly.” How about:How about:

– ReflotronsReflotrons

– SpirometrySpirometry– HoltersHolters

““What does HCFA say?”What does HCFA say?” ““DRG’s are killing us.”DRG’s are killing us.” ““Is this level II in the POL regs?”Is this level II in the POL regs?” ““The LTC market’s future looks good.”The LTC market’s future looks good.” ““The HME industry is changing rapidly.”The HME industry is changing rapidly.” How about:How about:

– ReflotronsReflotrons

– SpirometrySpirometry– HoltersHolters

INDUSTRY JARGONINDUSTRY JARGON

80%80% of a new field salesperson’s training should of a new field salesperson’s training should

be focused on developing customer be focused on developing customer profilesprofiles, ,

digging out account digging out account surveysurvey data, and building data, and building

working working relationshipsrelationships in the field. in the field.

15%15% of time can then be invested in of time can then be invested in learninglearning

about how your product or service is used by about how your product or service is used by

existing customers. The field is the place to existing customers. The field is the place to

gain gain productproduct knowledgeknowledge, not from an , not from an

engineer or home office instructor.engineer or home office instructor.

80%80% of a new field salesperson’s training should of a new field salesperson’s training should

be focused on developing customer be focused on developing customer profilesprofiles, ,

digging out account digging out account surveysurvey data, and building data, and building

working working relationshipsrelationships in the field. in the field.

15%15% of time can then be invested in of time can then be invested in learninglearning

about how your product or service is used by about how your product or service is used by

existing customers. The field is the place to existing customers. The field is the place to

gain gain productproduct knowledgeknowledge, not from an , not from an

engineer or home office instructor.engineer or home office instructor.

ON-THE-JOB SALES ON-THE-JOB SALES TRAININGTRAINING

Only Only 5%5% of a new field salesperson’s time, then, of a new field salesperson’s time, then,

should be spent on developing should be spent on developing selling skillsselling skills. .

Again, the place to do this is face-to-face with Again, the place to do this is face-to-face with

real customers: real customers: – setting and testing real precall objectives setting and testing real precall objectives – asking for real opportunities to do business. asking for real opportunities to do business.

Understanding what has to be done to build Understanding what has to be done to build

selling skills can be mastered in 15 minutes. selling skills can be mastered in 15 minutes.

Doing it takes Doing it takes years of actualyears of actual, not simulated , not simulated

practice.practice.

Only Only 5%5% of a new field salesperson’s time, then, of a new field salesperson’s time, then,

should be spent on developing should be spent on developing selling skillsselling skills. .

Again, the place to do this is face-to-face with Again, the place to do this is face-to-face with

real customers: real customers: – setting and testing real precall objectives setting and testing real precall objectives – asking for real opportunities to do business. asking for real opportunities to do business.

Understanding what has to be done to build Understanding what has to be done to build

selling skills can be mastered in 15 minutes. selling skills can be mastered in 15 minutes.

Doing it takes Doing it takes years of actualyears of actual, not simulated , not simulated

practice.practice.

ON-THE-JOB SALES ON-THE-JOB SALES TRAININGTRAINING

Table 8-4Table 8-4

Media Used in Sales TrainingMedia Used in Sales Training

77%77%Classroom with Classroom with

InstructorInstructor

Workbooks/ManualsWorkbooks/Manuals

Role PlaysRole Plays

CD-ROMCD-ROM

AudiocassettesAudiocassettes

InternetInternet

44%44%

34%34%

32%32%

39%39%

54%54%

EVALUATING SALES EVALUATING SALES TRAININGTRAINING

Level of Level of EvaluatioEvaluatio

n:n:

What toWhat toMeasure:Measure:

How to How to Measure:Measure:

When toWhen toMeasure:Measure:

Reactions:Reactions:

“Are “Are trainees trainees satisfied?”satisfied?”

PerceptionPerceptionssof trainingof training

Course Course evaluationevaluation

Instructor Instructor evaluationevaluation

SurveySurvey InterviewInterview

At the At the completion completion of trainingof training

Learning:Learning:

“Did the “Did the training training have its have its intended intended effect?”effect?”

Knowledge Knowledge of course of course contentcontent

ExamsExams Self-Self-

assessmenassessmentt

InterviewInterview

At the At the completion completion of training of training and at and at points in points in the futurethe future

Level of Level of EvaluatioEvaluatio

n:n:

What toWhat toMeasure:Measure:

How to How to Measure:Measure:

When toWhen toMeasure:Measure:

Behavior:Behavior:

“Are the “Are the salespeoplsalespeople on the e on the job using job using their their knowledge knowledge and skills and skills on the on the job?”job?”

SkillsSkills Job Job

performancperformancee

AbsenteeisAbsenteeismm

TurnoverTurnover

PerformancPerformance e indicatorsindicators

ObservatioObservationn

Managerial Managerial assessmenassessmentt

Self-Self-assessmenassessmentt

Over the Over the first year first year after after trainingtraining

EVALUATING SALES EVALUATING SALES TRAININGTRAINING

Level of Level of EvaluatioEvaluatio

n:n:

What toWhat toMeasure:Measure:

How to How to Measure:Measure:

When toWhen toMeasure:Measure:

Results:Results:

“What “What effect does effect does training training have on have on the the company?”company?”

Job Job satisfactionsatisfaction

Customer Customer satisfactionsatisfaction

SalesSales ProfitsProfits ROIROI

SurveySurvey ExperimentExperiment

ss Managerial Managerial

assessmenassessmentt

A year A year after the after the trainingtraining

EVALUATING SALES EVALUATING SALES TRAININGTRAINING

Reactions:Trainees

Supervisors

Learning:Performance

Pre-vs. Post-Training

Behaviors:Supervisor’s Appraisal

Customer Appraisal

Results:Bottom Line

Reactions:Trainees

Supervisors

Learning:Performance

Pre-vs. Post-Training

Behaviors:Supervisor’s Appraisal

Customer Appraisal

Results:Bottom Line

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

EVALUATING TRAINING EVALUATING TRAINING EFFECTIVENESS*EFFECTIVENESS*

86%86%

68%68%

63%63%

31%31%

64%64%

41%41%

40%40%

Table 8-5Table 8-5

Sales Training Evaluation Sales Training Evaluation PracticesPractices

MeasureMeasure Criteria TypeCriteria Type Importance Importance RankRank

Trainee FeedbackTrainee Feedback ReactionReaction 11

Supervisory AppraisalSupervisory Appraisal BehaviorBehavior 22

Self-AppraisalSelf-Appraisal BehaviorBehavior 33

Bottom-Line MeasuresBottom-Line Measures ResultsResults 44

Customer AppraisalCustomer Appraisal BehaviorBehavior 55

EXPERIMENTAL DESIGNEXPERIMENTAL DESIGN

NotationNotation OO11 = Results before sales = Results before sales trainingtraining

XX11 = Sales training = Sales training

OO22 = Results after sales training = Results after sales training

OO22 – O – O11 = Difference in results = Difference in results

Experimental Experimental GroupGroup

OO11 XX11 OO22

Control GroupControl Group OO33 OO44

Sales Training Sales Training EffectEffect

(O(O22 – O – O11) – (O) – (O44 – O – O33))

Treat all employees as potential career Treat all employees as potential career employees.employees.

Require regular re-training.Require regular re-training.

Spend time and money generously.Spend time and money generously.

Salespeople and sales managers must Salespeople and sales managers must take the lead in developing what goes take the lead in developing what goes into the program.into the program.

In times of crisis, increase, rather than In times of crisis, increase, rather than decrease, the training program.decrease, the training program.

Treat all employees as potential career Treat all employees as potential career employees.employees.

Require regular re-training.Require regular re-training.

Spend time and money generously.Spend time and money generously.

Salespeople and sales managers must Salespeople and sales managers must take the lead in developing what goes take the lead in developing what goes into the program.into the program.

In times of crisis, increase, rather than In times of crisis, increase, rather than decrease, the training program.decrease, the training program.

BUILDING A SALES BUILDING A SALES TRAINING PROGRAMTRAINING PROGRAM