STATE OF SALES TRAINING

EXECUTIVE SUMMARY

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2 | TALENT MANAGEMENT PRACTICES AND OPPORTUNITIES2 | STATE OF SALES TRAINING

| EXECUTIVE SUMMARY |

DETERMINING THE FOCUS AND DELIVERY METHODS OF SALES TRAININGThe study inquired about five specific categories of sales training:

• selling skills

• product training

• industry training

• company-specific training

• sales management training.

These five sales training categories all contribute to success, but organizations place more emphasis on some of them than they do with others. In fact, selling skills is the most critical type of training, accounting for more than one-third of the annual sales training hours. Product training receives the next largest share, while industry training, company-specific training, and sales management training receive shares that are typically at a much lower level overall.

EXAMINING METHODS OF DELIVERYThe study examined nine specific training delivery meth-ods to determine the most popular approaches used in delivering training content in three different areas: selling skills, product training, and sales management. In each case, it was clear that more traditional methods continue to trump technology-based methods, not surprising in the face-to-face people business of sales training. For ex-ample, internal instructor-led classroom training leads as the most popular method of delivering each type of sales training content. Other popular approaches are on-the-job learning, coaching/mentoring, and external instructor-led classroom training. The study found that online or web-based methods, such as podcasts, wikis, and other technology-based approaches, are used far less often than more traditional methods.

In today’s challenging economic environment no company can afford the missed opportunities that stem from an unprepared sales force. An organization’s sales force drives the bottom line—and effective sales training is the bedrock of a successful sales program. The ASTD/Intrepid/i4cp State of Sales Training Study (the study) explores how today’s organizations are approaching sales training and sheds light on opportunities that organizations are missing to optimize those approaches or consider new ones. In our study, we asked survey participants some groundbreaking questions and the responses that we received provide new insight into the current—and future—state of sales training globally. In these economically challenging times, there is great pressure to achieve revenue forecasts, a goal made more difficult when budget cuts affect the ability to attract top talent. The study gives both learning professionals and sales team members cutting-edge ideas for bringing the sales organization to a new level of performance.

UNDERSTANDING SALES TRAINING LEADERSHIPMore than half (56 percent) of study participants entrusted sales training accountability to either the CEO or an executive-level sales leader. This statistic underscores the recognition of many organizations that sales training has a direct impact on the bottom line. Larger companies are most likely to place the primary responsibility for sales training/development with a sales executive or with a learning executive.

Sales management training is the category of sales

training addressed with the least frequency—less than

annually, if at all.

| 3CHAPTER

| FOREWORD |

| 3EXECUTIVE SUMMARY OF AN ASTD RESEARCH REPORT

Contemporary sales trainers focus on consultative selling skills, listening skills, and relationship-building skills above all.

Other popular aspects of selling skills training identified in the study include adapting the sales process to specific buying processes, problem solving/diagnosis, closing skills, and prospecting approaches.

The study suggests that it’s better to learn selling skills by sharing knowledge, but trial and error works, too. Included among the best ways for sales team members to learn selling skills are formal mentoring/coaching, trial and error, and observation. By contrast, technology-based learning methods such as online delivery, wikis, and other Web 2.0 tools are seldom used as a route to learning selling skills.

INTEGRATING SALES TRAINING INTO THE LEARNING FUNCTIONFor most organizations, sales training decisions, such as design, delivery, budget, personnel, and content strategy, tend to reside within the sales function, making sales training more isolated from, rather than integrated into, the corporate learning function. Those who integrate their sales training into the broader corporate function are most likely to integrate content strategy and the deliv-ery of training. But the learning design, staff training, and budgeting areas of sales training may not be integrated at all or only to a small extent. This makes the sales training function one of the last major training areas to remain somewhat separate from the organization’s other learning and development professionals.

DISCOVERING MORE ABOUT THE FREQUENCY AND DURATION OF SALES TRAININGOf the five types of sales training, organizations provide product-related training with greatest frequency—quar-terly or more often—probably because products tend to change more quickly than selling skills or sales manage-ment skills. Other training—company-specific training, industry training, and selling skills—is more likely to be provided on an annual basis. Sales management training, on the other hand, is the focus addressed with the least frequency, less than annually, if at all. First-year sales team members tend to benefit the most from sales training—37 percent receive 16 days or more of sales training annually. The volume of training afford-ed to third-year and tenth-year sales professionals drops dramatically. More than one-third (36 percent) of third-year sales professionals average only three to six days of sales training annually, and 39 percent of tenth-year sales professionals average zero to four days of sales training. The study also found that few people beyond the sales team receive any training in selling skills. It’s possible that this trend reduces sales success, given the study also found a significant positive correlation between the de-gree to which respondents said they’d had success meet-ing their sales quotas and the degree to which non-sales managers had training in selling skills.

APPRECIATING THE IMPORTANCE OF SELLING SKILLS TRAININGToday’s selling environment tends to call for “softer,” or more people-oriented, skills rather than “hard sell” skills. Contemporary sales trainers focus on consultative selling, listening, and relationship-building skills above all. This suggests that the traditional profile of salespeople relying primarily on their powers of persuasion may be a relic of the past.

4 | STATE OF SALES TRAINING

The sales training function seems to be more isolated

from, rather than integrated into, the corporate

learning function.

Success meeting sales quotas was positively correlated with the degree to which sales training is integrated with the corporate learning function. The more integrated the sales training, the greater the success in meeting sales quotas. Simply put, integration is related to more sales.

Based on a survey of more than 500 experts, the ASTD/Intrepid/i4cp investigation into key trends in sales train-ing contributes much-needed information to the indus-try’s knowledge of the topic. Improving sales training programs clearly has the potential to contribute to the long-term success of any organization, yet it can be a struggle to maintain a successful sales training program. This research report will equip you with the statistics to inform important sales training decisions, provide you with a background on the current sales training environ-ment, and give you policy recommendations that can get you started on the road to success now.

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THE AMERICAN SOCIETY FOR TRAINING & DEVELOPMENTThe American Society for Training & Development (ASTD) is the world’s largest association dedicated to workplace learning and performance professionals. ASTD’s members come from more than 100 countries and connect locally in 136 U.S. chapters and 25 global networks. Members work in thousands of organizations of all sizes, in government, as independent consultants, and suppliers.

ASTD started in 1944 when the organization held its first annual conference. ASTD has widened the profession’s focus to link learning and performance to individual and organi-zational results and is a sought-after voice on critical public policy issues. For more information, visit www.astd.org.

THE INSTITUTE FOR CORPORATE PRODUCTIVITYThe Institute for Corporate Productivity (i4cp) im-proves corporate productivity through a combination of research, community, tools, and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the

| ABOUT THE CONTRIBUTING ORGANIZATIONS |

best known companies in the world, i4cp draws upon one of the industry’s largest and most experienced research teams and executives-in-residence to produce more than 10,000 pages of rapid, reliable, and respected research annually, surrounding all facets of the management of people in organizations.

Additionally, i4cp identifies and analyzes the upcom-ing major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and “next practices” on these issues and trends. For more information, visit www.i4cp.com.

INTREPID LEARNING SOLUTIONS Intrepid Learning Solutions is a dedicated provider of award-winning learning solutions that drive business performance. Founded in 1999, Intrepid offers consulting, technology and managed learning services to companies worldwide. In addition, the company offers packaged holis-tic learning solutions that can be rapidly tailored to support individual learner preferences and broader business goals. For more information, visit www.intrepidls.com.

EXECUTIVE SUMMARY OF AN ASTD RESEARCH REPORT

| CONTACT |

ASTD Research tracks trends, informs decisions, and connects research to practice in the field of workplace learning and performance. ASTD Research conducts a wide variety of ongoing studies on topics of interest to the learning profession. Recently released studies include:

• Annual State of the Industry Report• Learning’s Role in Employee Engagement• Learning’s Role in Globally Dispersed Workforces• Tapping the Potential of Informal Learning• Talent Management: Practices and Opportunities• Executive Development: Strategic and

Tactical Approaches• The State of Sales Training

For more information about each study, as well as ASTD Research’s comprehensive benchmarking services, visit www.astd.org/research.

©2008 by the American Society for Training & Development. All rights reserved.

No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, contact copyright.com.

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| HOW TO ORDER | Research reports published by ASTD can be purchased by visiting our website at store.astd.org, by calling 800.628.2783 or 703.683.8100.

| MORE FROM ASTD RESEARCH |

LEARNING’S ROLE IN EMPLOYEE ENGAGEMENT investigates how organizations are addressing employee engagement, one of the most important corporate issues today. The study identifies the strategies and organizational factors most responsible for influencing employees

to become more engaged, with a specific emphasis on learning. Use this research data to determine what you can do to boost employee engagement in your organization.

For more information about this report click here

TALENT MANAGEMENT PRACTICES AND OPPORTUNITIES identifies how talent management is currently being used by a diverse range of organizations and lays out the best practices of an effective talent management program. Use this research data to improve your talent

management program or find out the best before starting one in your organization.

For more information about this report click here

LEARNING’S ROLE IN GLOBALLY DISPERSED WORKFORCES identifies the many ways that learning professionals can ease the transition to globalization by involving the learning function. Use this research data to determine what your organization can do to work through

the numerous challenges that go along with the expansion into global markets.

For more information about this report click here

STRATEGIC AND TACTICAL APPROACHES TO EXECUTIVE DEVELOPMENT is an in-depth look at the executive development practices of today’s organizations. With many firms struggling to find the right way to develop top-level leaders, this study helps to answer common questions

about the state of executive development.

For more information about this report click here

TAPPING THE POTENTIAL OF INFORMAL LEARNING helps today’s learning professionals gain insight into how informal learning works and how to improve its effectiveness. The study breaks the findings into six main categories that best explain how and why to harness the potentially

untapped power of informal learning.

For more information about this report click here

TRANSFORMING LEARNING WITH WEB 2.0 TECHNOLOGIES describes how Web 2.0 technologies are being used for learning in today’s organizations. The report looks at what technologies are gaining the most use in organizations and reviews the risks and rewards of

adopting Web 2.0 tools. Included are findings and recommendations to help companies leverage the next generation of collaboration and communication tools for learning and performance improvement.

For more information about this report click here

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| HOW TO ORDER | Research reports published by ASTD can be purchased by visiting our website at store.astd.org, by calling 800.628.2783 or 703.683.8100.

| MORE FROM ASTD RESEARCH |

THE STATE OF SALES TRAINING study explores how today’s organizations are approaching sales training and sheds light on opportunities that organizations are missing to optimize those approaches or consider new ones. The study will equip you with the statistics to inform

important sales training decisions, provide you with a background on the current sales training environment, and give you policy recommendations that can get you started on the road to success now.

For more information about this report click here

LEARNING IN TOUGH ECONOMIC TIMES: HOW CORPORATE LEARNING IS MEETING THE CHALLENGES The global recession weighs heavily on everyone’s mind. Most of us are cutting back and looking for ways to be more effective with fewer resources. Learning in

Tough Economic Times presents compelling information on best practices organizations are using to cope with financial uncertainty. This study provides real data, ideas, and tools that you can implement to be a strategic business partner and help position your organization for success in the recovery.

For more information about this report click here

THE VALUE OF EVALUATION: MAKING TRAINING EVALUATIONS MORE EFFECTIVE study explores the complex issue of learning evaluation, the techniques being used, barriers to effective implementation, and strategic uses of learning metrics. With greater scrutiny and emphasis on effectiveness, organizations continue to explore

ways to communicate and document the value of training and development they provide to employees. The data in this report can help many firms become more proficient in successful measurement of the learning function.

For more information about this report click here

THE RISE OF SOCIAL MEDIA ENHANCING COLLABORATION AND PRODUCTIVITY ACROSS GENERATIONS report explores the business case for supporting and using social media technologies from a learner’s point of view. This exclusive perspective provides business leaders with insight into

leveraging the power of social media tools. The report includes valuable results and recommendations to help executives make strategic decisions about social media that can positively affect organizational goals and growth.

For more information about this report click here

IMPROVING SUCCESSION PLANS: HARNESSING THE POWER OF LEARNING AND DEVELOPMENT explores the business case for succession planning and breaks down how companies are executing it. Most companies admit their succession planning efforts have significant room for improvement. This report is a

powerful tool for implementing meaningful change within organizations: the analysis leads to recommendations on the creation of metrics, candidate selection, and key practices to cope with barriers to effective plans.

For more information about this report click here