Continual Development of theContinual Development of theSales Force: Sales TrainingSales Force: Sales Training

Module SixModule Six

Real World Sales TrainingReal World Sales TrainingAn Expert’s Viewpoint:An Expert’s Viewpoint:

Whirlpool developed a sales training program that mirrored Whirlpool developed a sales training program that mirrored MTV’s MTV’s The Real WorldThe Real World. National training manager Jackie . National training manager Jackie Seib helped come up with the idea of putting a dozen or so Seib helped come up with the idea of putting a dozen or so strangers (new salespeople) in a house full of Whirlpool strangers (new salespeople) in a house full of Whirlpool appliances. The new hires stay in the home for two appliances. The new hires stay in the home for two months, using the appliances and working with engineers months, using the appliances and working with engineers to learn how they work. Seib says “We really wanted them to learn how they work. Seib says “We really wanted them to understand the appliances as a consumer would, so to understand the appliances as a consumer would, so they can bring real-world stories about the appliances to they can bring real-world stories about the appliances to the sales floor.”the sales floor.”

ActionAction

Real World Sales TrainingReal World Sales TrainingAn Expert’s Viewpoint:An Expert’s Viewpoint:

The program’s impact on revenue has yet to be The program’s impact on revenue has yet to be determined, but it has had a positive effect on determined, but it has had a positive effect on employees. Of the first 40 salespeople to complete the employees. Of the first 40 salespeople to complete the program, 8 have been promoted—all attributing their program, 8 have been promoted—all attributing their success to the knowledge and confidence they received success to the knowledge and confidence they received as a result of the training. Even though the program as a result of the training. Even though the program costs a bit more than the two-week classroom version, costs a bit more than the two-week classroom version, Whirlpool believes that the investment is worth it.Whirlpool believes that the investment is worth it.

ResultResult

Role of Sales Training inRole of Sales Training inSales Force SocializationSales Force Socialization

• Initiation to Task — Initiation to Task — The degree to which a sales The degree to which a sales trainee feels competent and accepted as a working trainee feels competent and accepted as a working partnerpartner

• Role Definition — Role Definition — An understanding of what An understanding of what tasks are to be performed, what the priorities of the tasks are to be performed, what the priorities of the tasks are, and how time should be allocated among tasks are, and how time should be allocated among the tasks.the tasks.

Sales training helps socialize the new hires, Sales training helps socialize the new hires, providing them with a positive:providing them with a positive:

Sales Training as a Crucial InvestmentSales Training as a Crucial Investment

• Most organizations see a link between Most organizations see a link between sales training and salesperson sales training and salesperson productivity productivity (training pays off)(training pays off)

• U.S. companies spend approximately U.S. companies spend approximately $8.7 billion annually on training$8.7 billion annually on training

• The need for sales training is continualThe need for sales training is continual

• Sales managers play a crucial role in the Sales managers play a crucial role in the training processtraining process

Firms that trainFirms that train

SalesInstituteSalesInstitute• www.salesinstitute.comwww.salesinstitute.com

• STI has trained STI has trained outside sales people outside sales people and and sales managerssales managers in a in a variety of industries for the past 42 years. See variety of industries for the past 42 years. See Partial list of ClientsPartial list of Clients. . Our experienced trainers, with backgrounds in a wide variety of Our experienced trainers, with backgrounds in a wide variety of specialties, conduct the sessions. Our core training topics are listed specialties, conduct the sessions. Our core training topics are listed under under QUAD-TRAK Consultative Selling ProgramQUAD-TRAK Consultative Selling Program and and Annual Sales MeetingsAnnual Sales Meetings. Pricing is based on the number of . Pricing is based on the number of participants and the number of days. A typical training will cost participants and the number of days. A typical training will cost $3,500 per day for up to 15 participants, plus travel and $3,500 per day for up to 15 participants, plus travel and customization expense.customization expense.

Managing the Sales Training ProcessManaging the Sales Training Process

Assess Sales Training NeedsAssess Sales Training Needs

Set Training ObjectivesSet Training Objectives

Evaluate Training AlternativesEvaluate Training Alternatives

Design Sales Training ProgramDesign Sales Training Program

Perform Sales TrainingPerform Sales Training

Conduct Follow-Up and EvaluationConduct Follow-Up and Evaluation

Assess Training NeedsAssess Training Needs

• Determine desired skill set and levels of Determine desired skill set and levels of performanceperformance

• Assess salesperson’s actual skill set and Assess salesperson’s actual skill set and levels of performancelevels of performance

• Analyze gap between desired and actual Analyze gap between desired and actual to determine training needsto determine training needs

Assess Training Needs: MethodsAssess Training Needs: Methods

• Sales Force AuditSales Force Audit• Performance TestingPerformance Testing• ObservationObservation• Salesforce SurveySalesforce Survey• Customer SurveyCustomer Survey• Job analysisJob analysis

Typical Sales Training Needs Typical Sales Training Needs

• Sales Techniques:Sales Techniques:Salespeople have an ongoing need to learn Salespeople have an ongoing need to learn “how to sell”“how to sell”

• Product Knowledge:Product Knowledge:Salespeople must know their product benefits, Salespeople must know their product benefits, applications, competitive strengths, and applications, competitive strengths, and limitationslimitations

Typical Sales Training Needs Typical Sales Training Needs

• Customer Knowledge:Customer Knowledge:Salespeople should know their customer Salespeople should know their customer needs, buying motives, buying procedures, needs, buying motives, buying procedures, and personalities.and personalities.

• Competitive Knowledge:Competitive Knowledge:Salespeople must know competitive offerings Salespeople must know competitive offerings in terms of strengths and weaknesses.in terms of strengths and weaknesses.

Typical Sales Training Needs Typical Sales Training Needs

• Time Time andand Territory Management: Territory Management: Salespeople should learn to maximum work Salespeople should learn to maximum work efficiency.efficiency.

Common MistakesCommon MistakesSales Training Addresses Sales Training Addresses

• Ineffective listening and questioningIneffective listening and questioning

• Failure to build rapport and trustFailure to build rapport and trust

• Poor job of prospecting for new accountsPoor job of prospecting for new accounts

• Lack of preplanning of sales callsLack of preplanning of sales calls

• Reluctance to make cold callsReluctance to make cold calls(without an appointment)(without an appointment)

Common MistakesCommon MistakesSales Training Addresses Sales Training Addresses

• Lack of sales strategies for different Lack of sales strategies for different accountsaccounts

• Failure to match call frequency with Failure to match call frequency with account potentialaccount potential

• Spending too much time with old Spending too much time with old customerscustomers

Common MistakesCommon MistakesSales Training Addresses Sales Training Addresses

• Over-controlling the sales callOver-controlling the sales call

• Failure to respond to customers’ needs Failure to respond to customers’ needs with benefitswith benefits

• Giving benefits before clarifying Giving benefits before clarifying customers’ needscustomers’ needs

• Ineffective handling of negative attitudesIneffective handling of negative attitudes

• Failure to effectively confirm the saleFailure to effectively confirm the sale

Training ObjectivesTraining Objectives

• Increase sales or profitsIncrease sales or profits

• Create positive attitudes and improve Create positive attitudes and improve salesforce moralesalesforce morale

• Assist in sales force socializationAssist in sales force socialization

• Reduce role conflict and ambiguityReduce role conflict and ambiguity

Training ObjectivesTraining Objectives

• Introduce new products, markets, and Introduce new products, markets, and promotional programspromotional programs

• Develop salespeople for future Develop salespeople for future management positionsmanagement positions

• Ensure awareness of ethical and legal Ensure awareness of ethical and legal responsibilitiesresponsibilities

Training ObjectivesTraining Objectives

• Teach administrative proceduresTeach administrative procedures• Ensure competence in the use of sales Ensure competence in the use of sales

and sales support toolsand sales support tools• Minimize sales force turnover rateMinimize sales force turnover rate• Prepare new salespeople for assignment Prepare new salespeople for assignment

to a sales territoryto a sales territory• Improve teamwork & cooperative effortsImprove teamwork & cooperative efforts

Evaluate Training AlternativesEvaluate Training Alternatives

• Selecting Sales TrainersSelecting Sales Trainers– InternalInternal– ExternalExternal

• Selecting Sales Training LocationsSelecting Sales Training Locations– Decentralized (e.g., district or regional offices)Decentralized (e.g., district or regional offices)– Centralized (e.g., corporate headquarter)Centralized (e.g., corporate headquarter)

Evaluate Training AlternativesEvaluate Training Alternatives

• Selecting Sales Training MethodsSelecting Sales Training Methods– Classroom/Conference TrainingClassroom/Conference Training– On-the-job Training (OJT)On-the-job Training (OJT)

• MentoringMentoring• Job rotationJob rotation

Evaluate Training AlternativesEvaluate Training Alternatives

• Selecting Sales Training MethodsSelecting Sales Training Methods– Behavioral SimulationsBehavioral Simulations– Absorption TrainingAbsorption Training

• Selecting Sales Training MediaSelecting Sales Training Media– InternetInternet– Computer-Based (e.g., CD-ROM)Computer-Based (e.g., CD-ROM)– Paper-BasedPaper-Based

Design the Sales Training ProgramDesign the Sales Training Program

• Finalize the Training ProgramFinalize the Training Program• Schedule Training SessionsSchedule Training Sessions• Make Necessary Travel ArrangementsMake Necessary Travel Arrangements• Make Necessary Accommodation Make Necessary Accommodation

ArrangementsArrangements

Perform Sales TrainingPerform Sales Training

As the training is being conducted, the As the training is being conducted, the sales manager’s primary responsibility sales manager’s primary responsibility is to monitor progress of the trainees is to monitor progress of the trainees and to ensure adequate presentation of and to ensure adequate presentation of the training topics.the training topics.

Conduct Follow-Up and EvaluationConduct Follow-Up and Evaluation

It is always difficult to measure the It is always difficult to measure the effectiveness of sales training. effectiveness of sales training. Nevertheless, a reasonable attempt must Nevertheless, a reasonable attempt must be made to assess whether current be made to assess whether current training expenditures are worthwhile and training expenditures are worthwhile and whether future modification is warranted.whether future modification is warranted.

How to use emailHow to use email

• “The insurance company I work for maintains an internal mailing list devoted to one of our customers. One day, one of our sales reps sent an e-mail to everyone in my group asking about a policy we were selling. I replied that we could easily convince the customer to buy it — even though the customer didn’t need it.

• Unfortunately, I clicked Reply All. Hiding in that massive list was the customer’s e-mail address. We didn’t make the sale.”