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Training. Assessing Training Needs Management objectives products, customers, relationships Sales force observation & survey time, problems, needs, successes, concerns, etc.. focus groups analysis Customer observation Company records (10-1)

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training
Training

Assessing Training Needs

  • Management objectives
    • products, customers, relationships
  • Sales force observation & survey
    • time, problems, needs, successes, concerns, etc..
    • focus groups analysis
  • Customer observation
  • Company records (10-1)
    • Trends & relationships: sales, new customers, turnover, calls per day, etc..
  • Setting objectives: skills vs. information
training1
Training

Assessing Training Needs

  • What other companies do (10-2 & 3)
  • Steps in performing training analysis (10-4)
slide3

Training

Evaluating Sales Training

Level One: Reactions Are trainees satisfied? This also

provides information so that the

parts they don’t like can be improved.

Level Two: Learning Did the training change attitudes,

increase knowledge, or improve the

skills of the trainees? This usually

requires testing before and after

the training.

slide4

Training

Evaluating Sales Training

Level Three Behavior Are salespeople using their knowledge

and skills on the job? This may be

measured in a variety of ways: asking

salespeople, sales manager observa-

tion of salespeople, and questioning

customers.

Level Four: Results What effect does the training have on

the company? The bottom line

results of training can include

increased sales, higher profits, more

new customers, and reducing costs.

training2
Training

In-Class Exercise 10-1

1.What special problems exist in this scenario?

2.What are some of the unstated problems that may exist in this situation?

3. If you were the sales manager, what additional directions would you give the marketing manager in preparation for presenting the training plan in the second scene?

4. Does the sales manager run any risks with respect to this training session?

training3
Training

In-Class Exercise 10-1

5. What will salespeople want to know about the new product?

6. What are the alternative approaches or pedagogy that you could use in training?

7. Give a detailed outline of how you would run this meeting. Include time segments for each part of the meeting.

slide7

Assess Setting Setting

Training Objectives Budget

Needs

What Where Training Trainers?

Topics? to Train? Methods?

Evaluating Training

Follow-Up Training

training4
Training

How much to spend on training?

Averages for new salespeople

$$$$Time

Consumer $5,513 4.2 months Industrial $8,913 4.1 months Service $8,014 4.1 months

Source: Dartnell Corporation: Sales Force Compensation Survey, 1996

table 10 1 cross tabulations from company records
Table 10-1 Cross-Tabulations from Company Records

Average Order

Size per New Customers Total Customers

Salesperson per Salesperson per Salesperson

Experience

Less than 2 year 392 21 86

2-5 years 593 29 145

5-10 years 565 5 152

Over 10 years 470 8 139

Regions

Northeast 528 6 140

Southeast 520 8 161

Midwest 512 18 107

Southwest 421 26 111

West 544 21 131

table 10 5 sales training evaluation practices
Table 10-5 Sales Training Evaluation Practices

Criteria Importance

Measure Type Rank

Trainee feedback Reaction 1

Supervisory Behavior 2

appraisal

Self-appraisal Behavior 3

Bottom-line Results 4

measures

Customer appraisal Behavior 5

training5
Training

Evaluating Sales Training

Experimental Design

Notation: O1 = Results before sales training

X1 = Sales training

O2 = Results after sales training

O2 - O1 = Difference in results

Experimental Group O1 X1 O2

Control Group O3 O4

Sales Training effect (O2 - O1 ) - (O4 - O3 )

building a sales training program
BUILDING A SALES TRAINING PROGRAM

1. Treat all employees as potential career employees.

2. Require regular re-training.

3. Spend time and money generously.

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

5. In times of crisis, increase, rather than decrease, the

training program.

steps in performing a training analysis
STEPS IN PERFORMING A TRAINING ANALYSIS

1. Interviewing key members or management to find out what changes are needed in performance

of the sales force.

2. Sent an anonymous questionnaire to customers and prospects asking:

  • What do you expect of a salesperson in this industry?
  • How do salespeople disappoint you?
  • Which company in this industry does the best selling job?
  • In what ways are its salespersons better?

3. Sent a confidential questionnaire to each salesperson asking:

  • What information do most of our salespersons need?
  • What information do you want to learn better?
  • What skills do most of our salespersons need to improve?
  • Other suggestions for ongoing training?

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

5. Interviewed sales supervisors.

6. Analyzed the information gathered in Steps 1 through 5 to determine trainable topics and separate them.

7. Discussed and agreed on training priorities with management.*

*James F. Carey, “Assess Your Personal Needs,” Sales and Marketing Management, (November, 1977),

Special Report.

table 10 2 average cost and training period for sales trainees
Table 10-2 Average Cost and Training Period for Sales Trainees

Consumer

Industrial

Service

Consumer

Industrial

Service

table 10 3 average cost and training period for veteran salespeople
Table 10-3 Average Cost and Training Period for Veteran Salespeople

Median spending

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

Million Million Million Million Million

Company size

training6
Training

Allocating training time

Average

  • Product knowledge 35%
  • Market/Indus Information 15
  • Company Orientation 10
  • Selling Techniques 30
  • Other topics 10

\

Total 100%

industry jargon
INDUSTRY JARGON

“What does HCFA say?”

“DRG’s are killing us.”

“Is this level II in the POL regs?”

“The LTC market’s future looks good.”

“The HME industry is changing rapidly.”

How about: Reflotrons

Spirometry

Holters

Oxygen Concentrators

Thoracic Catheter

industry jargon1
INDUSTRY JARGON

“What does HCFA say?”

“DRG’s are killing us.”

“Is this level II in the POL regs?”

“The LTC market’s future looks good.”

“The HME industry is changing rapidly.”

How about: Reflotrons

Spirometry

Holters

Oxygen Concentrators

Thoracic Catheter

ojt sales training
OJT SALES TRAINING

Eighty percent of a new field salesperson’s training should be focused on

developing customer profiles, digging out account survey data, and building

working relationships in the field. Fifteen percent of his time can then be

invested in learning about how your product or service is used by existing

customers. The field is the place to gain product knowledge, not from an

engineer or home office instructor.

Only 5% of a new field salesperson’s time, then, should be spent on

developing selling skills. Again, the place to do this is face-to-face with real

customers: setting and testing real precall objectives and asking for real

opportunities to do business. Understanding what has to be done to build selling

skills can be mastered in 15 minutes. Doing it takes years of actual, not simulated

practice.

Jack Falvey

Contributing Editor

Sales and marketing Management

Source: “To Develop The Best Salespeople, Let Them Do It Themselves,” Sales and Marketing Management,

(November 1988), p. 87.

table 10 2 average cost and training period for sales trainees1
Table 10-2 Average Cost and Training Period for Sales Trainees

Consumer

Industrial

Service

Consumer

Industrial

Service

table 10 3 average cost and training period for veteran salespeople1
Table 10-3 Average Cost and Training Period for Veteran Salespeople

Median spending

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

Million Million Million Million Million

Company size

training7
Training

Why train salespeople?

  • Reduce turnover - high among new staff
  • Improve customer relations
  • Better morale & confidence
  • Control - consistence message
  • Increased sales
determining training needs
Determining Training Needs*

68%

73%

60%

Judgement of:

Top Management

Sales Management

Training Department

Interview With:

Salespeople

Customers

59%

25%

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

Source: Robert Erffmeyer, K. Russ, and Joseph Hair, “Needs Assessment and Evaluation in Sales Training Programs,” Journal of Personal Selling and Sales Management, 11,1 (Winter, 1991), p. 21.

determining training needs continued
Determining Training NeedsContinued*

56%

Performance Measures:

Sales Volume

Customer Service

Other Measures:

Observation of

Salespeople

Attitude Surveys

51%

38%

28%

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

Source: Robert Erffmeyer, K. Russ, and Joseph Hair, “Needs Assessment and Evaluation in Sales Training Programs,” Journal of Personal Selling and Sales Management, 11,1 (Winter, 1991), p. 21.

evaluating training effectiveness
Evaluating Training Effectiveness*

86%

68%

Reactions:

Trainees

Supervisors

Learning:

Performance

Pre-vs. Post Training

Behaviors:

Supervisor’s Appraisal

Customer Appraisal

Results:

Bottom Line

63%

31%

64%

41%

40%

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

Source: Robert Erffmeyer, K. Russ, and Joseph Hair, “Needs Assessment and Evaluation in Sales Training Programs,” Journal of Personal Selling and Sales Management, 11,1 (Winter, 1991), p. 21.