BENEFITS OF IN-COMPANY SALES TRAINING

Whilst there are many factors that contribute towards business success, research suggests that a well trained sales force leads to an improvement in sales performance of between 15-20%. Such improvements clearly demonstrate that sales training is not a luxury, it is an essential part of sales success. After all, to achieve the right results your sales people must perform the right actions and training is all about developing those right actions.

The very nature of selling means that sales people are subjected to a high level of rejection and negativity, which for all but a very few will manifest itself in a variety of ways resulting in them not performing to their maximum potential.

Unfortunately only a tiny proportion of sales people actually seek to actively improve their own sales performance. For example, how many of your sales people have requested that they are allowed to attend a training course in the last 6 months, or have created their own self-development plan? Most do not, partly because they feel that doing this would expose their weaknesses and make others question whether they can do the job for which they are employed.

Looking at it another way, above average sales performance from a sales force is virtually impossible without the help of targeted sales training. Proof can found in any sales team that has not received any such training.

Typically, you only require an increase of ½% in performance to profit from sales training. No matter how good the current skill levels are, there is always room for improvement.

This example explains:

• Average Sales Person Salary £26,500 p.a.
• Average total cost of employment £66,250 p.a.
• Average profit target £167,000 p.a.
• Average cost of a two-day in-company training course per person £500
• Increase in sales performance required to profit over the year from a two-day training programme is 0.3% (0.3% of £167,000 = £501)

Example return on investment (ROI) figures based on a 1%, 5%, 10% & 15% increase in sales performance:

1% increase. £167,000 x 1% = £1,670 – £500 = £1,170 p.a.
5% increase. £167,000 x 5% = £8,350 – £500 = £7,850 p.a.
10% increase. £167,000 x 10% = £16,700 – £500 = £16,200 p.a.
15% increase. £167,000 x 15% = £25,050 – £500 = £24,550 p.a.

Even so, training can still be a waste of time and money if the training process is not managed carefully so that that the learning points and subsequent action plans are implemented in the work place.

There are many ways that the process post-training can be managed, such as regular personal development plan reviews or on-the-job coaching. This can be done either by line management or by Spearhead Training through its advanced Sales Performance Management System.

The primary justifications for training are:

1. To maximise the company’s strength in the market place through the correct actions of the sales force.

2. To improve sales performance through the following:
- Activity levels
- Sales volumes
- Sales size
- Length of sales cycle
- Closing rates
- Sales negotiated (Only a small increase in the price negotiated has a big impact on profitability. E.g. based on a margin of 10%. A 1% increase in the price agreed increases profit by 10%.)

3. To provide a basis on which a planned development programme can be built, to gain maximum utilisation of personnel.

4. To develop a controlled and disciplined workforce, enabling the company to choose its market direction thus capitalising on market opportunities.

5. To provide an opportunity for interchange of views and ideas, enabling everyone to use “best practice.”

6. To provide a positive investment in the sales force to aid motivation and staff retention. The average cost of recruiting and placing a salesperson is currently running at £9,000 per sales person.

7. To build confidence, increase the “buy-in” to new concepts and to allow the exchange of and doubts and concerns that they may have.

8. To refresh, revitalise and remind the sales force of “best practice.”

From our experience, two other considerations emerge:

1. A well trained sales force is much more likely to have, as a group, right positive mental attitude to the job, the company, and most important of all, the customer.

2. Training, by its very nature, helps to define the track on which salespeople should follow if they are to be effective. It also provides valuable thinking time which is rarely on offer in the field and the opportunity to share ideas and views with their peers.

Click on the links to view our In-company Sales Training Courses or Open Sales Training Courses