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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)

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Training

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  1. 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

  2. Training Assessing Training Needs • What other companies do (10-2 & 3) • Steps in performing training analysis (10-4)

  3. 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.

  4. 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.

  5. 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?

  6. 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.

  7. Assess Setting Setting Training Objectives Budget Needs What Where Training Trainers? Topics? to Train? Methods? Evaluating Training Follow-Up Training

  8. 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

  9. 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

  10. 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

  11. 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 )

  12. 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.

  13. 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.

  14. Table 10-2 Average Cost and Training Period for Sales Trainees Consumer Industrial Service Consumer Industrial Service

  15. 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

  16. Training Allocating training time Average • Product knowledge 35% • Market/Indus Information 15 • Company Orientation 10 • Selling Techniques 30 • Other topics 10 \ Total 100%

  17. 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

  18. 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

  19. 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.

  20. Table 10-2 Average Cost and Training Period for Sales Trainees Consumer Industrial Service Consumer Industrial Service

  21. 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

  22. Training Why train salespeople? • Reduce turnover - high among new staff • Improve customer relations • Better morale & confidence • Control - consistence message • Increased sales

  23. 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.

  24. 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.

  25. 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.

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