Sales training is a critical investment for businesses aiming to enhance their sales team's performance. However, the approach to sales training varies widely among companies, with some conducting regular, structured training and others opting for more sporadic sessions. Given the significant costs associated with sales training, including the opportunity cost of time salespeople could spend selling, it's crucial to meticulously plan, organize, and execute these programs. This article delves into the key considerations for sales training, from budgeting and planning to delivery and evaluation, and how these processes are managed across different sizes of businesses.
In larger organizations, the sales manager and/or an in-house sales trainer typically make decisions about the sales training program. In contrast, smaller companies often rely on the Managing Director or a Senior Executive to oversee training initiatives.
The budget for sales training is set differently depending on the size of the company. In larger firms, about one-third of the budget is determined by business management, with the training department playing a significant role, followed by sales managers. Smaller companies usually see business management taking the lead on budgeting, with sales managers also involved. Technical competence is a key factor in budgeting for large businesses, while smaller ones adhere to a more hierarchical approach.
In over 90% of large businesses, the responsibility for planning and organizing sales training falls to the training department. Smaller businesses often assign this task to either business or sales management. Surprisingly, there is frequently little collaboration between the parties involved in this crucial process.
Large companies typically have in-house trainers conduct their sales training, with sales managers often providing support. Smaller companies usually rely on Sales Managers to deliver training. However, there is a growing trend of companies of all sizes seeking external suppliers for structured sales training programs.
Effective sales training requires trainers to gather feedback from sales leadership at every stage. While this may initially increase planning costs, enhanced communication between sales managers and trainers leads to better-prepared and more targeted training sessions. Intensive questioning of those involved in the training is essential.
It is imperative for business management, sales management, training departments, and training suppliers to collaboratively establish specific, measurable training goals and outcomes. Aligning on these objectives ensures that all parties are working towards the same end and that the training is designed to meet these goals. Once set, these goals should be communicated to all training participants, ideally by their sales manager, before the session begins.
For training courses with varying levels, it is crucial to ensure that participants attend the appropriate level. This requires assessing the participants' knowledge beforehand, typically by the line manager in partnership with the trainer. This assessment can also be applied to specific topics within a general course to focus on areas for improvement.
Despite the importance and cost of sales training, business management rarely gets involved in assessing its effectiveness. The challenge lies in determining the true impact of training beyond just observing changes in a salesperson's turnover. A four-stage assessment procedure, over 30 years old and increasingly used in budget-conscious times, considers the following levels:
This systematic evaluation not only measures the success of the training but also supports the approval of future training budgets by demonstrating the return on investment.
Sales training is a significant investment that requires careful planning, execution, and evaluation to ensure its effectiveness. By involving the right decision-makers, setting clear goals, selecting appropriate participants, and systematically assessing outcomes, businesses can maximize the benefits of their sales training programs and justify their investment.
For further insights into effective sales training strategies, consider exploring resources from the Association for Talent Development (ATD) or reading up on the latest industry trends through Harvard Business Review.
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