1. American companies spend more than $50 billionAmerican companies spend more than $50 billion –milyar--–milyar--
annually on training.annually on training.
Sales Training: Objectives, Techniques, and Evaluation
2. TTop 10 training organizations as determined byop 10 training organizations as determined by
““Training magazineTraining magazine””..
Sales Training: Objectives, Techniques, and Evaluation
3. National sales manager wantsNational sales manager wants to develop closeto develop close
relationships with customers.
Sales Training: Objectives, Techniques, and Evaluation
4. Market managers are interested in how much training salesMarket managers are interested in how much training sales
rep.rep. receive in dealing with the complex customer problemsreceive in dealing with the complex customer problems
Sales Training: Objectives, Techniques, and Evaluation
5. Product managers, hope the salespeople have been well schooled inProduct managers, hope the salespeople have been well schooled in
product knowledge, specifications, and applications.product knowledge, specifications, and applications.
Sales Training: Objectives, Techniques, and Evaluation
6. When determining sales training needs, three issues mustWhen determining sales training needs, three issues must
be considered:be considered:
Sales Training: Objectives, Techniques, and Evaluation
1. W1. Who should be trained?ho should be trained?
2.2. What should be the trainingWhat should be the training
primary emphasis?primary emphasis?
3.3. How should the trainingHow should the training
process be structured?process be structured?
On-the-job training andOn-the-job training and
experience?experience?
Formal and more consistentFormal and more consistent
centralized program?centralized program?
Web-based?Web-based?
Instructor-based?Instructor-based?
7. WWho should be trained?ho should be trained?
Sales Training: Objectives, Techniques, and Evaluation
New One Old OneNew One Old One
14. ObstaclesObstacles (Engel)(Engel) to Introducing Trainingto Introducing Training
THE DEVELOPMENT OF SALES TRAINING PROGRAMS
• Top management not dedicated to sales
training
• Lack of buy-in from frontline sales
managers and salespeople
• Salespeople’s lack of understanding of what
training is supposed to accomplish
• Salespeople’s lack of understanding
regarding application of training to
everyday tasks
15. management expects sales training to solve all themanagement expects sales training to solve all the
company’s sales problemscompany’s sales problems when, in fact, the problem withwhen, in fact, the problem with
sales might not even be connected with the sales force (for example,sales might not even be connected with the sales force (for example,
poor product quality or an inefficient supply chain that is unable topoor product quality or an inefficient supply chain that is unable to
deliver products on time)deliver products on time)
THE DEVELOPMENT OF SALES TRAINING PROGRAMS
16. If the sales problems are not resolved, budget-cutting activities oftenIf the sales problems are not resolved, budget-cutting activities often
start with the sales training programstart with the sales training program..
THE DEVELOPMENT OF SALES TRAINING PROGRAMS
17. 1 . S1 . Sales training analysisales training analysis
Creating Credibility in Sales Training
One way to do this is to travel with sales reps, observe
and ask them what they need to know to perform their
jobs more effectively. “Field sales managers”
18. 2 . Determine Objectives2 . Determine Objectives
Creating Credibility in Sales Training
The objectives may include learning about new products,
sales techniques, or company procedures. Keep it sample.
19. 3 . Develop and Implement Program3 . Develop and Implement Program
Creating Credibility in Sales Training
At this point, a decision has to be made concerning developing the training program or
hiring an outside organization to conduct it
20. 4 . Evaluate and Review Program4 . Evaluate and Review Program
Creating Credibility in Sales Training
• What do we want to measure?
• When do we want to measure?
• How do we do it? What measuring tools are available?
This is why field sales managersare an important link:
They can provide follow-up and feedback information on
the
salesperson’s ability to retain and use sales training takeaways in the field. The
field sales managers can also coach the salesperson if there is a need for
follow-up.
21. TRAINING NEW SALES RECRUITSTRAINING NEW SALES RECRUITS
SALES TRAINING
• Companies with less than $5 million in annual sales are
spending more on sales training per new hire - $5,500
worth of training per salesperson.
• Training in smaller companies has increased from 3.3
months to 4.4 months.
• Smaller companies are placing more emphasis on training
than several years ago.
• Companies are spending time and money on training
experienced salespeople
• Companies with more than $5 million in annual sales, are
spending less money on training
22. TRAINING EXPERIENCED SALES PERSONNELTRAINING EXPERIENCED SALES PERSONNEL
SALES TRAINING
• Experienced sales reps are given, on average,
32.5 hours of ongoing training per year at a cost
of $4,032 per rep
• Continuing increasing amounts of training
reflects a commitment to provide ongoing
learning opportunities for senior salespeople
• Companies are spending an increasing amount
of time on product training and less on training
in selling skills
23. SALES TRAINING TOPICS
SALES TRAINING TOPICS
• Product or service knowledge
• Market/Industry orientation
• Company orientation
• Selling skills
• Time and territory management
• Legal and ethical issues
• Technology
• Specialized topics
24. Product or service knowledgeProduct or service knowledge
SALES TRAINING TOPICS
• Critical information for rational
decision-making
– Company’s product specifications
– Common product uses/misuses
• Competitive products
comparison on
– Price
– Construction
– Performance
– Compatibility
• Technical products require more
time on product knowledge
training
25. Market/Industry orientationMarket/Industry orientation
SALES TRAINING TOPICS
• Industry fit into overall
economy
• Knowledge of industry and
economy
• Economic fluctuations that
affect buying behavior and
require adaptive selling
techniques
• Customers' buying policies,
patterns and preferences in
light of competition
• Customers' customers needs
• Wholesaler and retailer needs
26. Company orientationCompany orientation
SALES TRAINING TOPICS
• Company polices that affect
their selling activities
– Personnel
– Structure
– Benefits
• Handling customer requests
for price adjustments,
product modifications, faster
delivery, different credit
terms
• Sales manuals
– Hard copy, online
– Product information
– Company policy information
27. Time and territory managementTime and territory management
SALES TRAINING TOPICS
• Sales trainees need to learn to
manage time and territories
• Time spent training out of the field is
costly
• 80/20 rule applies:
– 20% of the customers account for
– 80% of the business and
– Require the same proportion of time and
attention
28. Legal and ethical issuesLegal and ethical issues
SALES TRAINING TOPICS
• Federal law dictates corporate action or
avoidance of action in areas of marketing,
sales and pricing
• Sales personnel need to understand the
federal, state and local laws that constrain
their selling activities
• Statements made by salespeople carry both
legal and ethical implications
29. TechnologyTechnology
SALES TRAINING TOPICS
• Notebook computers
– Presentations
– Connecting to company intranet or extranet
– Delivering documentation quickly and accurately
• Home offices eliminate the need to go to another
office
• Salesperson can be almost totally self-sufficient
with
– High-speed network connection
– Computer
– Printer
– Cell phone
• Effective computer use affords sales personnel
more face-to-face customer contact time
• Effective use requires training
30. Specialized topicsSpecialized topics
SALES TRAINING TOPICS
• Specialized, job-tailored training
most effective
• Sample topics;
– Price negotiations
– Trade show effectiveness
– Reading body language
33. Creative Sales TrainingCreative Sales Training
• Effective training can take place beyond the
classroom or computer
• Requirements
– Focus on knowledge, selling skills for success
• Examples
– Boot camps
– Cooking classes
34. Keys for Effective OJTKeys for Effective OJT
• Teaming - bring together
people with different skills
• Meetings - set aside times when
employees can get together
• Customer interaction - include
customer feedback as part of
learning process
• Mentoring - provide informal
mechanism for new salespeople
to learn from more experienced
ones
• Peer-to-peer communication -
create opportunities for mutual
learning among salespeople
On-the-Job Training
“learning by doing”
35. Classroom TrainingClassroom Training
• Advantages
– Standard briefings in
• Product knowledge
• Company polices
• Customer and market characteristics
• Selling skills
– Formal training sessions save executive time
• Disadvantages
– Expensive
– Time-consuming
– Too much material = less retention
• Role playing a popular
technique
36. Electronic Training MethodsElectronic Training Methods
• Online training > $18billion industry (2009)
• IBM plans 35% sales training to be over Internet
• CD-ROM currently #1 delivery method
• 30% of server-based training over intranets
• Effectiveness not well-documented
• Not likely to eliminate one-on-one training
37. Measuring the Costs and BenefitsMeasuring the Costs and Benefits
• Sales training consumes large time, budget
and support resources
• Relationship between sales training and
revenue is difficult to measure
• Relationship between sales training and
other broad objectives difficult to measure
38. Training Road BlocksTraining Road Blocks
• Busy, tired salespeople are not
open to learning new skills
• Conflicting methods and
philosophies are taught at
each session
• The training isn’t relevant to
the company’s pressing needs
• The training format doesn’t fit
the need
• E-learning is overused, or used
in wrong situations
• There’s no follow-up after
training
39. Sales Training CostsSales Training Costs
• Training funds are often allocated with little regard
for results
• Results and benefits are difficult to measure
• Difficult to isolate training impact from
– Economic conditions
– Environmental changes
– Seasonal trends
– Competitive activity
– Etc.
40. Measuring Broad BenefitsMeasuring Broad Benefits
• Improved morale
• Lower turnover
• Higher customer satisfaction
• Measuring changes in skills, reactions and learning
assists both new and experienced sales personnel
41. • Salary – a fixed sum of money paid at regular intervals
• Incentive Payments (TEŞVİKLER)
– Commission – a payment based on short-term results, usually a dollar or unit
sales volume
– Bonus – a payment made at management’s discretion for achieving or
surpassing some set level of performance
• Quota - often the minimum requirement for a salesperson to earn a
bonus
• Sales contests – encourage extra effort aimed at specific short-term
objectives
• Benefits - medical and disability insurance, life insurance, retirement
plan
• Non-financial incentives - opportunities for promotion or various types
of recognition for performance
Salesperson Compensation and IncentivesSalesperson Compensation and Incentives
42. Components and objectives of FinancialComponents and objectives of Financial
compensation Planscompensation Plans
43. Compensation Methods for SalespeopleCompensation Methods for Salespeople
No incentive
Requires close
supervision
Selling
expenses
remain same
during sales
declines
Maximum
security
Control over
reps
Easy to
administer
Predictable
expenses
New sales reps
New sales
territories
Many required
nonselling
activities
Straight Salary
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
No incentive
Requires close
supervision
Selling
expenses
remain same
during sales
declines
Maximum
security
Control over
reps
Easy to
administer
Predictable
expenses
New sales reps
New sales
territories
Many required
nonselling
activities
Straight Salary
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
44. Little security
Little control
over reps
Reps may
provide
inadequate
service to
smaller
accounts
Selling costs
less predictable
Maximum
incentive
Managers can
encourage sales
of certain items
Selling
expenses relate
directly to selling
resources
Highly
aggressive
selling
Minimal required
nonselling tasks
When company
can’t closely
control sales
force
Straight
Commission
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
Little security
Little control
over reps
Reps may
provide
inadequate
service to
smaller
accounts
Selling costs
less predictable
Maximum
incentive
Managers can
encourage sales
of certain items
Selling
expenses relate
directly to selling
resources
Highly
aggressive
selling
Minimal required
nonselling tasks
When company
can’t closely
control sales
force
Straight
Commission
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
Compensation Methods for SalespeopleCompensation Methods for Salespeople
45. Selling
expenses are
less predictable
May be difficult
to administer
Some security
Some incentive
Selling
expenses vary
with revenue
Manager has
some control
over nonselling
activities
Similar sales
potential across
territories
When company
wants to offer
incentive but
maintain some
control
Combination
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
Selling
expenses are
less predictable
May be difficult
to administer
Some security
Some incentive
Selling
expenses vary
with revenue
Manager has
some control
over nonselling
activities
Similar sales
potential across
territories
When company
wants to offer
incentive but
maintain some
control
Combination
DisadvantagesAdvantagesEspecially
Useful For
Compensation
Method
Compensation Methods for SalespeopleCompensation Methods for Salespeople
46. Combination PlansCombination Plans
• Offer a base salary plus some proportion of
incentive pay
• Most popular form of compensation
• Well-suited for relationship selling by
compensating for nonselling activities while
providing incentives to motivate sales
47. Combination PlansCombination Plans
When the salesperson’s selling skill is the key to sales success,
the incentive portion of compensation generally should be
relatively large.
However, when the product has been presold through
advertising and the salesperson is largely an order taker, or
when the salesperson’s job involves a large proportion of
missionary or customer service work, the incentive
component should be relatively small.
48. Design Questions for Combination PlansDesign Questions for Combination Plans
• Appropriate size of incentive relative to base salary?
• Should ceiling be imposed on incentive earnings?
• When should the sale be credited?
• Should team incentives be used? How?
• How often should incentive payments be made?
49. Sales ContestsSales Contests
• Short-term incentive programs to accomplish
specific objectives
• Winners receive prizes, recognition, sense of
accomplishment
• Successful contests require:
– Clearly defined, specific objectives
– An exciting theme
– Reasonable probability of rewards for all
– Attractive rewards
– Promotion and follow-through
50. Structuring Effective Sales ContestsStructuring Effective Sales Contests
• Prize structure :Contest
rewards can take the
form of cash,
merchandise, or travel.
– Prize value
• Unique
• Rank-ordered
– Number of prize winners
• > 1
• Not so large incentive is
lessened
– Contest structure will
be unique for each
situation
51. Criticisms of Sales ContestsCriticisms of Sales Contests
• Salespeople may borrow sales from another
period to increase sales during contest
period
• Poorly administered contests can hurt
morale
52. Nonfinancial RewardsNonfinancial Rewards
• Recognition makes
peers and superiors
aware of outstanding
performance
• Effective recognition
programs:
– Offer everyone a
reasonable chance of
winning
– Recognize best
performers across
several dimensions
53. Expense AccountsExpense Accounts
• Types
– Direct reimbursementGERİÖDEME – of all
“allowable and reasonable” expenses
– Limited reimbursement– sets expense limits by-item
(such as a policy that limits reimbursement for restaurant meals to $40 per
person)
– No reimbursement– salespeople covers all expenses;
usually combined with higher total compensation
—travel, lodging, meals, and entertaining
customers
54. Rewarding A While Hoping for B?Rewarding A While Hoping for B?
• Straight commission may work for transactional
selling, but…
• Relationship selling is more complex; requires
– Operating within a team
– Securing, building, long-term relationship with profitable
customers
• Organizations must reward these additional
behaviors