Topic 6 Developing the Salesforce - Training

Under this topic you will be looking at the continual development of the Salesforce through training. Training for any organization’s Salesforce would be in the following area;

·         Role of Sales Training in Salesforce Socialization.

·         Sales Training as a Crucial Investment.

·         Managing the Sales Training Process.

·         Ethical and Legal Issues.

Today’s salespeople must be prepared to meet the demands of value-conscious customers. Salespeople must do their part by providing solutions to problems and meeting service requirements expected to satisfy customer needs. Proper training can prepare salespeople to meet these challenges.

Role of Sales Training in Salesforce Socialization

Salesforce Socialization refers to the process by which salespeople acquire the knowledge, skills, and values essential to perform their jobs.

Training plays a key role in this process. Newly hired salespeople usually receive a company orientation designed to familiarize them with company history, policies, facilities, procedures, and key people with whom salespeople interact.

Some firms go well beyond a perfunctory company orientation in an effort to enhance Salesforce socialization.

During initial sales training, it is hoped that each Salesforce member will experience a positive initiation to task as well as satisfactory role definition.

·         Initiation to task – The degree to which a sales trainee feels competent and accepted as a working partner.

—  Role Definition – An understanding of what tasks are to be performed, what the priorities of the tasks are, and how time should be allocated among the tasks.

—  Trainees who have been properly recruited and trained tend to be more confident on the job and have fewer problems with job conflicts, leading to higher job satisfaction, involvement, commitment, and performance.

—  Studies have shown the correlation between positive relationships between salespeople’s job related attitude and performances.

—  Newly hired salespeople should be extremely interested in learning about their jobs, peers, and supervisors. To do this more extensive socialization should be carried out besides the basic orientation.

Sales Training As A Crucial Investment

The importance of sales training is achieving the highest level of sales performance. A comprehensive review of sales management research concludes that whom one recruits is important but it is probably not as important in determining Salesforce performance as what sales managers do with the recruits – and to the recruits- after they have been hired.

Most organizations have a need for sales training of some type because of inadequacies of current training programs and in parts because new salespeople join the organization on a regular basis. Thus an ongoing need exists to conduct sales training on a continual basis to improve Salesforce performance and also due to the continued changes in the sales environment.

Companies views training as an important means for protecting their investment in their Salesforce. Research have shown that training generally pays off in term of improvement in Salesforce productivity.

US companies spend approximately $7.8 billion annually to provide salespeople with training and devote several hours per year to the average salesperson. One aspect of the investment in their sales training is the amount of time required of the sales manager.

Usually sales managers are involved not only in the big picture of planning but also in the time-consuming details of implementing training such as the following; 

1. Arranging for salespeople to work with key personnel in various departments in the firm to familiarize them with the functions of those departments
2. Selecting literature, sales aids, and materials for study
3. Enrolling salespeople in professional workshops
4. Accompanying salespeople in the field to critique their sales behavior and reinforce other training
5. Conducting periodic training meetings and professional training conferences. 

Sales training is expensive, and sales managers should take special care to see that time and money. One aspect of the investment in their sales training are wisely spent. 

Managing the Sales Training Process

The sales training process is depicted as six interrelated steps.

• Sales Training Needs - The purpose of sales training needs assessment is to compare the specific performance-related skills, attitudes, perceptions, and behavior required for Salesforce success with the state of readiness of the Salesforce.
• Such as assessment usually reveals a need for changing or reinforcing one or more determinants of Salesforce performance.
• Needs assessment requires that sales managers consider the training appropriate for both sales trainees and regular salespeople.
• A sales trainee is an entry-level salesperson who is learning the company’s products, services, and policies in preparation for a regular sales assignment.
• Entry-level salespeople may need basic training in sales techniques, whereas experienced salespeople could benefit from training in advanced sales techniques. PAGE 157
• Methods of Needs Assessment. 

Salesforce audit – Includes an appraisal of all Salesforce activities and the environment in which the Salesforce operates. Some questions need to be asked are;

1.      Is the training program adequate in light of objectives and resources?

2.      Does the training program need revision?

3.      Is an ongoing training program available for senior salespeople?

4.      Does the training program positively contribute to the socialization of sales trainees? 

Performance Testing – Helps determine training needs. This method specifies the evaluation of particular tasks or skills of the Salesforce.

Example: Salespeople may be given periodic examination on product knowledge, to check retention rates and cover areas for retraining.

Observation – First level sales managers spend a considerable amount of time in the field working with salespeople, acting as a salesperson or as a member of a sales team. Through such field trips, sales managers often observe the need for particular sales training.

Salesforce survey – The Salesforce may be surveyed in an attempt to isolate sales training needs. The task of assessing training needs may become more complex than if sales management alone determines training need.

Customer survey – This method is carried with the intention of defining customer expectation. It helps determine how competitive the Salesforce is compared with other Salesforce in the industry.

Job Analysis – Is an investigation of the task, duties and responsibilities of the sales job. Because sales jobs may vary within the same Salesforce, job analysis may also help in determining individualized training needs.

Typical Sales Training Needs – Sales Techniques

·         Researchers have found common mistakes:

·         Ineffective listening and questioning.

·         Failure to build rapport and trust

·         Poor job of prospecting for new accounts.

·         Lack of preplanning of sales calls.

·         Reluctance to make cold calls (without an appointment.

·         Lack of sales strategies for different accounts.

·         Failure to match call frequency with account potential.

·         Spending too much time with old customers.

·         Over controlling the sales call.

·         Failure to respond to customers’ need with related benefits.

·         Giving benefits before clarifying customers’ needs.

·         Ineffective handling of negative attitude.

·         Failure to effectively confirm the sale. 

Sales Training Technique – Proper sales training could erase these problems entirely. One study of sales executives found that 79 percent indicate that employees receive training in sales skills.

It is important to remember that the nature of sales technique training is changing, and more emphasis is being placed on developing trusting, enduring relationship with customers.

Salespeople are receiving more training on listening and questioning skills so that they may be effective in learning the customer’s needs.

Research has also found that effective listening skills are positively associated with sales performance and work satisfaction.

Besides building trusting relationship with customers, sales techniques are now geared towards customers’ need satisfaction, problem solving and partnership forming with the customer’s best interest as the focus.  

Product Knowledge - Salespeople must have thorough product knowledge, including its benefits, applications, competitive strength, and limitation. Product knowledge may need updating in the event of new product development, product modification, product deletions or the development of new application for the product.

Product knowledge is one of the most commonly covered topics in sales training programs. The more complex or service, the higher the likelihood that detailed knowledge about the product/service offering will be stressed during training programs.

Having product knowledge is not enough – the salesperson must know the customer and have necessary sales skills to apply the knowledge of the product to the customers’ situation.

Customer Knowledge - Sales training may include information relating to customer’s needs, buying motives, buying procedures, and personalities (i.e. customer knowledge).

As companies expand their global selling efforts, training programs must address cultural differences and business protocol in foreign countries. Example of gift giving maybe well intended however, it can backfire therefore training on intercultural communication is important.  

Competitive Knowledge - Salespeople must know competitive offerings in term of strength and weaknesses to plan sales strategy and sales presentations effectively and to be able to respond effectively to customer questions and objections. It is important to new salespeople because your competitors salespeople may have had years of experience and knowledgeable.

Customers may take advantage of a new salesperson who if not familiar with the competitors price structure may unnecessarily reduce their own price to make a sale, thereby reducing revenue. 

Time and Territory Management - Training in time and territory management (TTM) is often included in formal sales training programs. The purpose is to teach salespeople how to use time and efforts for maximum work efficiency.

Efforts to make more efficient use of time and increase salesperson productivity have been bolstered by Salesforce automation (mobile phone, faxes, portable computer, internet use etc). 

Set Training Objectives

Because training needs vary from one sales organization to the next, so do the objectives. One or more of following objectives can be considered:

·         Increase sales or profits.

·         Create positive attitudes and improve Salesforce morale.

·         Assist in Salesforce socialization.

·         Reduce role conflict and ambiguity.

·         Introduce new products, markets and promotional programs.

·         Develop salespeople for future management position.

·         Ensure awareness of ethical and legal responsibilities.  

Because training needs vary from one sales organization to the next, so do the objectives. One or more of following objectives can be considered:

·         Teach administrative procedures.

·         Ensure competence in the use of sales and sales support tools such as portable computers.

·         Minimize Salesforce turnover rate.

·         Prepare new salespeople for assignment to a sales territory.

·         Improve teamwork and cooperative efforts. 

These objectives are interrelated.

Example: If salespeople gained competence in the use of a new sales tool, sales and profit may improve, Salesforce morale may be positively affected and other beneficial outcomes may occur.

·         By setting objectives for sales training, the manager avoids the wasteful practices of training simply for training sake.

• Also proper relevant training are prepared to meet the objectives. 

Additional Benefits:

·         Written objectives becomes a good communication vehicle to inform the Salesforce and other interested parties about upcoming training.

 

·         Top management is responsive to well-written, specific objectives and may be more willing to provide financial support

·         Sales manager finds it easier to prioritize various training needs and sequences of training becomes more apparent. 

The third step of the sales training process, the sales manager considers various approaches for accomplishing the objectives of training.

·         Selecting Sales Trainers

·         Selecting Sales Training Location

·         Selecting Sales Training Methods

·         Classroom/Conference Training

o   On-the-Job Training

o   Behavioral Simulations

o   Absorption Training

o   Selecting Sales Training Media

 Selecting Sales Trainers – Own trainer, sales manager, or senior sales person or hired training professionals.

◦      In large companies a full time sales trainee is often available. (Most important reason to use internal sources is because they can communicate in very specific terms to sales trainees).

◦      Example: XEROX uses its high performing salespeople as mentors in the field to provide its reps with advice and information for improving their performance. 

·         Selecting Sales Training Location – Most sales training is conducted at home, regional or field offices of the sales organization.

Manufacturing plants are also popular training sites, and some firms use non company sites such as hotels or conference Centre’s to conduct training. Many firms are also using video broadcasting and teleconferencing at one central location, thus minimizing costs. Central training facilities are other possibilities. E.g. XEROX . (Document University, Leesburg, Virginia.)

Selecting Sales Training Methods – A variety of methods can be selected to fit the training situation. There are four categories of training methods:

Classroom/Conference – Features lectures, demonstrations and group discussions with expert trainers serving as instructors. This method is often used for training on basic product knowledge, new product introduction, administrative procedures and legal and ethical issues in personal selling.

On the Job – Salespeople can be taught only so much about selling without actually experiencing it, therefore on the job training is extremely important and is the most prevalent methods of training salespeople. Trainees are put into actual work environment under supervision.

Behavioral simulations – Methods that focus on behavioral  learning by means of business games and simulations, case studies and role playing – where trainees portray a specified role in a staged simulations.

Absorption – Involves furnishing trainees or salespeople with materials that they peruse or absorb without opportunity for immediate feedback and questioning. Product manuals, direction-laden memorandum and sales bulletin are used in absorption training.

Selecting Sales Training Media – The internet offers opportunities to cost-effectively train Salesforce across different times and locations. Online training allows companies to train salespeople without taking them out of the field.

Another emerging technology, desktop personal computer videoconferencing allows salespeople to see each other and trade information via their PC. Satellite television offers another viable training alternative.

Design the Sales Training Program

The fourth step in the sales training process is a culmination of, and condensation of the first three steps;

In this step of designing the training program, the necessary responses to what, when, where and how questions are finalized.

Training is scheduled, travel arrangements made, media selected, speakers hired, and countless other details arranged.

(This can be the most tedious part of the Sales Training Process.)

 

Perform Sales Training

The fifth step in the sales training process is the actually performing the training, may take only a fraction of the time required by the previous steps.

As the training is being conducted, the sales manager’s primary responsibility is to monitor the progress of the trainees and to ensure adequate presentation of the training topics.

Feedback from the trainees might be solicited on everything from the effectiveness of external trainers to the adequacy of the psychical training site. 

Conduct Follow-Up and Evaluation

The sixth step in the sales training process is the follow-up and evaluation process.

It is always difficult to measure the effectiveness of sales training. This is a long-standing problem, due in some cases to a lack of clearly stated sales training objectives. Evaluations can be made before, during and after the training occurs.

Despite the inherent difficulty in relating subsequent sales performance to previously conducted sales training, the effectiveness of sales training is increasing being measured in dollars and cents.

The return-on-investment approaches seeks to define training effectiveness in terms of incremental sales volume from existing accounts or volume generated by new accounts.

 

Ethical and Legal Issues

Ethical and legal issues are being included in sales training programs more often than in the past.

·         One catalyst for this change has been product liability litigation that has awarded multimillion–dollar judgments to plaintiffs who have suffered as a result unsafe products.

Research has found that salespeople face a number of ethical and legal dilemmas.

Training in legal area is extremely difficult because laws are sometimes confusing and subject to multiple interpretations.

Companies that address ethics and legal issues in their sales training program usually rely on straightforward guidelines that avoid complexity.

 

Sources:

Sales Management Analysis and Decision Making by Pilai, Ingram, LaForge, Avila, Schwepker Jr Williams. 5^th Edition Thomson South-Western