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Training Assessing Training Needs Management objectives –products, customers, relationships Sales force observation & survey –time, problems, needs, successes,

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Presentation on theme: "Training Assessing Training Needs Management objectives –products, customers, relationships Sales force observation & survey –time, problems, needs, successes,"— Presentation transcript:

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:ReactionsAre trainees satisfied? This also provides information so that the parts they don’t like can be improved. Level Two:LearningDid 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 ThreeBehaviorAre 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:ResultsWhat 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 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 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 TrainingObjectives Budget Needs Assess Setting Setting TrainingObjectives Budget Needs What WhereTraining Trainers? Topics? to Train?Methods? What WhereTraining 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, months Industrial$8, months Service$8, 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 years years Over 10 years Regions Northeast Southeast Midwest Southwest West

10 Table 10-5 Sales Training Evaluation Practices Criteria Importance Measure Type Rank Trainee feedbackReaction 1 SupervisoryBehavior 2 appraisal Self-appraisalBehavior 3 Bottom-lineResults 4 measures Customer appraisalBehavior 5

11 Training Evaluating Sales Training Experimental Design Notation:O 1 = Results before sales training X 1 = Sales training O 2 = Results after sales training O 2 - O 1 = Difference in results Experimental Group O 1 X 1 O 2 Control Group O 3 O 4 Sales Training effect(O 2 - O 1 ) - (O 4 - O 3 )

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 Under $5 $5-$25 $25-$100 $100-$250 Over $250 Million Million Million Million Million Median spending Company size

16 Training Allocating training time Average Product knowledge 35% Market/Indus Information 15 Company Orientation 10 Selling Techniques 30 Other topics 10 \ Total100%

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 Under $5 $5-$25 $25-$100 $100-$250 Over $250 Million Million Million Million Million Median spending 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* Judgement of: Top Management Sales Management Training Department Interview With: Salespeople Customers 68% 73% 60% 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 Needs Continued* Performance Measures: Sales Volume Customer Service Other Measures: Observation of Salespeople Attitude Surveys 56% 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 * Reactions: Trainees Supervisors Learning: Performance Pre-vs. Post Training Behaviors: Supervisor’s Appraisal Customer Appraisal Results: Bottom Line 86% 68% 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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