It’s that time of the year again when businesses start budgeting for the next financial year, and with that many wonder how much they should spend in sales training. Of course, the answer to the question is different for each business, but using a simple example, here are 3 basic options currently widely available and the results you can expect from each:
- Do nothing but expect improved results
Hope is not a strategy.
Investment: zero.
ROI: uncertain
This is still very common across businesses and prevalent in a number of industries because they either treat selling with disdain or see it as being personality-driven rather than a profession to learn and master.
- Traditional (annual) 2-day sales training workshop
Average cost per person: $500 (based on team of 30 people)
Investment: high
ROI: low.
Research shows that after 30 days, almost 90% of the learning is forgotten. Hardly anything gets implemented, and nothing really changes. The people who are good are validated while those who need to develop get left behind.
Sometimes the 2-day training is reduced to 2 hours at a conference in the hope it will be enough for the sales team over the ensuing 12 months
- Implement a 12-to-26-week Sales Development Program
Average cost per person: $1,400 to $1,700
Investment: LOW to MEDIUM (around $60 per week per person).
ROI: HIGH 20% to 30% improvement in sales results on average over 3-6 months
Typically includes: 2-day face-to-face Sales Leaders Program for sales managers, 1-2-day face-to-face Sales Training for the sales team (or the equivalent as a staggered sequence of remote training sessions – more on this further down), 12 months access to online sales training content including a parallel support program for managers to coach their teams on a regular and consistent basis using 70:20:10 learning principles. 3 to 6 months follow up sessions with managers to embed learning and keep developing coaching tools using real stories from the field.
Let’s do the ROI math: If a salesperson’s average sale is $5,000 and they were selling $500,000 per year – that’s 100 sales on average. If they improved their performance by 20% over the year, they will have sold $600,000 at an average deal size of $5,000. In addition, the average size of the sale could increase by 20%+ to $6,000 as well. Then combine increase in numbers of sales with increase in size of sales and the sales results could be $720,000 per annum which is an increase of $220,000 in sales growth which is nearly 50% increase in sales. These are just some of the ROI we are seeing from adopting Option 3.
The value of regular education done remotely
Now add to this equation the savings that can come from doing sales training remotely, bit by bit over time. Instead of 2 days face-to-face, sales training can be delivered via your preferred video platform over several regular mini sessions – bite size chunks of applied true-to-life learning. Besides the cost-efficiency of this delivery method, teams gain from applying what they learn immediately back in the field, coming back to the following session with questions, ideas, insights, and real-life scenarios to discuss. This makes learning a lot more interesting, engaging, fun, and rewarding because people can see and share learnings and progress.
Option 3 works because it uses well researched and effective business models and frameworks along with inquiry based 70:20:10 learning and insights to tap into people’s natural curiosity and intrinsic desire to achieve mastery which drives the right thinking, behaviours, and change needed. It is housed in Perpetual Learning Environments™ that show success over and over again.
There is plenty of research and we have plenty of client case studies that show Option 3 delivers results and outcomes time and time again. Such as:
- Sales revenues and profits are growing across all teams
- Increased share of wallet per customer, and growth in size of each sale
- Drastic reductions in discounting accompanied with greater client satisfaction built on true value
- Sales teams are more confident and competent with clear demonstration of application of sales skills leading to better sales
- Lift in outbound sales prospecting and field sales activities, better prospecting and qualifying of opportunities, and better activity management leading to better conversion rates
- Sales teams finding and winning more profitable sales with better quality clients
- Healthier sales pipeline with more confirmed work over longer timeframe
- Improved customer satisfaction, NPS scores, and retention
- Culture and mindset shift across the entire organisation to improve the customer experience and lift sales
- Increased level of sales staff competence and retention and corresponding reduction in sales staff turnover from 30-40% to less than 5%
- Increased coaching capabilities and confidence of the sales leadership team with sales teams feeling positive about being led by competent, effective, and respected coaches
- Increase in peer-to-peer learning with salespeople able to clearly explain to their team mates how they have just won a significant new customer using the tools and learnings from their training and coaching
Who wouldn’t want this for their sales teams?
Some points to consider:
Option 3 starts with leaders, as they are the only ones who can consistently lead and drive these long-term initiatives – you sweep the staircase from the top. Their commitment to a long-term engagement (in small portions of course) is required, as well as their interest and care for their people’s ongoing development.
To achieve Option 3 results requires a small investment of money and a small commitment of time invested at regular intervals to make this happen. It should be based on a specific sales strategy and an articulated sales process, while human-centred.
Remember, everybody lives by selling something.
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