Sales Organization Concepts

Specialization The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization.

Centralization The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels.

Sales Force Specialization Continuum

Some specialization of selling activities,

products, and/or customers

All selling activities and all products to all customers

Generalists Certain selling activities for certain products for certain customers

Specialists

Concepts of Sales Organisation

• A sales organisation assists the sales manager to carry out needed tasks efficiently and effectively to achieve results

• The basic concepts of the sales organisation are: • Degree of centralisation • Degree of specialisation • Line or staff positions • Market orientation • Effective co-ordination

Basic Types of Sales Organisations

Sales organisations are generally classified into four basic types:

• Line Organisation

• Line and staff organisation

• Functional organisation

• Horizontal organisation

We shall discuss main characteristics, advantages, and disadvantages of each type of sales organisation

Line Organisation

Characteristics: All managers have line authority to direct and control subordinates. Used in small firms / departments

Advantages: Simple organisation, clear authority, quick decisions, low cost

Disadvantages: No support to line managers from subordinates who have specialised knowledge / skills. Less time for planning / analysis

Head

Marketing

Sales

Manager

Area Sales

Manager1

Area Sales

Manager3

Area Sales

Manager2

Area Sales

Manager4

salespeople salespeople salespeople salespeople

Line and Staff Organisation

Characteristics: Specialist staff managers are available for senior marketing /

sales managers. Staff managers’ role is to assist / advise line managers. Used in

medium and large size organisations

Advantages: Better marketing decisions, superior sales performance

Disadvantages: High cost and coordination, slower decision making, conflict may

arise if staff managers’ role is not clear

Head-Marketing

Marketing Research

Manager Sales Manager

Promotional

Manager

Customer Service

Manager

Area Sales

Manager-1

Area Sales

Manager-1

Area Sales

Manager-1

Salespeople Salespeople Salespeople

Functional Organisation

Characteristics: Each functional specialist has line responsibility over

salespeople. Used by a large firm with many products / market segments,

minimising line authority to functional managers

Advantages: Qualified specialists guide salesforce, simple to administer

Disadvantage: confusion due to more managers giving orders to salesforce

Head-Marketing

Marketing Research

Manager

Promotional

Manager

Customer Service

Manager Sales Manager

Area Sales Manager #4

Salespeople

Specialisation within Sales Organisation

• Needed to increase effectiveness of salesforce

• Done by expanding basic sales organisation

• Basis of specialisation

• Geography

• Type of product

• Market

• Combination of above

• Criteria for selection – (1) nature of product, (2) salesforce abilities, (3) demands of selling job, (4) customer and market facts

Geographic Specialisation

Characteristics: salespeople, assigned geographic areas, are responsible for all

selling activities to all customers within assigned areas. Branch sales managers

adjust marketing plan to local needs

Advantages: Better market coverage and customer service, more control over

salesforce, quick response to local conditions & competition

Disadvantages: Limited specialisation of marketing tasks. Hence, it is combined

with product / market sales organisation

Head-Marketing

Marketing Research

Manager General Sales

Manager Promotion

Manager

Customer Service

Manager

Branch Sales

Manager-1 Branch Sales

Manager-2

Branch Sales

Manager-3

Branch Sales

Manager-4

Salespeople Salespeople Salespeople Salespeople

Product Specialisation

• Used when the company has many products and / or brands

• Two types of product specialisation

(x). Sales organisation with product specialised salesforce

(y). Sales organisation with product managers as staff specialists

Head-Marketing

Marketing Research

Manager General

Sales Manager Sales Training

Manager

Promotion

Manager

Area Sales Managers –

Product Group ‘A’

Area Sales Managers –

Product Group ‘B’

Salespeople –

Product Gr. ‘A’

Salespeople –

Product Gr. ‘B’

Fig. ‘x’ Sales Organisation with product specialised salesforce

Fig. ‘y’ Sales Organisation with Product Managers as Staff Specialists

In fig. ‘x’: Characteristics: Salespeople in each product group sell only the products in that group

Advantage: Each product gets specialised attention from the salesforce

Disadvantage: Sometimes, more salespeople contact the same customer, resulting in customer dissatisfaction and higher cost

In fig. ‘y’: Characteristics: Each product manager plans and implements marketing plan, for a product group

Advantage: Corrects the problem of duplication calls on a customer by salespeople

Disadvantage: Lack of product specialisation by salespeople

Head-Marketing

Marketing Research

Manager Promotion

Manager Product Manager

Product Gr. ‘B’

Product Manager

Product Gr. ‘A’

General

Sales Manager

Area Sales

Managers

Salespeople

Product Specialisation (Continued)

Market Specialisation

• Characteristics: Desirable when customers are classified by type, user industry, or

channel. Salespeople carry out all activities for all products only for specific

customer groups

• Advantages: Meets needs of specific customer groups, implements customer-

centred philosophy of the company

• Disadvantages: Geographic duplication, high cost

General Sales

Manager

Sales Manager-

International-

Markets

Sales Manager-

Commercial

Sales Manager-

Consumer Markets

Sales Manager-

Government

Area Sales Mgrs

International

Sales Executives

Area Sales Manager-

Commercial

Salespeople

Area Sales Manager-

Government

Salespeople

Area Sales Mgrs-

Consumer Markets

Salespeople

Combination Sales Organisation

• Characteristics: Many firms use some combination of specialisation

organisations, called hybrid or combination sales organisation, with a view

to minimise disadvantages and maximise advantages of specialisation

organisations

• Figure above shows combination of geographic and market specialisations

Director – Sales

& Marketing

General Manager

Sales - North

General Manager

Sales - East

General Manager

Sales - South

General Manager

Sales - West

Regional Sales

Mgr. – Govt.

Regional Sales

Mgr. - Dealers Regional Sales

Mgr. - Commercial

Salespeople Salespeople Salespeople

Alternatives for Major Accounts

• Major accounts / customers are called by various names like key accounts, corporate accounts, house accounts

• They make up a large share of a firm’s sales volume and profits

• Firms use the following alternative approaches to deal effectively with them

• Create a position of major / national account manager

• Use existing territory sales managers

• Create a separate division

• Create a separate salesforce

Size of the Salesforce

• How many salespeople needed (or salesforce size) to achieve a firm’s sales and profit objectives is a key decision

• Methods available to decide optimum salesforce size are as follows:

• Workload

• Sales potential (or breakdown)

• Incremental

• We shall discuss these methods briefly:

Workload Method

• Assumption: All salespeople have equal workload

• Steps involved to calculate salesforce size are:

1) Classify customers as per their sales potential

2) Decide time per sales call and call frequencies for each class of customers

3) Calculate total market workload = (1) x (2) in hours

4) Decide total work time available per salesperson

5) Divide total work time available by different activities per salesperson in hours

6) Calculate total number of salespeople needed

)5(

)3(

nsalespersoperavailabletimesellingtotal

workloadmarkettotal

Workload Method (Continued) • Advantages: simple method, conceptually sound, used for all types of

selling situations

• Disadvantages: Neglects sales productivity & salesforce turnover

Sales Potential / Breakdown Method • The formula used is: , where

N=Number of salespeople needed, or salesforce size

S=Annual sales forecast for the company in value (Rs. Million)

P=Estimated productivity of the average salesperson in sales (Rs. Million)

T=Estimated percentage of annual salesforce turnover

• Advantages: Simple and straight forward

• Disadvantages: Conceptually weak; lead time needed for a new salesperson to reach average productivity

)1( TP

SN

Incremental Method

• It is based on marginal analysis theory of economics

• Basic concept: Net profits will increase when additional salespeople are added, if the incremental sales revenues exceed the incremental costs

• Merit: Conceptually accurate, as it quantifies relationships between salesforce size, sales, costs, profits

• Demerit: Can not be used if historical data on sales and costs are not available

Salesforce Staffing

• It is one of the most challenging and important

responsibilities / activities of sales management

• Salesforce Staffing Process includes following stages:

• Planning

• Recruiting

• Selecting

• Hiring

• Socialisation

Planning Stage

• It consists of three steps:

• Establish responsibility for staffing process

• Decide number of salespeople needed

• Outline the type of salespeople needed

• Establish responsibility for staffing process

• Company management decides responsibilities for various stages / activities of staffing process

• Generally in a medium / large size company, middle and senior levels H.R. and sales managers are responsible

• Proper coordination needed between sales, marketing, and HR executives

Planning Stage Decide the number of salespeople needed

• Steps followed by each territory sales manager to plan requirement of sales people:

1) Decide optimum salesforce size (using methods discussed earlier)

2) Add number of promotions, retirements, transfers out, terminations, resignations expected from existing salespeople

3) Subtract expected transfers into the territory and existing salesforce

4) Make a total of new salespersons needed

• Territory sales managers submit their requirements to national / general sales manager, who calculates the total number of new salespersons to be hired

Outline Type of Salespeople Needed

The steps involved in the process are:

• Conducting a job analysis

• Preparing a job description

• Developing job qualifications / specifications

Conducting a Job Analysis

• It is done by a person from sales / H. R. department, or a consultant. It consists of two tasks:

(1) Analyse environment in which the salesperson would work – E.G. nature of customers, competitors, products.

(2) Determine duties and responsibilities of the salesperson. Obtain information from sales managers, customers, etc.

Preparing a Job Description

• It is a written document developed from the job analysis

• The detailed job description is a useful tool for recruiting,

selecting, training, compensating, and evaluating

salespeople

• Some of the points it generally covers are:

• Job title, reporting relationship, types of products /

services sold, types of customers, duties and

responsibilities, location and geographic area to be

covered

Developing Job Qualifications / Specifications

• These are generally based on job description

• Job specifications / qualifications include education, sales

experience, skills, and personality traits

• Many studies done, but no generally accepted job

qualifications for selecting salespeople, due to many types of

sales jobs

• Some methods used for developing job specifications are as

under:

• Study job description. Useful for a new company

• Analyse personal histories of salespersons

• Ask customers

Recruiting Salesforce

• Recruiting include activities to get individuals who will apply

for the job

• The general purpose of recruitment is to get enough qualified

candidates, to enable company select the right persons

• H.R. and sales managers must update information on

government employment regulations

• Recruiting stage / process includes following activities:

• Finding the sources of sales recruits

• Evaluating and selecting recruiting sources

• Contacting candidates through the selected source

Finding the Sources of Sales Recruits

• For identifying prospective candidates, firms use internal and external sources. They include:

Internal Sources External Sources

• Employee referral

programmes

• Current employees

• Promotions and transfers

• Advertisements in

newspapers and journals /

magazines

• The Internet (job sites)

• Educational institutions

• Employment agencies

• Job fairs

• Other companies

Evaluating and selecting Recruiting Sources

• Recruiting sources are evaluated based on the database built over number of years

• Evaluating factors are:

• Performance rating of salespeople, after 2 years working

• Percentage of salespeople retained, after 2 years working

• Total cost of recruiting

• Selecting most effective source of recruiting at least cost

• For a new company, selection depends on cost

• Contacting candidates through the selected source is done by H. R. department

Selecting Salesforce

• Selection process consists of seven major selection steps / tools

• Companies differ in using selection tools, depending on expenditure budget and time available

• Major selection tools / steps are:

• Screening resumes

• Application blank

• Initial interview

• Intensive interview

• Testing

• Reference check

• Physical examination

Screening Resumes

• It is done when the company receives many resumes

• This step / tool not required, if somebody else like employment agency does initial screening

• Initial screening of resumes are done by comparing with job specifications

Application Blank

• Widely used, it is a methodical way of collecting relevant information from the applicant

• Advantages of using application blank (also called “formal application form”) are:

(1) Easy comparison of many applicants

(2) Useful for asking question during interview sessions

Interviews

• Widely used selection tool

• A good predictor of the candidate’s performance

• Initial interviews are used for screening candidates

• Intensive interviews are conducted to get indepth view of candidates

• Interview structure / type of interviews:

• Structured / patterned / guided interviews

• Unstructured / non-directed / informal interviews

• Semi-structured interviews

• Behaviour and performance based interviews

• Stress interviews

• Purpose is to decide a candidate’s fitness for a job

Testing

• Many firms use tests as a selection tool – EG P&G, IBM

• Purpose of testing: To find whether applicants have traits / characteristics that lead to success in sales job

• Type of selection tests:

• Aptitude tests measure ability for selling and learning

• Intelligence tests find out mental intelligence or intelligence quotient (IQ)

• Interest tests find out level of interest in a sales career

• Knowledge tests measure knowledge of products, markets, etc

• Personality tests find out attitude or traits like empathy, self-confidence

• Tests must have reliability and validity

• Tests should be one of the selection tools and not the only tool

Reference Checks

• They are important due to possibilities of resume frauds and false personal information

• They are done by letters / e-mails, telephones, or personal visits

• Instead of candidate’s references, previous employers / customers to be included for reference checks

Physical Examination

• Objective is to find a physical problem that may prevent job performance of an applicant

• Most companies want their prospective employees to undergo physical examination

• Increasing number of firms ask applicant to complete the health information form without seeing a medical doctor

Hiring Stage

• After completing selection process, a list of candidates to be hired is made

• In hiring stage, two activities are performed:

(1) The company making the job offer

(2) Persuading the applicant to accept it

Socialisation Stage

• It is the process through which new salespeople learn values, norms, attitudes, and behaviour of people working in the firm

• Socialisation process starts before the new salesperson accepts the job offer and continues until the person is assimilated into the company culture

• Assimilation is the second stage of socialisation process

• Companies have this process, in order to retain new salespeople

Definition

• Sales Force Management

– The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.

Inside Sales Force

Outside Sales Force

Travel to Call on Customers

Sells to Major Accounts

Finds Major

New Prospects

Conduct Business From Their Offices Via Phone or Buyer Visits

Technical Support People

Tele- Marketing

Or Internet

Other Sales Force Strategy and Structure Issues

Sales Assistants

Turnover Rates

Industry 1999

Construction 13.8%

Office Equipment 47.0

Retail 51.2

Wholesale (Consumer Goods) 18.5

Electronics 14.1

Business Services 26.2

Pharmaceuticals 8.3

Banking 4.3

Real Estate 11.9

Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

Turnover Rates in Selected Industries

Compensation

(trainee average) $35,500

Benefits (approx.21.5% of

compensation) 7,600

Field Expense 16,000

Direct Expense $59,100

Training Costs 7,100

Total Costs $66,200

Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

First Year Cost of a Salesperson in the U.S.

The Recruiting Process

Mark W. Johnston and Gary W. Marshall, Sales Force Management, McGraw Hill, 2006

JOB DESCRIPTION FACTORS Selling Requirements: Degree of Responsibility

New account vs. established and Authority:

account Negotiations of pricing

Selling through distributors

Entertaining customers Career Paths:

Level of buying authority Compensation plan

Physical activity required Promotion timing

Weekends away from home

Relocation

Non-selling Tasks:

Reports to management

Customer service and training

Sales promotion

JOB DESCRIPTION FACTORS

Performance Expectations: Performance Expectations:

Activity level requirements Travel and entertainment

Written proposals Earnings potential

Individual vs. team selling Promotion leaders

One time vs. systems selling Minimum sales volume or

Type of prospects and customers profits

One-on-one selling vs. groups

Travel--how much and what kind

Program or concept selling

Technical knowledge

Educational seminars

Collecting receivables

Marketing plans

Inside Recruiting

• Advantages:

– Company employees have established performance records and present themselves as a known entity

– Recruits from inside require less orientation and training due to familiarity with current products, policies and operations

– Recruiting within bolsters company morale because employees see opportunities for advancement

• Facilitating internal recruiting starts with fully informing human resources of sales staff needs

Selection Tools and Procedures

• Application blanks

• Personal interviews

• Reference checks

• Physical examinations

• Psychological tests – intelligence

– personality

– aptitude/skills

Proposed Model of Sales Force Socialization

Realism

Congruence

Recruiting/Selection Objectives

Job Satisfaction

Job Involvement/ Commitment

Performance

Job Outcomes

Task Specific Self -Esteem

Person Outcomes

Resolution of Conflicting

Demands at Work

Initiation to Task

Training Objectives

Role Definition

Activities Involved in Managing the Human Resources of a Sales Force

Staffing: Having the Right People to Sell, cont…

• Job specifications for successful salespeople

– Education

– Personality

– Experience

– Physical attributes

Selected Characteristics of Successful Salespeople―Which are Most Important?

Major Steps in Sales Personnel Selection Process

Not all companies

take every step

• The decision process • for recruiting and • selecting salespeople

Sales Training

• Training supplements experience

• Higher performance can be achieved earlier

ACMEE process – Aim, Content, Method, Execution, Evaluation

• Initial Training * Continuous Training

Methods – lectures, one-to-one, role plays, demo, case methods, discussions, simulations, on the job, distance learning, sales manuals.

* In house * External Source

Broad objectives of Sales Training

• Increase productivity

• Improve morale

• Lower turnover

• Improve customer relation

• New Product Launch

• Shift in distribution strategy

• Implementation of new process / technology

Determine the objectives

• Specific

• Realistic

• Measurable

These add to the credibility of a sales training program.

Content of Training Programme

• Content for new sales trainees is broader. It includes:

• Company knowledge

• Product knowledge

• Customer knowledge

• Competitor knowledge

• Selling skills / sales techniques

• Examples of specific content for experienced salespersons are:

• New product knowledge

• Introduce change in sales organisation

• Negotiating skills

• Content depends on the aims of training programme

Develop and Implement the Training Program

• Content

– Internally developed

– Outside experts

• Training methods:

– Discussion

– Role playing

– On-the-job training

Source: “2001 Industry Report,” www.trainingmag.com

• Instructional Method • Classroom with instructor 100% • Workbook/manuals 98 • Public seminars 93 • Videos / CD ROMs 90 • Role-play 81 • Non-computer, self study 79 • Case studies 78 • Internet 74 • Games ( manual / computerized) 72 / 57 • Teleconferencing 53

Contd.

• Where does training take place?

– Centralized training programs

– Decentralized training

• When does training occur?

Training the Sales Force, cont…

• Who is involved in training?

• Is a combination of these sources required?

Traditional Methods Categories

Presentation Methods

Hands-on Methods

Group Building Methods

Presentation Methods

• Presentation methods refer to methods in which trainees are passive recipients of information.

• This information may include: – Facts or information

– Processes

– Problem – solving methods

• Presentation methods include: – Lectures

– Audio-visual techniques

Presentation Methods: Lecture

• Lecture involves the trainer communicating through spoken words what she wants the trainees to learn.

• The communication of learned capabilities is primarily one-way – from the trainer to the audience.

Lecture (continued)

• One of the least expensive, least time-consuming ways to present a large amount of information efficiently in an organized manner.

• Useful because it is easily employed with large groups of trainees.

Variations of the Lecture Method

Standard Lecture

Team Teaching

Guest Speakers Panels

Student Presentations

Presentation Methods: Audio-Visual Techniques

• Audio-visual instruction includes: – Overheads

– Slides

– Video

• It has been used for improving: – Communication skills

– Interviewing skills

– Customer-service skills

– Illustrating how procedures should be followed

Hands-on Methods

• Hands-on methods refer to training methods that require the trainee to be actively involved in learning.

• These methods include:

– On-the-job training

– Simulations

– Case studies

– Business games

– Role plays

– Behavior modeling

Hands-on Methods: On-the-Job Training

• On-the-job training (OJT) refers to new or inexperienced employees learning through observing peers or managers performing the job and trying to imitate their behavior.

• OJT includes:

– Apprenticeships

– Self-directed learning programs

On-the-Job Training (continued)

• OJT can be useful for:

– Training newly hired employees

– Upgrading experienced employees’ skills when new technology is introduced

– Cross-training employees within a department or work unit

– Orienting transferred or promoted employees to their new jobs

Self-Directed Learning (continued)

Advantages

• Learn at own pace

• Feedback about learning performance

• Fewer trainers needed

• Consistent materials

• Multiple sites easier

• Fits employee shifts and schedules

Disadvantages

• Trainees must be motivated to learn on their own

• Higher development costs

• Higher development time

OJT Programs: Apprenticeship

• Work-study training method with both on-the-job and classroom training.

• To qualify as a registered apprenticeship program under state or federal regulations:

– 144 hours of classroom instruction

– 2000 hours (or one year) of OJT experience

• Can be sponsored by companies or unions.

• Most programs involve skilled trades.

Apprenticeship (continued)

Advantages

• Earn pay while learning

• Effective learning about “why and how”

• Full-time employment at completion

Disadvantages

• Limited access for minorities and women

• No guarantee of full-time employment

• Training results in narrow focus expertise

Hands-on Methods: Simulations

• Represents a real-life situation.

• Trainees’ decisions result in outcomes that mirror what would happen if on the job.

• Used to teach:

– Production and process skills

– Management and interpersonal skills

Hand-on Methods: Case Studies

• Description about how employees or an organization dealt with a difficult situation.

• Trainees are required to: – Analyze and critique actions taken – Indicate the appropriate actions – Suggest what might have been done differently

• Major assumption of this approach is that employees are most likely to recall and use knowledge and skills learned through a process of discovery.

Hands-on Methods: Role Plays

• Trainees act out characters assigned to them.

• Information regarding the situation is provided to the trainees.

• Focus on interpersonal responses.

• Outcomes depend on the emotional (and subjective) reactions of the other trainees.

• The more meaningful the exercise, the higher the level of participant focus and intensity.

Hands-on Methods: Behavior Modeling

• Involves presenting trainees with a model who demonstrates key behaviors to replicate.

• Provides trainees opportunity to practice the key behaviors.

• Based on the principles of social learning theory.

• More appropriate for learning skills and behaviors than factual information.

• Effective for teaching interpersonal and computer skills.

Group Building Methods

• Group building methods refer to training methods designed to improve team or group effectiveness.

• Training directed at improving trainees’ skills as well as team effectiveness.

• Group building methods involve trainees: – Sharing ideas and experiences – Building group identity – Understanding interpersonal dynamics – Learning their strengths and weaknesses and of

their co-workers.

Group Building Methods (continued)

• Group techniques focus on helping teams increase their skills for effective teamwork.

• Group building methods include:

– Adventure learning

– Team training

– Action learning

Group Building Methods: Adventure Learning • Focuses on the development of teamwork and

leadership skills using structured outdoor activities.

• Also known as wilderness training and outdoor training.

• Best suited for developing skills related to group effectiveness such as: – Self-awareness – Problem solving – Conflict management – Risk taking

Adventure Learning (continued)

• To be successful:

– Exercises should be related to the types of skills that participants are expected to develop.

– After the exercises, a skilled facilitator should lead a discussion about • what happened in the exercise

• what was learned

• how events in the exercise relate to job situation

• how to apply what was learned on the job

Group Building Methods: Team Training

• Involves coordinating the performance of individuals who work together to achieve a common goal.

• Teams that are effectively trained develop procedures to identify and resolve errors, coordinate information gathering, and reinforce each other.

Components of Team Performance

Behavior Knowledge Attitude

Team Performance

Main Elements of the Structure of Team Training

Tools Team Task Analysis

Performance Measurement

Task Simulation and Exercises

Feedback

Principles

Methods Information-Based

Demonstration-Based Video

Guided Practice

Role Play

Strategies Cross-Training

Coordination Training

Team Leader Training

Team Training Objectives

Content Knowledge

Skills

Attitudes

Group Building Methods: Action Learning

• Involves giving teams or work groups:

– an actual problem,

– having them work on solving it,

– committing to an action plan, and

– holding them accountable for carrying out the plan.

Action Learning (continued)

• Several types of problems are used including how to:

– Change the business

– Better utilize technology

– Remove barriers between the customer and company

– Develop global leaders

Choosing a Training Method

1. Identify the type of learning outcome that you want training to influence.

2. Consider the extent to which the learning method facilitates learning and transfer of training.

3. Evaluate the costs related to development and use of the method.

4. Consider the effectiveness of the training method.

Sales Training Costs

• Organization Spent on Training ($ M)

• IBM 700

• Lockheed Martin 350

• Intel 336

• HP 260

• United Airlines 225

Source: Tammy Galvin, Gail Johnson, and Heather Johnson, “2004 Training Top 100,” Training 41, no.3 (2004), pp.22-36

How to evaluate training?

• Evaluation Info required Method

• Reaction Attitudinal Questionnaires

Comments

Interviews

• Learning Concepts/use Before-n-after

• Behavior On-the-job beh. Beh. Ratings, Before –n-after

• Results Changes in sales, Cost-benefit

productivity, others analysis

Evaluation of Sales Training Programme

• It is done to improve training design and implementation, and to find if expenditure was worthwhile

Framework for sales training evaluation:

Outcomes to measure What to measure How to measure When to measure

• Reactions /

Perceptions of

participants

• Training objective

• Was training

worthwhile?

• Questionnaires

•interviews

• After the training

• Learning –

knowledge, skills,

attitudes learnt

• Knowledge, skills,

attitudes

• Tests

• Interviews

• After training

• Before & after –

training

• Behavioural change • Trainees’ change of

behaviour

• Self-assessment by

trainees

• Observation by

supervisors /

customers

• After training, over a

period of one year

• Results –

Performance; Benefits

more than cost?

• Sales, Profits

• Customer

satisfaction

• Company data

• Management

judgement

• Market survey

• After training,

Quarterly, Yearly

Recent Trends in Sales Training Evaluation

• More pressure to show concrete evidence

• If sales training is an investment, the need is to document the benefits to calculate ROI

• Growing accountability

• Use of control groups is increasing

• Problems in equating sales increase with sales training.