best practices in design and delivery of sales training programs
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it is about training.. how can you design training smoothly and after that the strategic delivery approch for that.TRANSCRIPT
© 2 0 1 5 R i c h a r d s o n a n d T r a i n i n g I n d u s t r y , I n c . A l l r i g h t s r e s e r v e d . 1
©2015 Richardson and Training Industry, Inc. All rights reserved.
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Contents Overview ................................................................................................................................................................................3
Key Findings ..........................................................................................................................................................................3
Best Practices in Design and Delivery of Sales Training Programs ................................................................................5
Improving Sales Performance .........................................................................................................................................6
Training Method Utilization ...........................................................................................................................................8
Best Practices for Training Delivery ....................................................................................................................... 10
Trends in Sales Training Design and Delivery ........................................................................................................... 13
Leveraging External Training Providers ..................................................................................................................... 17
Summary ........................................................................................................................................................................ 22
Demographics .................................................................................................................................................................... 23
Company Sizes ............................................................................................................................................................... 23
Industries Represented ................................................................................................................................................. 24
Departments Represented ............................................................................................................................................ 25
About This Research ......................................................................................................................................................... 26
About Richardson ......................................................................................................................................................... 26
About Training Industry .............................................................................................................................................. 26
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Overview Sales training and sales effectiveness has been a cornerstone of many organizations’ strategies to increase
revenues and drive efficiency. However, the landscape of sales training is subject to constant change—whether
from technology, buyer education, communication strategies, or training delivery methods. As markets continue to grow and evolve in complexity, learning leaders need to actualize their organizations’ initiatives to improve
sales performance. This includes maintaining current sales training priorities, planning for future needs, keeping
current with trends in sales training methods, deciding how to allocate training budgets, and leveraging external
training providers.
A recent online poll at Trainingindustry.com asked training professionals which delivery method their
organizations would use most in the next six months; of 229 responses, 52% said their organization would use virtual instructor-led training, 28% for classroom-based training, 13% for online courses or programs, and 7%
for mobile applications. However, is this snapshot poll indicative of what learning leaders across different
industries and in organizations of varying sizes are using for sales training improvement? The 2014 ATD State of
the Industry report1 states that training expenditure per employee averaged $1,208, 27% of those learning
expenditures involved external service providers, and formal classroom-based training comprised 70% of
training hours. Market predictions, however, forecast that e-learning will see greater utilization by organizations
around the globe in coming years2. Such current trends pose challenges to sales training organizations on how to
evolve, what to evolve, and—when partnering with external training providers—with whom to evolve when it comes to making measurable, sustainable improvements to sales training effectiveness.
To explore these issues, Training Industry, Inc. and Richardson conducted a study to examine the programs and
initiatives that organizations are using for sales training and to look for patterns in how these organizations draw
on external expertise to assist in achieving performance goals. In October 2014, 223 companies completed a
survey reporting their organizations’ current and future strategies, training effectiveness, and best practices for
sales training initiatives.
Key Findings • 82% of organizations’ sales training programs were rated effective
– 17.6% said their company’s program is ineffective
• The top current priorities for improving sales performance are:
1 http://www.astd.org/Publications/Magazines/TD/TD‐Archive/2014/11/2014‐State‐of‐the‐Industry‐Report‐Spending‐on‐Employee‐Training‐Remains‐a‐Priority 2 http://www.researchmoz.us/global‐e‐learning‐market‐2012‐2016‐report.html
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– Developing sales process (e.g., lead, opportunity, and account and territory management)
– Training of sales representatives and managers
– Coaching of sales representatives and managers
• Training delivery methods were shown to conform to the following trends:
– Instructor-led classroom training, on-the-job training, and on-the-job coaching are currently used most frequently
– Instructor-led online training, video-based learning, mobile learning, and social learning are
most frequently identified for planned use
– On-the-job coaching, classroom training, and on-the-job training were rated the most effective
methods
– Gamification, mobile/social learning, simulations, videos, and e-learning are seen as the least relevant to effectiveness
• The most significant influencing trends in the sales training marketplace were:
– Training sustainment (e.g., continuous learning)
– Interactive learning
– On-demand training delivery
– ROI and learning measurement
• Planned areas of investment in learning technologies:
– Social media integration, training delivery tools, and training platform integration (e.g.,
LMS/CRM incorporation, cloud migration)
• Findings on leveraging external providers for sales training:
– External providers were leveraged most often for training sales representatives and managers, sales process (e.g., lead, opportunity, and account and territory management), and for L&D
data/tools/CRM
– The most important selection criteria for external providers included:
• Trust that the provider can deliver a solution
• Ability to customize solutions
• Industry expertise
• Fit with company values/culture
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Best Practices in Design and Delivery of Sales Training Programs The importance of sales training effectiveness to organizations is widely known, as sales volume or sales turnover
are often the primary measures of firm performance by establishments such as the Bureau of Labor Statistics.
Therefore, an effective sales training program best prepares sales representatives and managers to deal with market changes, new product offerings, and new selling frameworks—in other words, the company that takes a
strategic approach to sales improvement is more likely to maintain a competitive edge. But, how effective are
organizations at sales training overall? As shown below in Figure 1, the majority of the learning leaders (82%) we
surveyed rated their organization as being “somewhat effective” or “very effective” when asked about the utility
of current efforts to improve sales performance.
Figure 1. Effectiveness of Current Sales Performance Improvement Efforts
This suggests that the majority of organizations are realizing successes with their sales training programs. But,
what are the 22% of very effective organizations doing that sets them apart? How and where are they different
compared to the 18% of ineffective organizations? Throughout this report, we will highlight the differences
between these two groups to demonstrate how best practices are being utilized in sales performance
improvement efforts. In addition, where applicable, we will emphasize differences between large and small
organizations with respect to their sales training practices.
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Improving Sales Performance Though the majority of companies were rated effective at sales training, the constantly shifting business
landscape requires these organizations to adapt and change to remain effective. To take a pulse on what these
adaptations might be, we asked learning leaders what their current top priorities were for improving sales
performance. As shown below in Figure 2, the priorities endorsed most often were improvements to the sales process (leads, opportunity generation, and account and territory management), training of sales representatives
and managers, and coaching of sales representatives and managers.
Figure 2. Priorities for Improving Sales Performance
When considering organizations rated very effective at improving sales performance versus organizations rated ineffective, consistent patterns of priorities emerged. As shown in Figure 3 below, effective organizations were
more likely to endorse the top-identified priorities of sales process, training, and coaching by a margin of 7-8%
over ineffective organizations. Effective organizations were also 11% less likely to endorse forecasting as a
priority compared to ineffective organizations.
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Figure 3. Priorities for Improving Sales Performance
As highlighted by the arrows above, it is notable that the top three priorities are identical for very effective and
ineffective organizations. This suggests that even though the ineffective companies may have current
complications with their sales training programs, they are not generally prioritizing different initiatives
compared to the most effective organizations. Similarly, effective and ineffective organizations both tended to
endorse a variety of priorities, demonstrating that there is a mixture of sales training effectiveness goals across companies.
Considering very effective organizations, further analysis showed that endorsement of one priority, such as
improving the sales process, did not tend to co-occur with other top-identified priorities. Of the top three
priorities shown above, between 24% and 28% of very effective organizations endorsed at least two of three; 10%
of very effective organizations identified all three as top priorities. This suggests that while the most effective
organizations may be engaged in several initiatives, they tend to be focusing resources on a single main priority for improving sales performance.
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Training Method Utilization With more than 3 billion internet users worldwide, one might expect many organizations to have adopted a
multitude of web-based tools and resources for delivering training. However, our results demonstrated that
while online training delivery is certainly on the rise, it has not yet usurped more traditional “offline” delivery
methods. As shown below in Figure 4, current methods used by organizations to deliver sales training are dominated by face-to-face modalities. Namely, instructor-led training in a classroom setting, on-the-job
training, on-the-job coaching, and training led by the sales manager.
Figure 4. Current Delivery Methods for Sales Training and Development
Despite the dominance of face-to-face delivery methods, it should be noted that online deliveries did not go
unrepresented; virtual instructor-led training, for instance, is used by 44% of organizations. To explore the issue further, we also asked learning leaders what types of training delivery methods their organizations were planning
to use in the future. As shown in Figure 5, online and informal learning were endorsed most frequently.
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Figure 5. Planned Delivery Methods for Sales Training and Development
Of note in the above is the clustering of technology-enabled training delivery methods as the most frequently
planned delivery method, whether virtual, on-demand, or informal. Clearly, with all methods showing a planned
usage of 17% or more, organizations are seeking new delivery modes for training, whether it be to update
existing delivery formats or to augment an established delivery platform with alternatives to accommodate a
wider range of learning styles and/or technologies. As organizations balance the utility of new modes of training
delivery versus the cost to implement, current information about the effectiveness of different methods allows
both internal and external sales training providers to gauge where the training marketplace is headed.
Next, we will explore the use of delivery methods in more detail to elucidate differences between effective
organizations, as well as by organizational size.
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Best Practices for Training Delivery As shown below in Figure 6, there were substantial differences in utilization rates for different media by
organizations rated as very effective compared to ineffective organizations. Specifically, on-the-job training, on-
the-job coaching, and manager-led training were all used 1.5 times more frequently by effective organizations.
Further, formal live coaching, train-the-trainer, and mobile learning delivery methods were used twice as often by effective organizations. Of particular note is that there were no methods endorsed more frequently by
ineffective organizations—in other words, effective organizations not only use a wider array of training delivery
methods, they also utilize them more frequently.
Figure 6. Current Delivery Methods for Sales Training and Development, Effectiveness Split
Figure 6 also suggests that effective organizations are matching the modality of training delivery to learner
preferences, whereby the top three delivery methods are also rated as the most effective (see Figure 8). The above
chart also shows that the most effective organizations are open to new sales training methods on the whole, as
well as to a greater mix of formal and informal methods.
From the perspective of innovation in training, the most effective organizations appear to have embraced many
of the recent trends in training delivery. For instance, while mobile learning is utilized twice as often by effective
companies, as already noted, gamification and informal learning methods are also substantially more likely to be
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used by effective organizations. Results such as these suggest that the organizations that do an exemplary job of
training sales staffs are embracing newer technologies at a faster rate than ineffective organizations—though not
necessarily to supplant face-to-face training, but as a supplement.
Next, we analyzed training delivery methods as a function of organizational size. With some technologies, there
may be institutional barriers, such as resources, in-house expertise, supporting infrastructure, or tangible
business use cases, that distinguish the technologies able to be adopted by companies of various sizes. As shown
below in Figure 7, we found tangible differences in utilization rates of delivery methods by organizational size. In
particular, instructor-led training, on-the-job training, self-paced e-learning, and mobile learning were all used
more often in larger organizations (i.e., those companies with 500 or more employees), as marked by the blue
arrows. Smaller organizations were more likely to use on-the-job coaching, social learning, and gamification embedded into a LMS, as indicated by the red arrows.
Figure 7. Current Delivery Methods for Sales Training and Development, by Organizational Size
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Though a variety of delivery methods are being used by organizations, it is also important to note which
methods learning leaders feel are the most effective for sales training and development improvements. As shown
below in Figure 8, on-the-job coaching, instructor-led training, on-the-job training, and formal live coaching
were most often rated as a “very effective” delivery method.
Figure 8. Effective L&D Delivery Methods for Sales Training (Proportions of “Very Effective” Ratings)
Of interest is that the perceptions of effectiveness of some delivery methods may be a contributing factor to their adoption. For example, embedded learning in support tools and mobile learning were not seen as particularly
effective for sales training, nor are they adopted by a large number of organizations according to Figure 4. It may
be that organizations have not yet integrated these technologies successfully into their sales training strategic
plans, or there may be implementation obstacles, such as a lack of change management initiatives to drive
adoption rates among sales staffs.
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Trends in Sales Training Design and Delivery Beyond internal issues of sales training effectiveness, strategic priorities, and delivery methods, there are external
factors in the superordinate sales training marketplace that drive investments in organizations. We asked
learning leaders to provide information about the training trends that are influencing decision-making in their
organizations. As shown below in Figure 9, training sustainment (e.g., continuous learning), greater interactivity, demonstrable ROI, and striving for an on-demand, personalized training experience were the most
frequent trends impacting sales training directives.
Figure 9. Trends Influencing Sales Training and Development
We feel it is noteworthy that although instructor-led classroom training is the most frequently used delivery
method, as shown earlier, many of the trends influencing sales training involved aspects typically associated with
technology and learner control, such as interactivity, on-demand availability, and personalization of the learning
experience. Similarly, training sustainment and measurement show organizations actively treating sales training
as a process rather than a point-in-time event by acknowledging the strategic importance of continuous learning
and training ROI.
Along with training trends, we asked learning leaders where their organizations would likely be investing for
future sales training improvement efforts. As shown in Figure 10, training of sales representatives and managers,
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coaching of sales representatives and managers, and expenditure-related data, tools, and CRM systems were
most frequently identified as being areas of increased spending.
Figure 10. Direction of Future Investment for Sales Training Performance Improvement
Of particular note is that Figure 10 shows a planned increase in spending unilaterally across all areas. Further, as
plans to increase investment levels trends downward across improvement efforts in the graph, there is not a
simultaneous uptick in plans to decrease investment. It is a telling indicator of sales training growth that the
overwhelming majority of companies are increasing or maintaining their investment levels in sales improvement
efforts, illustrating an interest in strategic diversification by organizations. In addition to strategic investments,
we also asked learning leaders about expected investments in technology and found rather uniform investment
levels planned across social media, training platform integration with other systems, training delivery tools, and training authoring for new and existing content.
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Next, we asked learning leaders which technologies organizations were upgrading or introducing in the next one
to two years. As shown in Figure 11, training delivery tools and social media integration were most often
identified to be upgraded. Notably, all technologies are planned to be upgraded by at least 20% of organizations,
so although delivery tools and social media were the most prevalent, many companies are keeping their sales
training programs current with technological advances and innovation.
Figure 11. Planned Introduction/Upgrade of Learning Technologies
Although information on learning technology upgrades in general is useful to shed light on the planned
utilization of learning technologies, it is informative to explore whether there are any differences based on
organizational effectiveness with sales training. Figure 12 below shows the difference between very effective
organizations and ineffective organizations with respect to the differences in their plans to upgrade learning
technologies.
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Figure 12. Planned Introduction/Upgrade of Learning Technologies, Effectiveness Split
As shown above, effective organizations are more likely to be introducing or upgrading training delivery tools
and social media. In contrast, ineffective organizations are focused more heavily on authoring tools for both new
and existing training content. If training is viewed as a lifecycle, this could suggest that ineffective organizations
are targeting content authoring as a means to improve sales training effectiveness before turning their attention to learning technologies that are involved with training delivery and informal learning.
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Leveraging External Training Providers In addition to the reasons why an organization selects one external provider over another, we were interested in
what these organizations were leveraging external training solutions to accomplish. As shown below in Figure
13, the most common areas were training sales staff, improving the sales process, managing data and tools, and
coaching sales staff. Notably, there are no areas where engaging external providers was endorsed less than 20% by the learning leaders completing our survey, suggesting that while there are conspicuous trends toward
training and coaching sales staff, organizations are leaning on external solutions across the spectrum of
initiatives under study.
Figure 13. Propensity to Engage External Providers for Sales Training Solutions
Lastly, we asked learning leaders what specific criteria they considered when choosing an external provider to
deliver training solutions and support, as displayed below in Figure 14. Of note is that only 17% of organizations
do not plan to partner with external sales training providers.
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Figure 14. Criteria for Selecting External Providers
As shown above, the general criteria organizations rely on most when choosing an external sales training
provider are trust in the delivered solution, the ability to customize training content, demonstrated expertise in the client organization’s industry, and fit with the culture and values of the client organization. While other
criteria are not ignored by organizations (with the exception of the very low endorsement of accolades in
industry media), factors such as costs and peer recommendations simply were not as important to learning
leaders.
As before, we split the data to examine differences between very effective organizations and ineffective
organizations as shown below in Figure 15. While all organizations factor trust, expertise, and fit into their decisions, effective organizations were more likely to respond to the salesperson, whereas ineffective
organizations were much more focused on customization, cost, and domain expertise. Effective organizations
also emphasized customer service and length of time the external provider has been in business significantly
more than ineffective organizations. Also of note is the finding that ineffective organizations were 9% less likely
to partner with an external training provider.
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Figure 15. Criteria for Selecting External Providers, Effectiveness Split
Again, we considered the data based on organizational size, as shown below in Figure 16.
Figure 16. Criteria for Selecting External Providers, by Organizational Size
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As shown, larger organizations tend to seek out external providers with industry expertise and customization.
Smaller organizations, on the other hand, rely more on trust, fit, and a track record of success when working
with providers. This suggests a pattern whereby smaller organizations need a greater degree of cultural
alignment with a provider, while larger organizations may be more focused on content alignment.
We also asked learning leaders about best practices for engaging external training providers. A total of 404
separate practices were provided, which were coded into the 11 categories displayed below in Figure 17.
Figure 17. Best Practices when Considering External Providers for Training Solutions
As shown, project support and service was the most important factor for external providers, followed by being
knowledgeable about industry market sectors and organizational processes, demonstrated ROI and a clear value
proposition, and having a demonstrable track record of success in the market or with similar clients. Example comments for the top four practices are shown in the table below.
Provider Practice Example Comments
Project Support “Ease of working with provider,” “ability to engage”
Market/Process Knowledge “Familiarity of unique demographics of target markets,” “they do deep research on our business, customers, sales reps’ skills, etc.”
ROI/Value Proposition “Making sure solution is cost effective,” “cost reduction and value increase—demonstrable ROI”
Reputation/Track Record “Has clients in my industry and a good track record of producing results”
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Next, we examined whether there were differences in reported best practices for engaging external providers
based on organizational size.
Figure 18. Best Practices when Considering External Providers, by Organizational Size
As shown above, larger organizations tended to consider ROI focus and command of market knowledge to be
more important (blue arrow), compared to smaller organizations’ preference for reputation and customization
(red arrow) as best practices. This pattern resembles the above criteria for selecting an external provider, with the notable exception of smaller organizations now identifying content customization as a best practice. This
suggests that smaller organizations somewhat expect customization as a de facto best practice for external
providers when meeting clients’ needs, whereas larger organizations are expecting a more global orientation
toward how a provider can help position a client in the market.
1%
4%
6%
5%
5%
6%
14%
15%
14%
11%
18%
1%
2%
2%
5%
7%
9%
10%
11%
16%
18%
19%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Ensure Leadership Support
Utilize Effectiveness Metrics
Develop/Support Sustainable Training Tools
Technology Integration
Adherence to Deliverables
Adapt Training to Client Culture
Customization of Training Content
Reputation/Track Record of Success
Command of Market/Process Knowledge
Focus on ROI/Value Proposition
Project Support and Service
Over 500, N = 219 Under 500, N = 185
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Summary For current sales training programs, 82% of organizations we surveyed were rated as being effective.
The top priorities for improving sales performance were found to be developing the sales process,
training, and coaching of sales personnel. Sales training tends to be delivered via instructor-led classroom training, on-the-job training, and on-the-job coaching, with instructor-led online training,
videos, mobile learning, and social learning being the delivery tools most organizations plan to integrate
for training delivery in the near future.
Sales training trends that are influencing organizations’ learning and development investment decisions
include training sustainment, interactivity in training, on-demand delivery, and a focus on learning assessment and ROI. Technologies are a focus of many of these investment decisions, the most
frequently identified being social media, training delivery support, and training platform integration
with other systems.
Although not all organizations in our survey reported leveraging outside providers, those that do tend
to seek third-party solutions for training sales personnel, improving the sales process, and for working
with data and tools, such as client relationship management databases. Organizations tend to seek external training providers based on trust that the provider can deliver, the ability to customize training
solutions to fit the organizations’ needs, demonstrated industry expertise, and fit with the client
companies’ values and organizational culture.
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Demographics
Company Sizes Approximately 53% of respondents came from large organizations (see Figure 19).
Figure 19. Company Sizes Represented
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Industries Represented Business services and consulting made up the largest percentage of the sample (see Figure 20). Further,
approximately 51% of respondents represented the next four largest industries, including
technology/telecommunications, retail/wholesale organizations, banking/finance/insurance, and
manufacturing/construction.
Figure 20. Industries Represented
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Departments Represented As shown below in Figures 21 and 22, the majority of respondents represented leadership roles in sales, learning
and development, and human resource departments.
Figure 21. Departments Represented
Figure 22. Job Roles Represented
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About This Research
About Richardson Richardson is a global sales training and performance improvement company. We have more than 30 years of
experience creating customized solutions that build organizational ability and improve individual skill necessary
to grow profitable sales.
We work with some of the largest and most sophisticated companies in the world, and we have won numerous
awards. We create solutions that fit your unique culture and situation, helping you execute strategy through your sales force.
Please visit us at www.richardson.com to learn more about how we help our clients deliver and sustain high-
impact sales training solutions.
About Training Industry Our focus is on helping dedicated business and training professionals get the information, insight, and tools
needed to more effectively manage the business of learning. Our website, TrainingIndustry.com, spotlights the
latest news, articles, case studies, and best practices within the training industry.
For more information, go to www.trainingindustry.com, call 866.298.4203, or connect with us on Twitter and LinkedIn.
About This Research
Training Industry, Inc. research captures the collective wisdom of learning professionals, revealing fresh data on
trends and practices in the evolving training market. Copyright © 2015 by Richardson and Training Industry,
Inc. All rights reserved. No materials from this study can be duplicated, copied, re-published, or re-used without
written permission from Richardson or Training Industry, Inc. The information and insights contained in this
report reflect the research and observations of Richardson and Training Industry, Inc. analysts.