Guest Post by Rochelle Ceira
Evaluating the efficiency and effectiveness of an investment is an essential part of running a business.
Since sales are what keep a business running, the return on investment (or ROI) of your sales training is a valuable tool for assessing the company’s performance. ROI measurement is a bit tricky but very useful to companies who want to make the best of their sales teams.
Moreover, choosing a specific training course and the right ROI measurement methods is quite difficult.
It is not impossible, though.
One should not only start measure sales training in terms of ROI, but also ROE (return on expectations).
Being up-to-date on what constitutes successful ROI of your sales training is financially and strategically important. If you invest a certain amount, but sales increases by less than your investment, you are running into a loss. Plus, any strategies you adopt will take some time to implement and even more time to dismantle if they are not effective.
Below are some tips on how to measure the ROI of your sales training in an effective manner. Remember these few rules, and you will not regret investing in training:
4 Rules to Measure Sales Training Effectiveness
1. Consider The Practical Application
When it comes to investing in sales training, a manager needs to ascertain that their training is actually applicable in reality.
An idea or method for training may sound excellent in theory, but not practical or even applicable when operating in the real world. This is because, in real life, you are subject to a number of external factors. This could include the society you are operating in, the people involved in the process, or even the weather.
In fact, one training method could be useful in one branch of the company, but absolutely useless in another.
Or, it might be that what worked in the past has no place in the future. With technology advancing by leaps and bounds, one has to be prepared for all sorts of unexpected challenges.
Therefore, the ROI of sales training needs to reflect real-life applications instead of a theory.
The way to make sure the reaction is positive is to be up-to-date on what achieves the best results. One constantly needs to show that there is a connection between the training and the final sale.
The training should then be centered upon developing the most effective methods to allow the sales team to operate at the top of their game.
2. Have An Idea Of The Value
You are investing actual money in sales training, so you should conduct proper research into your investment.
There are several ways to estimate the value of the skills you are striving to instill in your workforce. Just as with any other investment, doing this before you invest money into a sales training program is the best way to go.
This could include looking at your own past experiences or that of your competitors. It is also wise to take the counsel of someone more experienced and respected in the industry than yourself.
When you start training, you expect results.
After ascertaining the costs you have put into a training program, you also need to estimate the value of the results. This is a bit easier to calculate since it would mostly consist of looking at the increases in sales, if any.
Plus, you would also have to calculate the value of the actual increased sales.
If the cost of training is more than the sales revenue or profit generated, you may want to reconsider your training practices.
This does not mean you should stop putting money into training.
Instead, consider giving it some time to mature and possibly generate more return.
Training is not something that happens on as regular a basis as sales, so be careful with your calculations; or better yet, bring in an expert to help you out.
3. Get Your Hands Dirty
There is really no substitute for getting into the nitty-gritty details of sales training.
Nothing should be considered too unimportant, or too perfect to be improved. Designing and developing a training program is hard work, but looking for shortcuts could lower its effectiveness.
It is also essential that one is familiar with just what they want to be done, and what they want to achieve. Simply saying ‘work harder, work better’ is too vague for any sort of response.
It is best to give your team examples and guide them through exactly what they need to do when the training is over.
4. Chalk Out A Comparative Baseline
A baseline measurement before introducing any training session is a very useful tool.
This would help you to see just how far you have come. Otherwise, the estimates could be unclear and even unconvincing. Setting a proper baseline beforehand could also come in handy if the training does not do much.
This way, you would be better able to gauge what went wrong, and what could be salvaged.
After the training, you can use the baseline to show employees how they are improving or declining as well. This could also serve as a motivating factor for them to enhance their performance even more.
The ROI and ROE of your sales training both depend on the system they are in. Obviously, your sales team needs some sort of goal to achieve, and they deserve proper compensation, too. Otherwise, all the training and expectations set will probably not result in the increase in sales that we want.
Further, to improve ROI of sales training, one also needs to consider eliminating anything that could be considered a negating factor. This may be low wages, company politics or too much red tape.
Whatever the case may be, it is important to look at the process as well as the sales team.
Rochelle Ceira is a freelance worker who helps companies in strategizing their marketing and sales policies. She is working for various firms who provide dissertation writing service. In addition, she also holds workshops for sales teams, teaching them how to move forward and develop the best process for successful sales.