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Friday, 13 January 2012

Does Sales Training increase Top Line Revenue?


a) What is the effect of Sales Training on Revenue?

b) Is there any evidence that Sales Training impacts on Revenue?




Evidence Based Sales Training, when completed by Sales Coaching, can change the Sales Behaviours of the Salesperson. There is ample evidence based information (e.g. SPIN(r) and The Challenger Sale) to show that SOME Sales Behaviours are more effective than others.

Also, we can show from an evidence basis that some Sales Behaviours are Ineffective (waste of time) and finally that some Sales Behaviours are counterproductive (Dysfunctional).





By reducing or eliminating ‘Dysfunctional’ and ‘ineffective’ Sales behaviours
and by increasing the use of Effective Sales Behaviours
the following “effects” can be measured.




a) Increased Pipeline (more opportunities)

b) Better Qualification (eliminating no hope-opportunities)

c) Improved win rate

d) Shorter Sales Cycle (from Lead to Close)

e) Increased Revenue

f) Improved Margins


In 2013, all of this and much more “real time” data can be pulled off of your CRM or SFA, quite easily.

When writing my MBA Dissertation “Performance Measurement and Management of a Sales force” (1999)
I found that there is always difficulty of proving ‘cause and effect’,
especially when using ‘Proxy Measures’ and ‘Success Indicators’.

Instead, we often have to use factors “associated with success
to plough our narrow furrow!

Evidence Based Sales Training has the following Flow:

a) Identify Behaviours associated with Sales Success and Failure

b) Measure the presence or absence of these Behaviours in the Sales force

c) Complete a Training Needs Analysis (PDP at the individual level)

d) Design the Behaviour Based Sales Training Program

e) Run the Training and the associated Coaching to modify their Sales Behaviour

f) Internal Validation – Did the Salespeople LEARN the new Behaviour?

g) External Validation – Are the Salespeople USING the New Sales Behaviour?

h) Evaluation – is the new behaviour producing the expected results?

You could read more about this in Leslie Rae’s Book

Or by using the Kirkpatrick Model

All of BMAC Consultants’ research, and the measured outcomes,
is bound by non-disclosure agreements with Clients.

But, from experience and exchanged anecdotes from other Evidence Based Sales Trainers
the expected Group or Line of Business Revenue result during the year of Sales Training
is between +15% to +30% improvement to Top Line Revenue.

At the individual salesperson level, a fully trained and competent (Evidence Based) Salesperson
after 3 years of planned curriculum (at an 80% Competence) can be expected
to perform at +200% to +300% more Revenue Performance
above the “average untrained” Salesperson.


How can we “prove” that
Evidence Based Sales Training
delivers Revenue Improvement?

Personally, when asked to do so,
I ask for 6 “stuck” deals from the current pipeline and
then I DEMONSTRATE the capability of the Sales Skills
to UN-stick or Close the Deals.

If you will settle for two anecdotes [not sourced] :

a) A deal worth £17M in Revenue and £4M in Margin had been “stuck”
or more accurately “lost” for
370 days at ‘Proposal made – Decision pending’.
I reframed, we constructed and wrote a new Value Proposition
(reducing it from 103 pages to 4 pages),
presented the new Value Proposition and Closed the deal all in 10 days.

b) A €4M Revenue Renewal Negotiation “stuck” by the Customer’s demand
for a 30% discount to match a Competitor’s offer”,
it was rated as a “Lost” deal in the pipeline!
I met with the Decision Maker, we reframed the deal increasing its Value to €7M,
and then we discounted by 12% against a Delegation of Discount Authority maximum of 15%.
From meeting the Account Manager, Planning the Call and Agreeing the Deal - 180 minutes!

This fits because People just want the success secret;
they just want the recipe to imitate success.



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