Sales training: less rah-rah and more rationality
By Matthew Schwartz
Dismal. Reactive. Dysfunctional. Words used to describe this season’s performance of the New York Mets? No doubt. But Dave Stein, CEO of research and advisory firm ES Research Group, was actually referring to the current state of sales training.
Stein, a professional trumpeter, before starting a career in sales, said sales managers are constantly hitting the wrong note when it comes to properly training their sales executives.
“Sales leaders themselves tend to think with the right brain (intuitive) so they don’t think of sales training in a logical, disciplined and strategic way,” said Stein, whose clients include Chevron Energy Systems, ING, Marriott and Motorola.
Stein pointed to studies conducted by ES Research showing that at least 85% of sales-training initiatives result in no long-term improvement in sales longer than three months following the end of the sales-training program. “That would be unacceptable in every department except sales,” he said.
Part of the problem with sales training these days is that sales remains something of a mystery that is better left unsolved. “Sales is still looked upon as a black art and that salespeople are born not made,” Stein said. “But it ought to be based on performance, discipline, process and ROI. Trying to figure out sales training willy-nilly as opposed to devising a plan is the biggest reason for lack of performance in sales.”
While hiring with your gut has its place, Stein recommends that sales departments need to institute a top-down view of sales hiring and, subsequently, sales performance and sales improvement.
Asked about remedies to improve sales training and performance, Stein said: “Sales training partners are too often selected from those with the hot new book, the most press releases, or name recognition. [Companies need] a strategic and disciplined approach to sales performance improvement, just as other departments would improve their effectiveness and productivity.”
The danger of letting the problems associated with sales training to fester is a declines in both revenue and earnings. “Selling is an increasing commoditization of services,” Stein said. “If you can’t sell value, customers will demand prices be cut and companies will suffer from decreased margins and profit erosion.”
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