How to Be a Great Sales Manager [“Sales Shot” Workshop Recording]
How to Be a Great Sales Manager
[“Sales Shot” Workshop Recording]
[“Sales Shot” Workshop Recording]
Whether you’re a current sales manager craving more training, a sales rep who aspires to lead, or a leader who wants to know the secret to turning their best reps into great managers, watch this informative workshop to learn:
Plus, many more tips straight out of our Sales Bar. There’s a management tip or two for everyone!
Whether you’re a current sales manager craving more training, a sales rep who aspires to lead, or a leader who wants to know the secret to turning their best reps into great managers, watch this informative workshop to learn:
Plus, many more tips straight out of our Sales Bar. There’s a management tip or two for everyone!
Lauren Bailey Sales Leadership Insight, Sales Training + Development, Inside/Virtual Sales Training Tips, Strategy + Planning
After you’ve hired a sales training vendor, there are a series of questions you need to answer in order to ensure you’re getting the most out of your sales training investment, like:
Having been both the vendor and the buyer in this equation, I definitely have some insight to share. I’ve made mistakes as the Training Director hiring a sales/sales leadership training vendor, and I’ve had clients do some really smart (and less than smart) things.
Although I could write about this topic forever, I’ve narrowed it down to my top 5 tips to maximize your sales training investment.
1. Customize the Customization. Then customize that. Twenty years ago, I paid a vendor $15,000 extra to customize the training for my company. I spent countless hours sending them examples, marketing data, and websites. I forwarded redacted emails and unpublished case studies. I just KNEW they would get the “real feel” for how special our snowflake was. The result?
The vendor added one half-page sheet to the back of the workbook with two custom role plays. TWO! The pages weren’t even numbered with the rest of the workbook. Total afterthought! Literally, nothing else was custom.
Ready for the vendor flipside? Six years ago we up-leveled all our workbooks for Factor 8. This meant I couldn’t build custom workbooks from scratch anymore for clients (the downside of totally custom is a less professional look – even a few errors). Now each of our course workbooks of about 10 pages has around 15 sections in bold red font that our Advisors tailor prior to delivery. It might be the customer’s language, an industry example, a customer voice example, specific sales objections, etc. During the live interactions, our coaches play their sales calls, coach actual delivery, and will give custom samples/scripts of every skill. That’s customization!
Tip: Get an actual list of what is tailored to your organization, its format, and when/how it is delivered.
2. Require Manager Involvement. Note: I didn’t say attendance. You need attendance AND involvement! Back when I was delivering training in an enablement organization, we were afraid to invite all the sales managers to our training. They were so busy and important (and let’s be honest, a little rude). As I gained more confidence, I would meet with them 1:1 after the training with tips on what we trained and what to look for. As I got busier, I would schedule a 15-minute meeting so I could do this all at once. When I was put in charge, I required them to come AND met with them for 30 minutes afterward.
Guess what? They still couldn’t coach the skills. Sure, they attended the training, but they didn’t participate. They didn’t come and play to win as if they, too, would be graded on their adaption of the skills. They half-listened, did some email, smiled and nodded, and stole the stage as often as possible to give sage advice.
Vendor Flipside: At Factor 8, we meet with managers before the training, require attendance at the training, train the managers on how to coach the skills after the training, give managers 3+ tools to make it easy to support and coach the training, then do a follow-up meeting with the managers on how skills went, AND certify the managers to certify the reps on the skills. It may seem like overkill, but trust me, it works.
Your ROI will be cut in half if your managers aren’t underlying the importance of using the new skills and coaching their execution. Go overboard making sure they are trained, incentivized, and supported by your vendor to do this!
3. Measure Your Heart Out! If you aren’t crystal clear on the results, KPIs, and metrics that should be impacted by the training, then you’re not ready to outsource sales training. (Really, a vendor just said that!) In fact, ask the vendor what numbers they expect to move with this engagement (and don’t hire them if they don’t know!) At some point, you’ll have to show your sales training ROI, so define during the interview stage what success looks like and then go get a 3-6 month baseline on these metrics. As a training manager, I was nervous early in my career to do this. It only took one sales leader saying, “You are not solely responsible for the 35% uptick in XYZ…!” for me to start backing down and measuring success anecdotally or with smile sheets. As I grew in my career, all I did was add two words: “contribute to.” If we measure pre and post, we can all SHARE the credit!
Vendor Flipside: I love a case study. Number one reason I don’t have one on every client? They don’t provide us with their reporting. The leader pulls the trigger on the contract and then sales managers or the enablement team are left to execute and the ask never bubbles to the top. In fact, I’d love to take contracts based on up-side (we get paid when you improve) and have offered it many times in the past, but the baseline metrics and results weren’t available from the client.
4. Get Leadership Involved (more than they are). How do I know they aren’t very involved? I’ve had about 3 clients out of 300 who were. As a training leader, I had about none. Why is this critical? Because your attendees determine how important the training is based on what the leader says, does, and spends money on. Even if you have to write the script for the VP to kick off the meeting and send over the questions they need to ask in their 1:1 meeting afterward, take the time and do it. Otherwise, you may be the flavor of the month.
Vendor Flipside: They’re my favorite three clients ever. And when they ask for anything extra, they get it. I’ve helped them get jobs 10 years later, spoken free at their conferences, and featured them on our blogs. When a leader lends their time, voice, and stature to training, it will literally change the organization’s culture. Help convince them they’ll get more ROI by being involved. Make it easier on them with cheat sheets and reminders. These clients get double their money’s worth.
5. Focus on Long Term. Ever met with an internal client who wants you to train 5 things in 20 minutes? Me too. Try every single sales leader ever. Here’s why: Most people don’t know the difference between telling and training. That’s why their people don’t change their behavior after being told. Folks, if you want people to change what they’re doing, the training will take 5x longer than you want it to AND the support “tail” for the training will be months, maybe even years. Don’t make training an event – studies show they’ll remember about 30% of what is taught. The best leaders get this fact:
Training isn’t something you did, it’s something you do.
Vendor Flipside: Events are fun. They’re low risk and high reward. We often would have better selling days during training than normal days (live calling during training). Lots of energy, buzz, and results. But if that’s all your vendor is doing, reconsider. What about keeping skills alive? Pulling the buzz forward? Seeing skills move from the classroom to the sales floor? 15 years ago we offered a 1-day post-training follow-up. Then 90 days virtual. Now we do one-year contracts. It’s the right thing to do and the right way to do it. Doesn’t fit the SKO? Hire a speaker instead.
If you’re evaluating sales training, we’re here to help. Fill out the form or email info@factor8.com and let us know how we can help.
Contact us today to request information on our customizable virtual sales training programs
available for reps (and managers).
Lauren Bailey Sales Training + Development, Sales Training Budget + Cost
Training geeks will tell you there are four traditional ways to measure sales training ROI and the impact it has on an organization. It’s called “The Kirkpatrick Model.” In my experience, this model only includes two measurements that sales leaders actually care about. I’d like to add a few alternate levels to consider.
Level 1 is Learner Feedback. The smile sheet has more to do with liking the trainer or getting fed than the impact, and the quiz results are more about short-term memory than anyone’s understanding of how to actually apply skills.
Level 2 is Observation. What happens on the job? It’s observed behavior change, and it’s subjective. “Manager, did Bob use his new skills?” Manager: “Um, I haven’t been listening to Bob all day long, boss. I have 14 people and 200 emails to read…” You get the struggle.
Level 3 is Information Retention. New skills should be fresh in their minds and easy to execute the day after training, but what about 2 months later? 6 months? 1 year? Over time, people are known to fall back into bad habits. Truly valuable training provides easy-to-use (and memorable) skills that stick with the learner over time.
Level 4 is ROI. Calculate sales training ROI by taking the results that went up and divide by the cost of the sales training. Naturally, there are flaws here, like, “When do we stop measuring?” “What about soft costs of missed revenue?” “What if results fall off?” and “Training wasn’t all we changed that quarter!”
When I advise sales training leaders, I help them solve it all with two little words:
“Contributed to”
Last quarter, new vendor training contributed to a 25% increase in meeting close rates and a 34% increase in show rates. Extrapolated over the period of a year and using our standard meeting to deal close rates, that means an additional 245 meetings and 66 closed deals or $3.1 million in revenue. That’s a 31x return on investment of the $100K training investment. (That’s also expressed 3,100% folks and it’s BIG. It’s also a real case study, BTW).
So, sales training ROI is a big deal. When calculating, the bottom line is nearly always revenue or profit, but there are little wins along the way. Look for bumps in any of the following (and celebrate!):
Combine these as I did over a time period of a year and the numbers get big fast. Even a modest increase in a close percentage or deal size will bring double-digit ROI.
Now for the new stuff. In today’s climate, there are 5 more sales training ROI measurements I advise you to start tracking:
Yes, nearly all of these are about helping show the link between the career development you offer the new generation of sellers and how many of them come to work for you and stay.
If you’re offering ongoing development, a training budget, a certification, or a partnership with a premier vendor, ADVERTISE THAT (you’ll attract the new generation of sellers!). Then start tracking the average number of applicants over the previous months, but don’t compare pre-COVID (that’s apples vs. bacteria).
Great development keeps people in companies longer. So count what percentage of promotions are now happening internally and whether your investments are moving the needle of employee satisfaction.
There’s a direct correlation between employee engagement (and happiness) and their performance. If they’ve been with your company for 6 years and are consistently meeting or exceeding quota, chances are they’re happy in their role and less likely to leave. Have they missed quota a few times now, or are they not as engaged with their customers as they once were? Then it might be time for a 1:1 to see what is going on behind the scenes.
Finally, my holy grail: ramp time. How long does it take a new hire to get to quota? This critical number not only impacts revenue right where it counts but also determines whether a rep stays or not. Here’s an insider tip:
People who feel successful at work will keep coming back to work.
No, not Earth-shattering, but it might be if you reverse engineer it. 20 years ago I revamped a new hire sales training program for a computer manufacturer. It was taking reps 9 months to hit their goal. Ouch. (Best practice is 3-6 months and it’s getting longer – we’re now approaching 9 months again according to Mindtickle’s latest research) Yes, we took out a bunch of filler courses and implemented my “Just in Time” training approach, but we also did something a little sneaky. We lowered the bar. The VP of Sales and I saw the mass exit happening at six months and we worked together to get reps PAID if they were on track by this point in time. The result? We cut the turnover in half.
Help people win, and they’ll stay and keep winning.
Long story long, employee development has an impact on more than just revenue. There’s a reason training investments are up over 30% as an industry over last year. And if you don’t already have your enablement team running regular reports on these new stats, I suggest you get started or you’ll be late to the party. It may feel like we’re in a war for talent, but I assure you this is only the battle. Use your training investments strategically to attract, keep, and promote your people because this precious resource will become only more scarce.
Contact us today to request information on our customizable virtual sales training programs
available for reps (and managers).
[“Sales Shot” Workshop Recording]
Field sales, virtual sales, inside sales, telesales, channel sales – what’s the difference? Which career is right for you? How do you succeed in each role? Watch this session to learn about the evolution of selling, when and why companies embrace inside sales, and why others don’t (and shouldn’t!). We’ll cover quick tips on what skills, attributes, and behaviors are lock-fits for the many roles in each lane and how to rise quickly to the top.
Whether you’re hiring a salesperson, searching for a new gig, or working on a promotion (i.e. BDR to AE, AE to Manager, Manager to Director), we’ve got you covered in this Sales Shot!
Field sales, virtual sales, inside sales, telesales, channel sales – what’s the difference? Which career is right for you? How do you succeed in each role? Watch this session to learn about the evolution of selling, when and why companies embrace inside sales, and why others don’t (and shouldn’t!). We’ll cover quick tips on what skills, attributes, and behaviors are lock-fits for the many roles in each lane and how to rise quickly to the top.
Whether you’re hiring a salesperson, searching for a new gig, or working on a promotion (i.e. BDR to AE, AE to Manager, Manager to Director), we’ve got you covered in this Sales Shot!
Need help adapting to the new remote selling world? Request a demo of Outreach, the #1 sales engagement platform that closes more deals faster — so your reps can achieve revenue goals from anywhere. Companies that choose Outreach can expect a 387% return on the investment over three years and an 11% increase in sales productivity (valued at $6.9M). See what the #1 sales engagement platform can do for your business today.
Lauren Bailey Sales Training + Development, Sales Training Budget + Cost
Employee development is a critical part of attracting and retaining talent, but only a fraction of leaders include an annual development line-item in budgets. We wait until we have a budget surplus, a BHAG goal or change to surmount, or a massive hiring goal to outsource or hire training talent.
It’s sort of like call coaching for our managers, right? Employee development isn’t a fire drill (Panic! They don’t know something!) and often gets put off even though we all know the importance.
So hats off, leader! You’re ahead of the game by searching for annual sales training budget amounts.
Average spend on annual training per FTE is 1-3% of the total annual budget or 2-5% of the salary budget.
That’s $50.00 per $1000 of salary.
$100K employee = $5000/year | $50K employee = $2500/year
These are averages across all industries and employee types – forklift drivers, CEOs, high tech, landscaping, etc. If customer experience and loyalty are critical to you, go higher. If your industry is complex or your product is early in the life cycle, go higher. If you’re competing like mad for talent, go higher.
The average organization provides about 4 hours of training per month or a total of 45.5 hours a year. That’s right, if you haven’t trained since new hire onboarding, you’re lagging well behind average.
My company, Factor 8, provides sales training for virtual sellers and sales managers across all industries. There’s a complexity to the sale, a talent pool in high demand, and a real opportunity to differentiate with a better customer experience. Our per-employee prices for a full year of ongoing sales development fall in the mid to upper end of this range, so I can validate the research.
Employee development and career advancement are 2 of the top 3 things millennials search for when accepting jobs. And 50% of reps think their company provides them with the training they actually need to be successful.
We spend 5-10x a salary to recruit and hire someone and then a minuscule fraction of that to help them be successful and stay. It reminds me of this:
Hiring and keeping employees are two ends of the same boat everyone. I picture recruiting and training as our passengers here!
Here’s some great research to help you justify the spend:
Both HR Magazine and ATD site double the profit per employee that prioritizes training (priority = double the spend of not a priority). In fact, companies who invest a minimum of just $1500/employee will see 24% higher profits.
CSO Insights proved a 63% average improvement across teams where the manager was getting development (that’s average you guys…what would happen with an 85% increase on entire TEAMS?)
And great onboarding can cut a new hire’s time to quota in HALF. That could be 1-2 extra months of productivity on an already-shrinking rep lifespan. Worth it!
Again, I can validate these findings. Over twelve years of partnering with BDR, AE, AM, and Management teams across thousands of companies, we’ve seen lifts from 30-300%, with a huge percent of teams paying for the training before it’s even over with increased leads, pipeline, close rate, etc.
If you need an ROI model to get the spend, I recommend showing a 15% lift over about 90 days post-training if you’re still doing event-based training.
You can expect bigger spikes with face-to-face training, but longer-sustained skills with a long-term blended approach. Overall, if you can’t show at least a 5-10% lift, it probably isn’t worth the investment.
Not sure it will work? Do it anyway and measure the results. Remember this?
A recent Ambition study surveyed sales reps about training and 98% of them said they would stay with a company indefinitely if they got ongoing development.
IBM recently shared that employees who feel they cannot develop in the company and fulfill career goals are 12X more likely to leave.
Truth is, sales reps know less than they did 10 years ago and our customers expect more. If you haven’t added a development line item by now, you’re in trouble. If you haven’t increased it in the past five years, it’s time.
And, if it’s been more than a year since you provided training, increase your number.
Want more insight on how to budget for sales training?
Click here to watch our session on “How To Build Your Training & Development Plan” to learn what industry spend is for sales training, the critical skills you need for every sales role, how to partner with your sales training organization, and more!
Contact us today to learn about our customizable virtual sales training programs
available for reps (and managers).