STATE OF SALES TRAINING

EXECUTIVE SUMMARY

041021.51110

| EXECUTIVE SUMMARY |

In todays challenging economic environment no company can afford the missed opportunities that stem from an unprepared sales force. An organizations sales force drives the bottom lineand effective sales training is the bedrock of a successful sales program. The ASTD/ Intrepid/i4cp State of Sales Training Study (the study) explores how todays organizations are approaching sales training and sheds light on opportunities that organizations are missing to optimize those approaches or consider new ones. In our study, we asked survey participants some groundbreaking questions and the responses that we received provide new insight into the currentand futurestate of sales training globally. In these economically challenging times, there is great pressure to achieve revenue forecasts, a goal made more difficult when budget cuts affect the ability to attract top talent. The study gives both learning professionals and sales team members cutting-edge ideas for bringing the sales organization to a new level of performance.

DETERMINING THE FOCUS AND DELIVERY METHODS OF SALES TRAINING

The study inquired about five specific categories of sales training: selling skills product training industry training company-specific training sales management training. These five sales training categories all contribute to success, but organizations place more emphasis on some of them than they do with others. In fact, selling skills is the most critical type of training, accounting for more than one-third of the annual sales training hours. Product training receives the next largest share, while industry training, companyspecific training, and sales management training receive shares that are typically at a much lower level overall.

UNDERSTANDING SALES TRAINING LEADERSHIP

More than half (56 percent) of study participants entrusted sales training accountability to either the CEO or an executive-level sales leader. This statistic underscores the recognition of many organizations that sales training has a direct impact on the bottom line. Larger companies are most likely to place the primary responsibility for sales training/development with a sales executive or with a learning executive.

EXAMINING METHODS OF DELIVERY

The study examined nine specific training delivery methods to determine the most popular approaches used in delivering training content in three different areas: selling skills, product training, and sales management. In each case, it was clear that more traditional methods continue to trump technology-based methods, not surprising in the face-to-face people business of sales training. For example, internal instructor-led classroom training leads as the most popular method of delivering each type of sales training content. Other popular approaches are on-thejob learning, coaching/mentoring, and external instructorled classroom training. The study found that online or web-based methods, such as podcasts, wikis, and other technology-based approaches, are used far less often than more traditional methods.

Sales management training is the category of sales training addressed with the least frequencyless than annually, if at all. |

STATE OF SALES TRAINING TALENT MANAGEMENT PRACTICES AND OPPORTUNITIES

| FOREWORD |

DISCOVERING MORE ABOUT THE FREQUENCY AND DURATION OF SALES TRAINING

Of the five types of sales training, organizations provide product-related training with greatest frequencyquarterly or more oftenprobably because products tend to change more quickly than selling skills or sales management skills. Other trainingcompany-specific training, industry training, and selling skillsis more likely to be provided on an annual basis. Sales management training, on the other hand, is the focus addressed with the least frequency, less than annually, if at all. First-year sales team members tend to benefit the most from sales training37 percent receive 16 days or more of sales training annually. The volume of training afforded to third-year and tenth-year sales professionals drops dramatically. More than one-third (36 percent) of thirdyear sales professionals average only three to six days of sales training annually, and 39 percent of tenth-year sales professionals average zero to four days of sales training. The study also found that few people beyond the sales team receive any training in selling skills. Its possible that this trend reduces sales success, given the study also found a significant positive correlation between the degree to which respondents said theyd had success meeting their sales quotas and the degree to which non-sales managers had training in selling skills.

Contemporary sales trainers focus on consultative selling skills, listening skills, and relationship-building skills above all.
Other popular aspects of selling skills training identified in the study include adapting the sales process to specific buying processes, problem solving/diagnosis, closing skills, and prospecting approaches. The study suggests that its better to learn selling skills by sharing knowledge, but trial and error works, too. Included among the best ways for sales team members to learn selling skills are formal mentoring/coaching, trial and error, and observation. By contrast, technologybased learning methods such as online delivery, wikis, and other Web 2.0 tools are seldom used as a route to learning selling skills.

INTEGRATING SALES TRAINING INTO THE LEARNING FUNCTION

For most organizations, sales training decisions, such as design, delivery, budget, personnel, and content strategy, tend to reside within the sales function, making sales training more isolated from, rather than integrated into, the corporate learning function. Those who integrate their sales training into the broader corporate function are most likely to integrate content strategy and the delivery of training. But the learning design, staff training, and budgeting areas of sales training may not be integrated at all or only to a small extent. This makes the sales training function one of the last major training areas to remain somewhat separate from the organizations other learning and development professionals.

APPRECIATING THE IMPORTANCE OF SELLING SKILLS TRAINING

Todays selling environment tends to call for softer, or more people-oriented, skills rather than hard sell skills. Contemporary sales trainers focus on consultative selling, listening, and relationship-building skills above all. This suggests that the traditional profile of salespeople relying primarily on their powers of persuasion may be a relic of the past.

EXECUTIVE SUMMARY OF AN ASTD RESEARCH REPORT CHAPTER

The sales training function seems to be more isolated from, rather than integrated into, the corporate learning function.
Success meeting sales quotas was positively correlated with the degree to which sales training is integrated with the corporate learning function. The more integrated the sales training, the greater the success in meeting sales quotas. Simply put, integration is related to more sales. Based on a survey of more than 500 experts, the ASTD/ Intrepid/i4cp investigation into key trends in sales training contributes much-needed information to the industrys knowledge of the topic. Improving sales training programs clearly has the potential to contribute to the long-term success of any organization, yet it can be a struggle to maintain a successful sales training program. This research report will equip you with the statistics to inform important sales training decisions, provide you with a background on the current sales training environment, and give you policy recommendations that can get you started on the road to success now.

STATE OF SALES TRAINING

| ABOUT THE CONTRIBUTING ORGANIZATIONS |

THE AMERICAN SOCIETY FOR TRAINING & DEVELOPMENT

The American Society for Training & Development (ASTD) is the worlds largest association dedicated to workplace learning and performance professionals. ASTDs members come from more than 100 countries and connect locally in 136 U.S. chapters and 25 global networks. Members work in thousands of organizations of all sizes, in government, as independent consultants, and suppliers. ASTD started in 1944 when the organization held its first annual conference. ASTD has widened the professions focus to link learning and performance to individual and organizational results and is a sought-after voice on critical public policy issues. For more information, visit www.astd.org.

best known companies in the world, i4cp draws upon one of the industrys largest and most experienced research teams and executives-in-residence to produce more than 10,000 pages of rapid, reliable, and respected research annually, surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and next practices on these issues and trends. For more information, visit www.i4cp.com.

INTREPID LEARNING SOLUTIONS

Intrepid Learning Solutions is a dedicated provider of award-winning learning solutions that drive business performance. Founded in 1999, Intrepid offers consulting, technology and managed learning services to companies worldwide. In addition, the company offers packaged holistic learning solutions that can be rapidly tailored to support individual learner preferences and broader business goals. For more information, visit www.intrepidls.com.

THE INSTITUTE FOR CORPORATE PRODUCTIVITY

The Institute for Corporate Productivity (i4cp) improves corporate productivity through a combination of research, community, tools, and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the

EXECUTIVE SUMMARY OF AN ASTD RESEARCH REPORT

| CONTACT |

ASTD Research tracks trends, informs decisions, and connects research to practice in the field of workplace learning and performance. ASTD Research conducts a wide variety of ongoing studies on topics of interest to the learning profession. Recently released studies include: Annual State of the Industry Report Learnings Role in Employee Engagement Learnings Role in Globally Dispersed Workforces Tapping the Potential of Informal Learning Talent Management: Practices and Opportunities Executive Development: Strategic and Tactical Approaches The State of Sales Training

For more information about each study, as well as ASTD Researchs comprehensive benchmarking services, visit www.astd.org/research.

2008 by the American Society for Training & Development. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, contact copyright.com.

STATE OF SALES TRAINING

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| HOW TO ORDER |

Research reports published by ASTD can be purchased by visiting our website at store.astd.org, by calling 800.628.2783 or 703.683.8100.

| MORE FROM ASTD RESEARCH |

THE STATE OF SALES TRAINING study explores how todays organizations are approaching sales training and sheds light on opportunities that organizations are missing to optimize those approaches or consider new ones. The study will equip you with the statistics to inform important sales training decisions, provide you with a background on the current sales training environment, and give you policy recommendations that can get you started on the road to success now.
STATe of SAleS TRAiNiNg
AN ASTD ReSeARch STuDy
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| HOW TO ORDER |

Research reports published by ASTD can be purchased by visiting our website at store.astd.org, by calling 800.628.2783 or 703.683.8100.