Measuring the Impact of Sales Training

 

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I think the more you can narrow the scope to what the “training” is trying to improve, the more likely you are going to be able to correctly measure its impact. If you are just looking at revenue numbers, then there are far too many variables. I like to look at the revenue lifecycle and break into three parts – Demand Creation, Opportunity Management, and Account Management – and then ask, “Where does it hurt?”

 

This gives us a much better idea as to how to address the problem. Each area of the revenue lifecycle has certain key performance indicators that are normally associated with it. Demand Creation is perhaps the easiest to quantify because many executives have numbers associated with first calls, lead tracking, lead qualification and the first calls that translate into evaluations.  Opportunity Management usually requires a little deeper digging, but we are looking for numbers such as winning percentage vs. competition, winning percentage vs. no decision, average deal size, margins, and where deals stall in each stage of the sales cycle. On an even more micro-level are KPI’s with qualification criteria such as deals with executive level sponsorship, sources of urgency, and total cost of ownership calculations. Account Management typically has retention rate, revenue and reference-ability targets but can also have “non competitive evaluations” and “cross-sell” targets as well.

 

Once we understand which area of the revenue lifecycle needs attention and prioritize the most pertinent metrics that indicate success, we then have a good foundation for measurement. From there we like to see if there is a process problem, a people /skills problem, or a management / tools problem that is keeping the client from reaching their revenue targets.  It could be and often is a byproduct of all three, which requires significant change management in the sales organization. But despite the level of engagement – the numbers are the numbers and we let them guide us as to our level of effectiveness.    

 

If you are like many of our clients and don’t know how to drill down and understand if you have a create / win / grow problem or if you do and can’t uncover if it is a process / people / management issue – then we have a great assessment tool that can help. E-mail me if you want to take the survey.

 

 

 

 

 Scott Miller

smiller@complexsale.com     

 

 

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