ROI AND SALES TRAINING
Research clearly shows that you will get on average a 20% increase in sales with quality sales training. It also shows that you can double this by coaching your salespeople afterwards.
Sales training represents the least amount of money you can spend to get the most improvement in sales performance. No other investment, strategy or activity can achieve this.
A Financial Case for Sales Training
On average, it costs between $100,000 and $200,000 to replace a salesperson in the high tech industry when you consider the recruiting, interviewing and hiring process.
Organizations spend considerable time and money on new hires but are reluctant to spend a few thousand dollars per person on professional sales training that would give them the essential selling skills they need to be successful.
Results of Sales Training
• New skills, new confidence
• New hires up to speed quicker
• A competitive edge
• More people make and exceed quota
• Employee retention
Two Questions when Assessing the Cost of Sales Training
1. How many of your salespeople are not making annual quota?
2. What is this costing you in lost revenues each year?
- Annual quota for a salesperson: $2 M
- Average value of each sale: $100,000
- Must make 20 sales to make quota
- An increase of 20% equals 4 new sales per year or 1 new sale per quarter
New Sales Due to Sales Training
- Profit margin is 30% which is $30,000 per sale
- Additional profit per year is $120,000
- Average cost per person for sales training is $3,000 which includes: fee, transportation, accommodation and all other expenses.
- Profit divided by the training cost equals ROI 40 to 1