When it comes to sales training, are you getting out what you’re putting in? Effective training is critical not only to your salespeople individually, but your organization as a whole.
However, assessing the ROI of sales training is tough. The “R” (return) in ROI isn’t easy to measure: how are you to know the exact return you’re getting? Sure, the “I” may be easier since it’s a tangible dollar amount, but it doesn’t mean much without the return.
While some companies just assume a skilled workforce is more productive and profitable and leave it at that, without the data to back it up, it’s hard to ensure time and effort are being spent effectively. Measuring ROI of sales training isn’t just something to ignore. Once you find a method that works for you, repeating the process will be effortless – and give you tangible data that can help move the needle. In this article, I’ll describe different options for measuring the effectiveness your sales training program.
The ROI of Training Events
If your organization has on-site meetings, they can be a great place to start as they offer a (relatively) straight-forward way to measure ROI. You can easily measure hard numbers like travel, facilities, materials, external speaker fees, etc. You should also consider adding softer numbers like lost selling time. For example, when Finastra revamped their sales training program they realized an annual savings of over $170,000 in expenses related to travel. Imagine how your organization can save and reap the benefits!
Measuring Results-Oriented ROI
Instead of measuring the ROI of training itself, you should also consider other factors . Perhaps thinking less about ROI on training itself and more about the impact of training-increased productivity and results. Measuring the following factors are a good start:
• Time and number of meetings to first sale
• Call-to-meeting ratios
• Market share
• Average deal size
• Number of new customers
• Revenue impact
• Win rates
• Duration of opportunities in sales cycle stages
By looking at these numbers, it will become easier to see where your training program is meeting or exceeding goals and where there’s room for improvement.
Another way to measure the effectiveness of training is by asking for feedback. However, it’s worth noting that it shouldn’t be the only metric, especially if you have a robust training program that may force employees out of their comfort zones.
If this is the case, you may want to consider ROE: return on expectations . This measurement looks at whether reps are doing what they learned during training. One way to do this is by looking at the sales objectives you have in place and tracking whether or not your sales reps are using what they learned in training – and if the tactics are getting results.
If you want to level up, you can ask trainees to commit to a tactical change post-training.
Lastly, asking post-training questions can go a long way, especially if it helps you connect directly to individual sales reps and their attitudes. This includes asking questions such as:
• Were reps prepared to use the skills learned right away?
• Did the training help solve issues that couldn’t be solved before?
• Were employees motivated to collaborate with others?
Put Your Best Foot Forward
While all of these are tangible options, you should determine which measurements are most important to you and your organization before diving in – and what methods you can use to get those numbers. Make sure you’re selecting measurements you can actually get – and that you’re not falling prey to confirmation bias.
After getting the results, you’ll be able to see what working and where you can improve, and how to move forward to better your program to create a supportive environment.
A version of this article was originally published on the Allego Blog. You can read the original post here .