Companies spend upwards of $5,000 per employee on sales training initiatives. But how do you know if it’s working? You need data to back it up. What metrics should you track? What pieces of data do you already have?
There are five key performance indicators to ensure you are seeing returns from all of your sales training investments.
- Cost: Understanding the real cost investment per learner is the first step in determining if your program is generating returns. In the U.S., companies spend an average of $5,000 per sales member on training annually. This includes travel, materials and time cost.
- Adoption: This number looks at the percentage of your team that is using and actively participating in your sales training methodology. Most organizations see more than 75 percent adoption, which sounds pretty good until you think about the reverse. If you’re spending $5,000 per person and 25 percent of your team isn’t using the program, you’ve got a serious leak in your sales training pipeline. The best way to find this percentage is to take attendance in training activities and periodically pop-quiz your team on sales method principles. You’ll quickly see who is following your prescribed method and who’s not.
- Speed: You probably know the length of your training program already, but by calculating the time it takes a new hire to become proficient, will tell you a completely different story. The average time it takes to get new hires to the same performance level as tenured sales reps is 381 days. The caveat here is that many of these onboarding programs are one-time events. A new hire starts, sits through a few weeks of training content and then is turned loose. Research shows that ongoing daily or weekly training helps reps become proficient in less time. Your January hires could be closing deals like tenured reps by Q4 instead of Q2 of 2016. Figure out the win rate of your tenured reps and then monitor the new hires to determine how long it takes them to get there with the training you provide.
- Quota: Like cost per learner, determining how many of your reps make quota can help you make the case for an update to your training program. Less than 50 percent of B2B sales reps make quota each year, but organizations that provide ongoing coaching and training reinforcement have four times more reps meeting the quota. Take a look at your numbers and re-evaluate your current training process. In addition to being proficient and having higher adoption rates, ongoing sales training can have a direct impact on your revenue stream.
- Return: This is the number one metric your executive team wants, which of course means it can be one of the hardest to calculate. To help you determine sales training return, use this formula: dollar amount of opportunities driven by top learners divided by cost per learner. You’ll need a few pieces of data to get here, but pulling reports from both your customer relationship management and learning management system should provide a baseline to calculate your sales training ROI.