Sales Training, a Financial Burdon or a Revenue Boost?

Author: Christina Bruce

Sales Training, a Financial Burdon or a Revenue Boost?

As sales leaders, managing a limited budget can be a daunting task, especially when it comes to sales training. Typically, when the budget is tight, training (or professional development) is one of the first things to be stripped. However, what if we told you that investing in sales training could actually boost your revenue rather than being a financial burden?

In this article, we will explore the value of sales training, its potential return on investment, and how cost-effective virtual or blended training can be.

Before we delve into the budget-friendly benefits of sales training, let’s consider the true value of a single sale. In many cases, a high-value deal can significantly impact your company’s bottom line. This is the starting point for understanding why investing in sales training makes sense.

Imagine this scenario: if a sales training workshop costs roughly the same as the value of one sale, would it be a worthwhile investment? The answer is a resounding “yes!” Let’s break down the math.

The Return on Investment (ROI)

If your sales team participates in a training workshop and acquires techniques that help them close just one additional deal as a direct result of the training, the workshop pays for itself. This means that even a single extra sale can cover the cost of the training. In other words, the return on investment is at worst neutral and that’s only the case if your only measurement is new business. Think of it as an opportunity cost. Without training, your team might miss out on potential deals, leaving money on the table. With enhanced skills and strategies, they will be better equipped to engage leads, address objections, and ultimately secure more sales. However, the benefits of training extend beyond a one-time gain; these skills will continue to yield results in the long run and contribute to your team members feeling invested in.

RAIN Group Center for Sales Research set out to uncover the distinctive practices of Top-Performing Sales Organizations that yield superior outcomes. Analysis was conducted, involving data from 472 sellers and executives representing companies with sales forces ranging from 10 to 5,000-plus sellers. What they uncovered was remarkable.

While it might be anticipated that organizations with robust sales training programs would exhibit better results, the contrast was striking. Those boasting the highest overall sales training ratings (with mean scores ranging from 4.0 to 5.0 out of 5.0) displayed an average win rate of 58%. In contrast, those with lower ratings (mean scores from 3.0 to 3.9) had a considerably lower average win rate of only 47% (Top-Performing Sales Organization | Sales Research | RAIN Group (rainsalestraining.com)

In terms of win rate, even marginal adjustments can exert a profound influence on an organization’s overall revenue and profitability.

The Cost-Effectiveness of Virtual or Blended Training

In today’s digital age, traditional in-person training is no longer the only option. Virtual and blended training programs have gained popularity for their cost-effectiveness. Here’s why they are a budget-friendly choice:

Reduced Travel and Entertainment Expenses: Traditional in-person training often comes with travel and entertainment (T&E) costs, which can quickly add up. Virtual or blended training eliminates these expenses, making it a more affordable option.

Flexibility and Convenience: Virtual training allows your team to participate from anywhere, reducing the need for costly travel and accommodation, and minimizing downtime travelling to the training event. Blended training combines online modules with occasional in-person sessions, striking a balance between cost-efficiency and hands-on learning.

Proven Effectiveness: Virtual and blended training programs have shown that they can deliver excellent outcomes without the need for in-person interactions. The convenience of virtual training can lead to higher participation rates, ensuring your team gets the knowledge and skills they need to succeed.

When you’re faced with the challenge of a limited budget, remember that sales training is not just an expense; it’s an investment in your team’s growth and your company’s success. By providing your sales team with the tools they need to exceed their targets and drive revenue, you’re setting your business on the path to success. Additionally, embracing cost-effective virtual or blended training can further stretch your budget and ensure your team is well-equipped for success.

Finding the best sales training program for your budget, team size, focus, and needs is not always easy. To give your teams everything they need to succeed, we have training options to suit businesses of all sizes and budgets. Explore our suite of training programs here

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