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Why Training Is Your Best Investment
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Why Training Is Your Best Investment
by Eric Slife
Too many companies were fat and happy during good economic times and concluded, "If it's not broken, don't fix it." Salespeople's deficiencies (many were simply order takers) were masked because business was plentiful and relatively easy to win. Unfortunately, as the economy has turned downward, so have many company's sales. I recently spoke to a small business owner whose sales have dipped over 30%. Unfortunately this is becoming normal! Most companies will tell you their greatest asset is their employees. However, their actions don't support their words. One of the last things companies spend money on is training, and it's one of the first things they cut. You may be reading this and thinking, "You run a training company, so of course your view is biased." It certainly is! But, it is also a fact that well-trained employees are more efficient and productive. Poorly trained employees not only get less done, but typically they cost you money and additional manpower to fix their mistakes. Think about your own experiences in dealing with customer service departments. Over a year ago I discontinued using our internet and cable provider in large part because of their customer support staff. That's over $1,200 in lost revenue in just one year from one client. That doesn't include my mother who also switched based on my recommendation, plus lost revenue in subsequent years. However, don't take my word that training pays for itself. Bassi Investments, Inc. is a money management firm that invests in companies that invest in their people. They specifically develop recommended portfolios of firms that make significant investments in employee learning because those company's stocks consistently outperform stocks of companies that don't put a priority on training. The problem is too many companies view training as an expense and don't consider the long-term return on investment.
Here are just a few of the tangible and intangible benefits of training
1. Reduced Turnover: High turnover is devastating when you consider the expense incurred to hire someone and the amount of sales lost when someone leaves. 2. Improved Morale: When employees are happy, they are more productive and efficient, not to mention less likely to bring a lawsuit against your company! 3. New Customers: Your salespeople are the first, and maybe only, impression prospects have regarding your company. Now more than ever your team needs to stand out from your competition. 4. Fewer Lost Sales: If each salesperson brought in just 10% more sales, or retained 10% more of their current customers, how much would that improve your bottom line? 5. Higher Profit Margins: Top salespeople not only sell more, but they also sell at higher margins. Simple negotiating tactics can instantly result in thousands of dollars lost or gained in the blink of an eye. These are just 5 benefits that can easily result in 6-digit swings for smaller companies and considerably more for larger companies. If you still don't think sales training is one of the best investments you can make, take 60 seconds to try out our return on investment calculator. You will be amazed at the impact just a 2.5% increase in sales or profit margin can have on your company. Investing in your employees (and yourself) is considerably less volatile than other investments. More often than not, it will produce your greatest return!
About the Author
Eric Slife, president of Slife Sales Training, Inc., provides companies with a comprehensive sales and sales management training program called Team Training. Team Training gives companies unlimited, on-demand access to North America's premier sales and sales management trainers. For more information and a complimentary MP3 download, "Top 10 Voice Mail Blunders," visit: http://www.salestrainingcentral.com.
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