Think your sales organization has to invest big budget into sales training to perform like the best sales teams in the world?
Based on the responses of nearly 2,400 sales leaders from around the world, the recently released Salesforce 2015 State of Sales research report provides some fascinating insights into not only how much high performing teams spend, but more importantly how they allocate sales training, and planning budget.
Sales Training Spend at High Performing v.s. Underperforming Sales Organizations
It isn’t a huge surprise that companies with high-performing teams invest in their sales reps by allocating more budget to sales training. As you can see by the chart below, there is a direct correlation between higher sales training spend and sales team performance. Underperforming sales organizations are nearly ⅔ more likely to spend less than $1k.
What is a surprise is that the dollar amount companies invest in sales training hasn’t changed much in years. According to the 2011 Skills Reinforcement Report by CSO Insights, 40.2% of companies spend over $500- numbers nearly identical to the 2015 Salesforce report.
So if sales training spend- and budgets for those activities- are flat year over year what inspiration can the sales management of underperforming sales teams draw from the leaders of top sales organizations?
How top performing sales managers allocate their budget…
It turns out, sales management within high performing sales organizations spend their budgets very differently than those heading underperforming sales teams. Overall, they invest more heavily in cutting edge tech solutions than their underperforming brethren.
Sixty-six percent of high performing sales teams are currently using, piloting or planning to use tech-based sales coaching tools in the next 12-18 months. Only 28% of underperforming organizations report actively using sales coaching tools like sales rep assessments and technology that predicts performance- with another 14% planning on rolling out sales coaching tools in the near future.
Another huge discrepancy can be found in spend on tech solutions for sales performance management. 55% of sales management within high performing sales organizations are already utilizing sales performance management technologies- and another 21% are either piloting sales performance management programs or are planning to roll it out within the next 12-18 months.
Sales management who head up underperforming sales teams are nearly 50% less likely to see this as a priority in their budgets.
Sales planning and forecasting is another area where those who invest tend to be high sales performers. 77% of high performing sales organizations are utilizing, piloting or planning to utilize tech-based sales planning and forecasting systems. Only 40% of underperforming organizations use sales planning and forecasting technologies.
If your sales organization is struggling, consider following the example of high performance sales teams and embrace tech solutions for sales performance management, sales planning and forecasting and sales coaching, such as Selleration™.