Sales training in a recession

Most training is often regarded by FDs and senior people managing a smaller budget as a 'discretionary spend' and one of the first things to get crossed off the list of priority activities. But there's plenty of enlightened managers out there who take a different view when it comes to sales training. And guess what? I agree with them. Here's my persepctive.....

If the outlook feels pretty grim heading into 2009, it’s worth remembering the age-old business principle that you can’t (only) cost-cut your way out of a downturn. In previous recessions, the businesses that continued to do well were those that concentrated their energy and resources on ruthlessly driving the top line – improving their selling effectiveness, working harder to find new customers and taking revenue from lazy rivals, by demonstrating business value rather than just cutting prices and costs.

It’s no different today – the good news is that for companies able to refocus their efforts single-mindedly on the sound principles of professional selling, the opportunities are out there to keep the revenue flowing, and push weaker competitors out of your markets. Yes, there’s less business around, so it’s a question of how hard and skilfully you work to find and win what’s there. That's why proactive sales directors will right now be looking at ways to re-energise their teams, and making a small investment in sales skills training or coaching is one weapon in their arsenal.
Inevitably, the vulgar question of money and budget rears its head.........

Regarding the good old ‘budget’ question: the ‘sales textbooks’ would say that “I haven’t got any budget for this” is either:

An objection about value – i.e. even if it was free, I still wouldn’t do it, because I see no value in it

An objection about price – i.e. if it was free, I would do it immediately, because it is of course important.

I'm going to make the rash assumption that you, dear reader, understand the value of this type of training in principle. So it becomes a question of how to justify the price, compared to other things you are currently spending money on, or losing money on. If we can define the value of it, we can justify the price.

Often, this is a comparative exercise. That is, it is not a question of having no money for anything at all, (if the FD has removed all the teabags from the kitchen, now is a good time to head for the exit) but a question of what we spend the limited funds on, given that we will continue to buy various business services even in a downturn. This is where us in Sales get to have a go at the Marketing Director's budget, among others...

How much is the company still prepared to spend on various nebulous marketing activities, like exhibition stands, mail-shots etc. that generally have a woeful return in terms of quality business leads? Get a fraction of the Marketing Director’s budget diverted towards helping your guys become more effective at finding new business, retaining clients and selling more to existing clients. Far more likely to positively affect the top line. (He might not see it your way though...!)

What other expenditure choices is the company making at the moment? I am willing to bet that you will still be spending tidy sums on all sorts of discretionary things that are not necessarily as important. Often, finding the budget for priorities, as you know, is about making the case to the FD or the MD to take existing money from another budget.

I know I am probably preaching to the converted. The thing is, in this climate, you have to be very precise about making the business case, and that means doing the maths, lining up your ducks and then arguing the case. I used to work for an MD who thought the first thing he should cut when business looked a bit bleak was a few sales heads, 'cos they drive about in Mercs and cost a lot of dough to employ. Needless to say, he was an accountant who looked at everything through a calculator. What he couldn't get his head around was that fewer (well trained)salespeople will normally mean less revenue, which means......oh shit....we better cut more costs then....and so on, spiralling into the void of business doom.