Small businesses struggling to recover from recent declines in the economy may need to re-examine the training of their sales force, said Shape Your Business mentor Mike Reddy.

In an attempt to stay afloat during the global economic crisis, many small businesses cut back on their sales force, letting go of experienced salespeople to reduce payroll expenses.

Now those companies are finding that the replacement salespeople are not as familiar with the products and services they are selling. This leads to reduced sales and decreased value for customers because sales team members are less able to match product features and benefits with customers’ needs.

“Sales are the engine that drives business,” said Reddy, who has been advising businesses in performance strategies for more than 15 years. “If salespeople aren’t performing, then neither is the business. Properly training a sales force increases sales and customer satisfaction, enabling a business return to pre-recession levels of success in a shorter time.”

As principal of Shape Your Business, a Sydney-based firm supplying consulting and mentoring services for small- and medium-sized businesses, Reddy has noticed a sharp increase in clients with sales performance issues. Lack of training and product familiarity among an inexperienced sales force is a common contributor to these issues, he said.

Reddy notes that familiarising a salesperson with all the features and available options for the products they are selling is paramount. Although customers will buy because of the benefits provided by the product, thorough understanding of its features and options allows salespeople to make better recommendations. This in turn leads to higher confidence in purchasing and greater customer satisfaction — the keys to closing more sales and higher customer retention rates.

Reddy stresses that the training process must begin with a proper induction into the company’s sales process and strategy, including:
• Thorough study of product specifications and current marketing materials
• Observation of experienced sales reps making and closing sales
• Rehearsal of sales presentations
• Allow each salesperson to develop their own presentation and providing critique of
the presentation

“An induction should be more than just handing them the instruction manual,” Reddy said.

“It should familiarize the new salesperson with the entire selling process and give them complete understanding of the product they are selling.”

Reddy also recommends regular training updates. Updates should include any new information about changes to the products, but equally important, said Reddy, is reviewing the team’s existing knowledge and sales tactics to keep them fresh.

Another key component of a sales team’s training, according to Reddy, is objective analysis of competitors’ products or services.

“Sooner or later, salespeople will be faced with the prospect who has done their homework and can quote details about the features and benefits of a competitor’s product,” said Reddy.

“When your company’s sales reps know the same information, they can explain to customers how your product meets their needs more effectively than rival products.”

The bottom line, said Reddy, is that a properly trained sales team is able to close significantly more sales and substantially increase a company’s revenue. Whether a company is rebuilding its sales force or working with an experienced team with slumping sales, updated and thorough training may be the key to boosting sales performance, he said.