Strategic Sales Training Builds Profits

To be an effective and prudent investment, employee training must serve strategic issues and objectives. One such goal for many companies might be to sell "deeper" into a current customer base.

We recently worked with a firm recognized for winning graphic arts awards and a reputation for handling difficult jobs. Through a customer survey, two surprising negative issues for print buyers were uncovered — billing accuracy and dispute resolution. In today's economic climate, these concerns are becoming increasingly important in developing buyer-seller relationships.

The issues and inherent frustrations reported by buyers were reviewed with sales management and owners. It soon became clear that because this company's market reputation and differentiation were built on producing the "difficult-to-impossible," its opportunities to incur alteration charges were greater than those of competitors.

Sales reps positioned the company to prospects as a graphic arts producer with unique production capabilities and a reputation for winning awards by producing the nearly impossible. Buyers responded by initially awarding the firm work matching its reputation. Understandably, unexpected production cost upcharges weren't uncommon.

What followed in account development was a natural tendency by buyers to avoid the potential for upcharges and alterations, so they sent their less critical or complex jobs to other printers. Buyers awarded this supplier mostly high-risk work they wouldn't trust to anyone else.

In effect, this company was sitting atop significant business potential with current clients, but to reap this potential it had to change its positioning by altering its sales team's training and performance.

The "scene" created was a buyer distraught over alteration charges that had not been confirmed in detail, but appeared on the invoice. The uniformity of what evolved in the role-playing scenes was a surprise.

Without exception, every sales rep (including owners) rolled-back and negotiated down some or all alteration charges when confronted by angry "buyers," thus believing their buyers' wrath had been relieved. Without exception, buyers (sales reps acting as buyers) reported not only wasn't their initial anger assuaged, but now they also were fuming over the trust they felt had been violated.

The sales team realized these "buyers" had come away from the scene with a less-than-satisfactory resolution to their concerns and a weaker working supplier relationship.

Next, what behavior role-playing buyers would have preferred was explored. The sales team was asked, "How could this unfortunate confrontation have been prevented?"

The key is to examine what buyers really want. In this case: to be notified immediately when alterations are about to be incurred, have alterations detailed and faxed to their offices at the earliest opportunity, and allow them to decide which charges they will incur.

Two weeks later, another sales training session was begun by asking for success stories of how alteration charges had been handled. Not surprising, a rookie sales rep had "followed instructions to the letter."

The magnitude and long-term implications of his behavior with the buyer were staggering: the buyer thanked him for the prompt, detailed change-order that was faxed (over $3,000 on a $10,000 job); details of the faxed change-order allowed the buyer to immediately fax the same message to his client for approval; all suggested alteration charges were accepted through a return fax, which required less than two hours; and the buyer asked the sales rep to come by in two weeks to look at more work.

Not every client's work wins the adoration of local ad and design clubs, but there are several messages for all in this scenario.

First, we don't necessarily know how our actions affect others without asking them, especially customers. Assuming we know what buyers' opinions are of our performances is high-risk speculation.

Second, results of primary marketing research should be an instrumental part of training program development. Training issues gleaned from primary market research with customers has significantly greater impact to employees than issues put forth by management.

Third, customer-focused, strategic training, defined as "any training delivering more of what customers expect and want," may be the best investment CEOs can make. It may be the only investment that can grow exponentially in its corporate contribution. Nearly all other investments depreciate or wear out.