What is the return on investment for sales training?  More commonly phrased - "What am I getting for my money?"

It's a question we are always asked, and thankfully we have the answer!

A study by CSO insights surveyed over 2000 companies. This study established that those companies with good training and processes in place had 15% higher sales than those that did not. 

If we take that study as being representative of the average business then the ROI calculation is quite simple.

The same study also established that the annual spend on "good sales training" is around $3,000 per person.  That might sound like a lot of money until you see the upside!

We have laid out two examples below but really you should do this calculation for your own business.  Note in our examples we use 10% as the sales upside instead of the quoted 15% - just to be conservative!

When you have looked over our examples, and then done your own version, you can contact us below.

That is unless you have another investment you need to make that yields over 3,000% return?

IN FACT, IF WE DON'T AT LEAST 20X  EVERY DOLLAR YOU SPEND WITH US WE WILL GIVE YOU YOUR MONEY BACK!

High margin technical products / services

Sales target per person = $3m

Margin is 35%

10% sales increase = $105K additional margin

Sales training investment - $3,000

Net increased profit = $102K

ROI = $102,000 / $3,000

= 3,400%

 

Low margin, high volume products / services

Sales target per person = $10m

Margin is 15%

10% sales increase = $150K additional margin

Sales training investment - $3,000

Net increased profit = $147K

ROI = $147,000 / $3,000 

= 4,700%

 

Don't believe the numbers?

Let's look at what happens if the results of the study are wildly wrong.  Say the sales upside is only 5% and the cost per person is $10,000.  A worst case scenario?

High margin technical products / services

Sales target per person = $3m

Margin is 35%

5% sales increase = $52.5K additional margin

Sales training investment - $10,000

Net increased profit = $42.5K

ROI = $42,500 / $10,000

= 425%

over 400% return in a worst case scenario.  Still likely to be the best return you make on any investment.

 

Low margin, high volume products / services

Sales target per person = $10m

Margin is 15%

5% sales increase = $75K additional margin

Sales training investment - $10,000

Net increased profit = $65K

ROI = $65,000 / $10,000 

= 650%

over 600% return in a worst case scenario.  Still likely to be the best return you make on any investment.

 

Want to talk to us? Given the above it's the logical thing to do!

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