Introduction
The purpose of this study is to evaluate the impact of sales coaching on sales results and ROI.
Methods
We evaluated one region of the BDL Company. (9 sales representatives) and tracked sales results before and after coaching interventions.
The coaching interventions consisted of one to two days of field coaching. This coaching focused on observing a sales representative's performance to a selling skills process in a doctor's office. This coaching was conducted by Jim Price of TAP Consulting Company. Jim has over twenty years experience in medical and pharmaceutical sales and has logged over 500 hours of sales coaching. Sales representatives were sent out a sample presentation in order to set expectations for the visit.
The measurement of success was the number of referral cards sent in before and after coaching interventions. The referral card is a card the doctor faxes into a surgery center to refer a patient for surgery. We measured number of cards sent in by the group three months prior to training vs the number sent in three months after training. The referral card is an objective measurement of a successful sales call because it is what the representative closes for on each call.
Results
Before the coaching interventions the test group sent in a total of 8 cards. That same group sent in 367 cards after coaching. The average number of cards sent in per representatives was 1 per representative before coaching and 41 per representative after coaching.
The 367 referral cards sent in after coaching yielded 18 surgeries at ,000 per surgery for a total increase in revenues of ,000. The cost of the coaching interventions was ,000 which resulted in a profit of ,000 and a Return on Investment of 500%.
Conclusion
Coaching interventions conducted by a well trained sales coach impacts sales results and yields a Return on Investment (ROI) of up to 500%. Sales coaching is one of the best investments you can make in your sales team.
"When properly implemented, high ROI values can be achieved with programs on Leadership, Team Building, Management Development, Supervisor Training and Sales Training." "An ROI of 100% to 700% is not uncommon with this type of training."
Jack J. Phillips, Ph.D (Training Measurement Key Opinion Leader)
