“Should we invest in this program nationwide?” they asked.
To help decide, this client selected three cities in which to pilot a negotiation skills training program. The idea was to train half the total population in each city, then make comparisons between the trained and untrained groups.
Thanks to the clear results show by this measurement, a $500,000+ initiative was launched in over a dozen U.S. cities with spectacular results.
Executive Summary
- Business Goals: increase the volume of unit sold without sacrificing margins, improve strength of customer relationships, grow revenue per rep
- Performance Challenges: multiple new competitors had entered the market, lack of distinct value, frequent RFPs
- Improvements in volume, revenue, and margin
- 62.3% increase in monthly volume (see Graph 1)
- 27.8% increase in monthly revenue (see Graph 2)
- 2x the increase in margin (see Graph 3)
- Significant improvements in strength of customer relationships pre/post the training
- Marked improvements in the skills and strategies used in sales negotiations
Approach
We conducted a Impact Metric™ analysis to quantify the effects of the pilot program when compared to three similar control groups.
- Key measures: monthly revenue, volume (units sold), and margin (discounting allowance)
- Training: a two-day negotiation skills training program from a leading supplier
- Time frame: 3-5 months pre-training and 4-6 months post-training, depending on the group
- Population: three control groups and three trained groups were randomly selected and compared over the same time frames, in the same markets, against the same competitors, selling the same products
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