Software Sales Tips by Matt Wolach

Sales Tips

Do we need sales training?

Do we need sales training?

If you’ve ever asked yourself “Do we need sales training?” you’re not alone. In software sales, the question of whether sales training is necessary often surfaces. Through my experience and the inquiries I receive, there needs to be more clarity about when and if software sales training is appropriate. Today, drawing from my journey, I’m shedding light on this topic.

Sales training isn’t just an option but necessary for continuous growth. In my career, I’ve observed many who’ve remained static, their growth stunted due to a lack of investment in personal development. This stagnation is a pitfall you want to avoid at all costs. Growth can stem from various sources: educational videos, books, mentorship, and sales training.

The need for software sales training varies across the three main sales types within the software industry: outbound, new sales, and upsells/renewals. Each stage is crucial and might require targeted training to enhance performance. See how they differ below:

  1. Outbound Sales: The focus here is on generating leads. If your lead generation is below industry benchmarks or your goals, it indicates that your outbound strategies need refinement through sales training. Often, the issue lies not in the effort but in the approach and messaging.
  2. New Sales: The critical metric is the close rate, particularly from demo to close. A rate below 20% suggests significant room for improvement, which sales training can address. But don’t settle for just reaching the benchmark; strive for higher to ensure competitive growth.
  3. Upsells and Renewals: Often overlooked, this area is vital for sustainable growth. A strong indicator of success is your Net Retention Rate (NRR) or Monthly Recurring Revenue (MRR) growth rate. NRR rates below 100% are a red flag, signaling the need for focused sales training to empower those responsible for account management and customer success with the necessary skills to drive upsells.

In conclusion, sales training is indispensable across all stages of the software sales process. It’s not about if you need it, but when. Continual growth, benchmarking, and a proactive stance on training can propel you and your team to surpass your goals, ensuring you’re not just keeping pace but leading the charge in the software sales world.