Sales Training & Development Expenditures
To inform a business pitch by identifying information on company spending for sales training and development; specifically interested in growth over the past few years, types of organizations/people spending is used for (e.g., inside sales vs. traditional sales), and specific industries that are prominent in the market.
- In 2018, US training expenditures (which include payroll and spending on external products and services) declined by 6.4% to $87.6 billion. Spending on external products and services rose, however, from $7.5 billion to $11 billion. Most of the declines were seen in extraneous training expenses like travel, facilities, and equipment.
- Companies are spending more on training payroll by 13% ($47 billion in 2018).
- According to Statista, the decline within the US in total workplace training expenditures was also observed from 2017 ($93.6 billion) to 2019 ($83 billion). This decline is tempered, however, because from 2016 to 2017 there was an unusual ~$23 billion jump in training expenditures which may be balancing out in later years.
- Sales training delivery often uses online training programs (82%), according to the 2018 Training Industry Report by Training magazine.
- In a 2019 State of Sales Training Report, the Association for Talent Development found that 42% of organizations surveyed felt that sales training helps meet their sales goals to a high or very high extent.
- The average B2B company spends $2,000/year providing training to an individual salesperson. The majority of companies surveyed (27.3%) spend only $500-$1,500 per year, 27% spend $1,501-$2,500, 17.5% spend less than $500, 12.6% spend $2,501-$5,000, and 9.5% spend more than $5,000 per year. 6% of companies surveyed do not offer sales training.
- Salesforce.com reported a direct correlation between higher levels of sales training investment and sales team performance. “Underperforming sales organizations are nearly ⅔ more likely to spend less than $1,000 on sales training per sales rep annually.”
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