head of the class

A lot of words have been used to describe salespeople, and most of them are unprintable. Veteran sales trainer Steve Waterhouse has come up with a good, clean one. He compares salespeople to cutlery—but not in the viciously cutting way you'd expect.



"Salespeople are like knives," the 25-year consultant in Scarborough, Maine, says. "They constantly need resharpening." It's a pointed comparison, and it underscores a big challenge facing all outdoor retailers: how to best train employees. Training is expensive and time consuming. It accounted for 2 percent of total payroll for all companies in 1998, up from 1.5 percent in 1996, according to the American Society for Training and Development.

Does training have to be so expensive?

Not necessarily, according to experts. Advances in electronics—videos, CD-ROMs, the Internet—have sparked widespread discussion throughout the outdoor retailing universe as cost-cutting alternatives to hiring a grinning sales trainer. Many managers appear to be pondering—though not yet embracing—these alternate sources for training.

The prevalence of retailers shifting from in-person seminars to training videos and the Internet is difficult to pin down. But, the experts say larger chains are much more likely than the mom-and-pops to incorporate videos into their training programs.

Still, it makes sense for all outdoor specialty stores to use some form of electronic-based training. No one urges the demise of real, live people in training programs. But the time has come, experts say, for retailers to consider other options as part of a comprehensive sales training program.

Sticking with Tradition. There may be some hurdles to overcome, as evidenced by the philosophy of one mid-size outdoor retailing chain. Dan Nichols conducts sales seminars the same way most other outdoor retailers do: He has one of his veteran staff members at Active Endeavors, a Chicago-area chain of six stores, sit down with employees after-hours to train them.

"You get 25 people in there at once, all getting paid overtime for an hour and a half, and that adds up," says Nichols.

But it beats other alternatives, such as hurling training videos at workers and expecting them to set the cash registers on fire.

"Interacting with a seasoned sales associate would be more valuable for employees than having them sit down in front of a TV screen or computer monitor," says Nichols. "In the long run, with electronic training, I think you're doing more harm than good. Definitely the potential for it is there, but it's not something we've explored."

One person who has is Peter Whittaker, a well-known mountaineer who opened a store near Mount Rainier in Washington. He's produced a video about the basics of mountaineering that he sells to other shops. The video can be used to train employees and also serve as in-store displays for shoppers.

Putting Technology to Use. Videos or CD-ROMs can play a key role in any retailer's training program, according to Larry Laufer, director of the sales institute at Towson University in Towson, Md.

Videos and CD-ROMs are best used to teach employees basic, repetitive tasks—for example, how to use a computer or other machine, says Laufer. "After a new hire reviews it, have them go to a mentor who can answer any questions in person."

Beyond videos and CD-ROMs lies, of course, the Internet. Currently, sales training is one of the top reasons for Web conferencing—which essentially refers to several people logging onto the same Web site at the same time to "discuss" something.

A company in Toronto, Canada, claims its Web conference service is a cheaper alternative to in-person training sessions—especially if employees are based all over the country.

"It's easy to access and easy to use," says Steve McWilliam, vice president of marketing at Astound.com, whose service is free for up to three people. Beyond that, the cost is $500 per person per year, for unlimited use.

"Instead of bringing people to a classroom, we bring the classroom to the people," says McWilliam. "This doesn't replace face-to-face training, but it's a great complement to other [in-person] training programs."

Most experts and retailers view videos, CD-ROMs and the like in relation to training programs that feature live people as a complement. REI, for example, preaches the benefits of employing expert sales associates whose knowledge mostly comes from experience.

"We hold regular training sessions, but we don't use videos in a significant way," says Mike Foley, spokesman for the Seattle-based chain of 60 stores. Internet kiosks in most REI stores each contain 45,000 pages of product information. The kiosks are not only for customers, but also for employees to keep abreast of new products—a form of training itself.

Looking for Options. As for using live sales trainers, retailers should consider a cheaper option than tying up a star employee to act as teacher or hiring an outside hot-shot to conduct a dog-and-pony extravaganza.

"I think every retailer, even the mom-and-pops, should go to their suppliers and ask them to participate in the sales training of their employees," says Laufer. "After all, it's their products that are being sold."

If sales are all about closing, then follow-up training is the key to keeping sales staff sharp, says Waterhouse. The consultant came up with another alternative to traditional sales training: audio-based mini-seminars.

After sales associates are first trained, they call a voice mailbox for a short refresher course on the subject they need to brush up on. Each 10-minute message gives them tips and examples designed to overcome their area of weakness.

"Tapes and other electronic devices alone might not be optimum training tools, but they're certainly a lot better than nothing," says Waterhouse. "They are a good, reasonable alternative.

"The bottom line is, all retailers need training programs. With the competition that is out there today, you cannot be second best. You can't afford to lose any sales."