Choosing between centralized vs decentralized sales training programs can be a tough choice. Each has their own merits. This discussion is an ongoing one as to which method is best. Both centralized and decentralized training options can benefit an organization.
The location of the sales training is dependent on several factors. These are:
- The size of the company – whether it is local, national, or has international offices.
- The company’s financial position and whether it can afford the different training options.
- Availability of sales trainers
- What does the training program entail for the trainee?
- Lastly, the nature of the product or service being sold.
This post’s main aim is to explain the differences between the two sales training systems and the advantages and disadvantages to understand both better.
What Is Centralized Sales Training
Centralized sales training refers to a staff sales training model in which a group within an organization oversees all forms of staff training. The group is responsible for planning the sales training, designing and developing the training program, implementing it, and evaluating the outcomes.
Centralized training is found in large companies, that are in good financial positions to cover the cost of this type of training. The training is completed at a central location where all members travel. This training sees relatively large numbers of sales trainees coming for training, mainly new hires. They do this to assimilate the new sales recruits into the organization. Centralized training is also for senior sales staff who require advanced sales training.
The centralized training courses are over a defined period such as 1-2 weeks.
Advantages Of Centralized Sales Training
Highly Skilled Fulltime Trainers With Sophisticated Training Facilities
With centralized sales training, you have access to highly skilled, full-time sales trainers to provide the necessary sales training and upskilling necessary. The sales trainers also have access to sophisticated training facilities to aid learning.
These Formal Courses Are Scheduled Over A Definitive Period
These formal training courses are scheduled over a defined period of time and have specific goals at the end. Because of this, they tend to save time. The courses are formally structured in a planned and presented way with specific outcomes. For example, on Monday, we learn interpersonal skills, and on Tuesday, we learn how to improve negotiation skills.
Reduced Costs Due To Everyone Being Trained All At Once
Centralized training can lead to reduced costs because everyone is being trained simultaneously. For example, you may have one full-time instructor and 35 students being taught all at once. Once training has been established, an increase in production from the sales team would be expected.
Consistency In Training
A major plus for centralized training is consistency. Every person who undertakes a training program is trained the same. All coursework, lectures, and material are uniform throughout the course. Everyone leaves with the same knowledge base.
Better Product Knowledge
With centralized training, you would expect the sales candidate to return with significantly better product or service knowledge based on the training provided. Better product knowledge leads to improved sales, as the sales candidate has a better idea of how the product or service can help the prospective buyer and better matches the product or service to their needs.
Develop Sales Expertise
Centralized training allows you to develop uniform sales expertise throughout your entire sales team. The advantage of developing sales expertise is that it can build credibility and trust with your consumer because of a stronger product knowledge base. This also leads to winning bigger clients, retaining existing clients, and growing company revenue.
Increases Employability Within The Company
Sales training improves one’s skillset. The more a sales candidate can enhance their skills, allows for “climbing the corporate ladder”. Increasing skills increases the chance the candidate could be promoted within the organization. Opportunities may lie as a sales manager, account manager, or sales director.
Disadvantages Of Centralized Sales Training
Requires More Organizational Effort
Centralized sales training requires more organizational effort than decentralized sales training programs. This is because you need to coordinate a large number of trainees at once, ensure the training is suitable for their needs, and ensure the training facilities can accommodate the sales team.
Sales Trainees Are Removed From The Field Leading To Losses In Sales
Removing sales trainees and sales teams from the field would incur significant losses in sales revenue even if the training is over a few days to a week. The less time a sales rep can be out in the field also means the trainee is unproductive during this period and may overall reduce the amount of income they can generate for the company.
Employee Demotivation
Centralized sales training can lead to demotivation. This can manifest itself in different manners. First, being away from one’s family can cause strain but it also leads to lower productivity and motivation because they are out of the field and not able to maintain relationships with their clients.
Intensive Training Lacks Long-Term Effect
Intensive training lacks a long-term effect because it needs to be followed up or maintained with decentralized sales training programs. These two types of training programs work together.
Example Of Centralized Training Examples
An example of centralized training is when a large national or international company flies the sales candidates to one central location and provides the necessary sales training they require. All training is standardized and everyone receives training according to the product or service they sell.
What Is Decentralized Sales Training
Almost all organizations use some form of decentralized training. The training is done at their offices or infield. Usually, this take place in the final stages of the learning program. A small number of trainees are usually involved and training is done over a brief, intense period that is spread out over a specific period.
The Sales Trainers can be any one of the following:
- First-line sales managers
- District sales managers
- Senior sales manager
- Visiting sales training specialists
The sales manager/ trainer/ senior salesperson may also shadow trainees. The shadowing is done to ensure the following:
- How well they have mastered the theory
- Further training required
- Nature of additional training that is required
Video conferencing has helped with decentralized sales training. This form of training helps bridge the gap between centralized and decentralized training as in both cases the sales candidate can benefit from both. All advantages and no disadvantages.
Advantages Of Decentralized Sales Training
Decentralized Training Requires Less Organizational Effort
Decentralized training requires less organizational effort because there isn’t a need to arrange certain sales reps to travel, to arrive on a certain day, provide accommodation, ensure the sales team can still function effectively without them. All these moving parts require plenty of organizational effort. With decentralized training, the training is done directly at their location.
Sales Trainees Remain In The Field
Sales trainees and members who are undertaking more advanced forms of training remain in the field. They are better able to apply what they learn in the field. The skills they acquire help them become more productive and thus help generate higher revenue for the company.
Save On The High Costs Associated With Centralized Training
Centralized sales training is associated with high costs. This is because it requires all members to meet at a central location. The firm must cover food, accommodation, and travel expenses. If there is overtime, that would need to be covered as well. Decentralized sales training is significantly cheaper, as it requires all members to stay in their current location and go to work in the usual fashion.
Training Can Occur Over A Longer Period Making It More Effective
Centralized training is a specific curriculum over a defined period. Decentralized training occurs over a longer period, allowing for further practice and skillset improvements as time goes by. During this time, improvements and refinement to one’s skills could be made as the instructors and trainees continue to check in.
Direct Evaluation By Managers And Shortcomings Identified And Rectified
A major benefit of decentralized training is the direct evaluation of the sales trainee by the manager. As this is the case, all shortcomings of the trainee are identified and can be quickly rectified to ensure the continued ongoing success of the sales representative.
Stimulates A Competitive Spirit Amongst Candidates
Decentralized training of sales reps leads to an enhanced competitive spirit amongst other sales candidates. The competitive spirit can be a drive force between sales reps at different branches and working in different territories.
Disadvantages Of Decentralized Sales Training
Sales managers may lack the necessary skills to effectively train
The sales manager providing the training may not be equipped or skilled sufficiently to provide the correct levels of training that the candidates require in order for the training to be successful. This would require having a dedicated specialist being brought in to correctly train the staff members.
Training could be disrupted by infield work/sales activities
Another common disadvantage is that training could be disrupted by infield work and other sales activities that may get in the way. For example, when a client’s order hasn’t arrived on time or they forgot to order a certain product, the representative has to deal with the issue, which interferes with the training.
Minor family problems may impact the training
Minor family issues may impact the training. For example, a family member is in an accident or falls ill and they need to get to the hospital. This disruption delays the training.
Occasionally combined with other forms of formal training
Decentralized sales training should be combined with other forms of formal training to ensure the benefits are all met. You may opt for an initial centralized training program and then move to decentralized training to further improve the sales candidates’ skillset.
Coordinating time around training schedules
Coordinating training around everyone’s schedule is difficult. The sales candidates, their managers, and training facilities need to be coordinated at the same time for the training to be successful.
Training isn’t uniform in each decentralized location
One of the largest disadvantages of decentralized training is that it isn’t uniform throughout the organization. The training one candidate gets on one side of the country may be significantly different from another part of the country. This difference may be due to different educators providing the training.
Example Of Decentralized Training Examples
An example of decentralized sales training is when a sales manager at a local HVAC company provides dedicated sales training to the new sales candidates being onboarded. This sales manager helps the candidates better understand how to sell the products, their clients, and the territories they are working in. All training is local and “hands-on.”
Conclusion
Centralized and decentralized sales training go hand in hand. It is worth noting that because they work well together at different stages in the sales candidate training, one isn’t better than the other. Centralized training works well, and so does decentralized. The financial strength of a company, its size, and the size of the sales teams are clear factors in choosing which is best for each situation.
When evaluating a sales training company, it’s critical to find a partner that understands the science of high-performance hiring and AI-driven selling. Discover how we bridge that gap by setting up a call with us.