Cost cutting is worth it if you’re cutting the fat, but not if you’re cutting muscle. In order to protect the bottom line, companies often make cuts in the wrong places.
There are now ample studies that show a direct correlation between training and sales: When training gets cut, sales (and thus income and profits) decrease – period. Conversely: Even as little as an hour a month of training increases revenues by six percent or more!
The other big mistake many companies make is that they don’t track by sales staff, or even attribute sales success directly to their staff. They somehow think sales will continue to happen (and somehow grow) when staff are either cut back, unmotivated, or training is cut back (or skipped altogether). But then, an even bigger mistake is thinking that sales is just sales staff…
No business would ever dream of cutting back on product innovation or marketing, but can’t understand why sales don’t grow automatically. As online sales continues to eat away at brick and mortar retailers, training becomes more important, and pretty much the only thing that’ll separate a business from their online competitors.
It’s either invest in staff, or simply cut prices to become the ‘cheapest.’ The former is proven over and over again to work, increase sales, reduce turnover, and create stronger client relationships and repeat business. The latter is a recipe for a never-ending downward spiral that’s bound to end in failure.