Investment in employees yields higher revenue. Surprised?
Interesting article in the New Yorker that shows a direct correlation between better training/higher number of sales people and retail sales (every $ invested in payroll results in $4-$28 in sales revenue). That this is news worthy is actually the real surprise. Retailers (in America especially) have longed tried to push more and more to their customer (“self service”) and have pushed down the experience level for their sales people to lower costs to mostly their detriment. This is just plain stupid and bad business.
Sales people (when trained and used effectively) can be a point of differentiation, but many companies don’t see it that way. e.g. What is the real difference between Macy’s and Dillard’s? Staples and Office Max? Home Depot and Lowe’s? Most customers will not be able to articulate a compelling difference. Talk to them about how Nordstorm compares with Macys, or how the Apple stores compare with Best Buy and they will talk your ear off. Go figure.
