Increasing sales is the top goal of many companies. This is especially true as businesses attempt to get back on track financially during the pandemic. Throughout the pandemic, a number of companies have taken an enormous financial hit. According to Bloomberg, a “record number” of U.S. mega businesses lost money during COVID-19. Ryan Vlastelica, contributor to Bloomberg, wrote,
“Never before have this many large, public companies trading in the U.S. been unprofitable. Forty-three of the 345 companies with a market valuation above $25 billion have posted cumulative losses over the trailing 12 months worth of reported results, according to an analysis of Bloomberg data as of Oct. 13. At the start of 2020, only 14 companies fit the bill.”1
A few of these organizations include Walt Disney Co., Chevron Corp., Bristol Myers Squibb, Boeing, and Gilead Sciences.
In addition to large businesses, it was noted in October 2020 that 81% of small businesses lost money during the pandemic.2 This figure is based on a survey conducted by Wiss, an accounting and strategic growth advisory firm, and Sapio Research. Twenty-seven percent of survey respondents claimed they’d suffered a dramatic loss of income due to the pandemic. The average revenue loss was 30%.
There is no easy answer to rebuilding financially post-COVID. It is a complex issue, and solutions that seem too simple or too good to be true probably are. Just one way businesses can improve their bottom line is by optimizing the efforts of their sales team(s) by using the right sales tools.
Why Companies Lose Money Despite Selling More Products
Selling more products and services isn’t always the answer for a revenue deficit as increased sales don’t necessarily equal increased revenue. This was true even before the pandemic. However, many companies sold less services and products during the pandemic, and this was the primary reason their bottom line suffered. For these businesses, selling more will increase their bottom line. But this wasn’t the case for every company.
Why is it that some companies can sell more products and services and not make a considerable profit? Because retail costs and marketing expenses can be astronomical and eat into profits. Costs related to transportation and manufacturing further burn up revenue. This means a company may sell more products than it ever has and still experience a bottom line that grows increasingly unstable.
The solution to this dilemma is to move certain sales-related tasks (marketing, for example) in-house. An LMS system can help company leaders accomplish this. The key to maximizing your sales teams’ efforts could be to utilize the right sales tools and not immediately jump to trying to sell more products and services. An LMS system is one of the sales tools your business needs to rebuild financially post-COVID.
Even if you know increasing sales is the primary solution for creating a healthier bottom line, decreasing marketing expenses and retail costs will still help you reach your financial goals.
How an LMS System Decreases Sales-Related Costs for Businesses
The primary function of an LMS system is to train people. By using an LMS system, companies large and small can deploy training across their entire organization. However, training employees isn’t the sole capability of an LMS system.
In addition to providing remote, on-demand sales training (which can result in higher sales), a social learning management system can increase sales by enabling low-cost marketing through an eCommerce engine. eCommerce functionality allows companies across all sectors to connect with customers, share information, create excitement around products, reach target markets, and sell training.
An eCommerce engine increases revenue because it cuts out the middleman (i.e., the retailer), allowing companies to sell products and services directly. TOPYX LMS eCommerce functionality features:
- Marketing tiles for advertising or announcements in the catalog
- License agreement option (accept your terms for sale)
- Coupons - dollar/currency amounts, percentage, single-use, multi-use, expiration dates, selected courses, and more
- Various supported merchant accounts (PayPal, PayPal Pro, and PayFlow, for example)
TOPYX LMS system is perfect for organizations that want to decrease the cost of marketing, sell products without the help of a third party, and easily share products and services with their audience. Additionally, TOPYX can help businesses increase sales by training their sales team(s). Get a free LMS demo of TOPYX to learn more.
An LMS System Can Increase Sales by Providing Sales Training
An LMS system helps company leaders accomplish some sales-related tasks internally, preventing overspending on marketing. Another key way an LMS can drive sales is by providing sales training to employees. Corporate Vision explained,
“The number one reason why high-growth companies invest in sales training is Sales results. Small and large organizations invest in sales training for one single reason: it works. Industry experts from Accenture estimate that sales training delivers a 353% ROI. This means that every dollar your company invests receives a $4.53 return.”3
Clearly, sales training is non-negotiable for a company that wants to rebuild financially during the pandemic. The Impact Plus blog4 reported:
- Before COVID-19, outside sales represented more than 70% of all sales in the U.S. However…
- In late 2020, 75% of B2B customers said they preferred remote sales interactions over face-to-face interactions.
- “63% of sales leaders believe virtual sales meetings are equally effective or more effective than traditional, face-to-face meetings.”
This means the sales training you deliver using an LMS system should focus on skills related to virtual sales. This will likely give you the highest training ROI and elicit better sales figures.
Wondering if the cost of an LMS will eat into your profits? It could, but you will likely receive an ROI that far outweighs the cost of the learning management system. Remember, per Corporate Vision, sales training delivers a 353% ROI. So the key is finding the most cost-effective way of delivering sales training.
Training for sales team members can either be delivered internally, through a social learning platform, or it can be outsourced. Be aware that outsourcing training may be a larger expense than handling training in-house with an LMS system.
LMS System Features That Make Sales Training Easy
There are a couple of key LMS system features that make sales training easier during a crisis. They include mobile learning and learning paths.
Mobile learning allows new hires to participate in sales training anywhere, at any time, using any mobile device. It offers greater accessibility for all users, giving users the flexibility to learn at their own pace and on their schedule. Since there are no added hardware or connectivity charges (as most employees already own smartphones or tablets), mobile learning can keep costs down. Mobile learning also boosts productivity by giving learners freedom outside of office hours, empowering them to increase productivity in other areas of their work.
Learning paths are helpful for both general onboarding and providing role-based training, such as training for a specific role within sales. With TOPYX LMS system’s online learning path functionality, administrators can create a sequential order of delivery for courses and materials. The course/material sequence can also be allocated to select users or user groups. You can set eligibility requirements for more advanced courses.
With learning paths, more advanced courses become available only after users finish previous courses or materials, and users can only access content assigned to their online learning path. Learning paths can be accessed on any mobile device, which increases the chances that remote sales team members will participate in training.
Offer Sales Training and Minimize Sales-Related Costs with TOPYX LMS
If you are ready to cut down on marketing expenses and increase sales through in-house, ongoing sales training, TOPYX LMS is for you. In addition to mobile learning, learning paths, and e-Commerce, TOPYX LMS system features:
- LMS reporting
- LMS integrations
- Content management tools
- Social learning tools
- Unlimited groups
Also, TOPYX is easy to integrate with the technology you already use, such as Salesforce, Zoom, Webex, and more.
Interested in learning more about TOPYX LMS system? Request a free LMS demo today.
- Bloomberg. https://www.bloomberg.com/news/articles/2020-10-14/record-number-of-u-s-corporate-giants-lost-money-in-pandemic.
- NJB Magazine. https://njbmagazine.com/njb-news-now/survey-81-of-us-small-businesses-lost-revenue-due-to-covid-19/.
- Corporate Vision. https://www.corporatevision-news.com/7-reasons-why-sales-training-is-vital-for-success-in-2021/.
- Impact Plus Blog. https://www.impactplus.com/blog/virtual-selling-is-the-future-stats.