How do I prove ROI on a training project that is designed to increase knowledge? Is there a way to put a dollar amount on knowledge or can it only be perceived value?

I am currently working on a project that will improve product knowledge among sales people and I am having a hard time determining how I can determine ROI. Any ideas?

If you would like more detailed info please see my blog at the link in my signature.

The only way you can really do this is to set up an experiment. You need to groups of salespeople with similar performance and knowledge. Then you need to put only group through the training. Test again to see if there has actually been an increase in knowledge and then track performance over a 3 to 9 month period. Remember you need three data points to get a trend. That change in performance should link to ROI.

You also need to look at the data to see if there where any other factors which might have affected one group over another such as new product launches or changes in territories.

Even with this, linking knowledge to ROI is a stretch. You might consider determine what you want them to do with the knowledge and measure that instead.

Clearly the answer is, "what is the value of knowledge?" Knowledge itself has no value. Will it increase sales? Customer Sat?

Once you can determine the impact of the knowledge you can determine if the training is worthwhile.

Thanks for the great advice

The impact we are looking for is an increase in sales, in particular higher profit sales. Our sales team is having a hard time justifying the value of higher priced items over less expensive options.
We beleive this may be due to the fact that they are not doing a good job of justifying value in the higher end items by citing the features and advantages of the product. If the sales staff has a better understanding of what it is about the product that makes it more valuable then they will do a better job of justifying the price to the customer which will ultimately result in more higher profit sales.
With that in mind, maybe it would be best to measure ROI based off of a sales increase and a gross profit margin increase in particular. Thoughts?