Sears designed a training program to improve took and hardware sales. The two-hour program involved distance learning and was broadcast from the Sears training facility to fifty salesperson at ten store locations in the United States. The salespersons are paid $15 per hour. The program involved training salespeople in how to set up merchandise displays so they attract buyers' attention. Sales of tools and merchandise at the ten store included in the program averaged $5,000 per week before the program and $6,500 per week after the program. Program costs included:
Instructor $10,000
Distance Learning (satellite space rental) 5,000
Materials ($100 per trainee @ 50 trainees) 5,000
Trainees' salaries and benfits
(50 trainees with wages of $15 per hour in a 2- hour training program 1,500
1. What is the ROI for this program?
2. Explain you strategy for determining the ROI.