Ongoing learning is key to success in any field. Sales is certainly no exception.
When sellers have continuous training and learning opportunities, they’re better equipped to deliver engaging experiences that attract, win, and retain customers. In fact, research tells us companies that invest in training are significantly more effective than their competitors.
Revenue organizations often invest in formal learning and training programs and tools. But informal learning (when done well) also drives sales productivity and performance.
Which is the better option in a battle of formal vs informal learning? The truth is, both are important pieces of the puzzle.
In this post, we’ll explore what formal and informal learning are, how they’re similar, how they’re different, and why you need both to drive sales performance and revenue growth.
What is formal learning?
First things first: what is formal learning?
Formal training is what many people think of when they hear the phrase “sales training.” It typically takes the form of structured curricula delivered to a specific audience on a set schedule. For example, each new sales rep undergoes sales onboarding, which is a structured set of courses and tasks that are assigned and completed at specific points in time.
Formal enterprise learning can include a variety of components, like:
- Live lectures (either in-person or remote)
- Training videos
- Assigned reading
- Other assignments and tasks
- Quizzes and other types of assessments
- Certifications
Sometimes, formal learning takes place in a classroom setting, where all attendees are in the same physical location. But increasingly, formal learning takes place remotely, often via videoconferencing and other digital tools.
Typically, formal learning is developed and delivered by trainers, instructional designers, or sales enablement professionals. These folks may use a sales training tool to develop and deliver programs and measure their impact.
Why is formal learning important?
Organizations are largely in control of the formal learning experience. As such, formal learning can be a great method for delivering structured information to a group of people.
For example, if you’re launching a new product, your entire sales team needs to learn its features. Formal learning, including live training and assessments, helps ensure all sellers gain the right product knowledge to accurately articulate the solution’s value to buyers.
Formal training is also important for organizations in heavily regulated industries. For example, sellers in certain industries—such as pharmaceuticals—may need formal training to comply with rules and regulations.
What is informal learning?
Now that we know formal learning, you may ask yourself, “What is informal learning?”
Informal learning is a more flexible approach to sales training and learning. Informal learning is unstructured and typically takes place outside of the classroom.
Informal learning can take many forms, including:
- Microlearning
- Reinforcement
- Practice opportunities like role-plays
- Knowledge base
- Coaching
- Peer-to-peer sharing
Informal learning is typically employee-led. Employees seek out just-in-time information and learning opportunities whenever a need arises. They can get answers and information from various sources, including managers, subject matter experts, and peers.
Typically, informal learning requires less of a time commitment than formal learning. Rather than attending training at a specific time, employees can consume informal learning whenever and wherever their schedule allows.
Why is informal learning important?
Formal training has an important role. But according to Gartner research, B2B sellers forget 70% of the information they learn within a week of sales training.
Gartner found that B2B sellers forget
Informal learning helps reinforce concepts and skills taught during formal training. That way, knowledge sticks and sellers are more likely to apply it in the field.
In addition, informal learning is hyper-relevant to the needs of each individual. Rather than requiring a large group to sit in on a live training, informal training provides learning opportunities targeted to each individual’s needs. And individuals can access these opportunities anywhere, at any time.
As a sales leader, you understand that learning isn’t a one-time event but should be continuous. Informal learning helps foster a culture of ongoing learning within the organization.
Formal learning vs. informal learning: what’s the difference?
Now that we’ve shared definitions for formal and informal learning, one thing is clear: they are not the same.
Let’s look at some key differences between formal and informal learning.
| Formal learning | Informal learning | |
|---|---|---|
| Definition | A structured approach to learning that involves delivering a set curriculum to a specific audience at a specific time. | A flexible approach to learning that enables employees to access just-in-time learning and opportunities to grow their skills and knowledge. |
| Structure | Rigid | Flexible |
| Setting | Classroom, video conferences | Virtual and on-demand |
| Who creates content? | Instructional designers, enablement teams, HR | Anyone with expertise in a specific area |
| Directed by | Instructional designers, trainers, enablement professionals | Self-directed by employee |
| Timing | Typically, a larger, broader audience | Typically, a smaller more targeted audience |
| Time commitment | Large. Formal learning typically takes up a significant amount of time. | Short. Informal learning like micro-learning can be completed quickly. |
| Examples of different components | Lectures, required reading, assignments, tasks, assessments, and certifications | Microlearning, reinforcement , role-plays, knowledge base, manager coaching, peer-to-peer coaching |
What are some examples of formal and informal learning?
One of the best ways to understand the difference between formal learning vs. informal learning is to see some examples of each. So with that in mind, let’s take a look at some formal and informal training examples.
4 formal training examples
Some formal training examples include:
#1 Sales onboarding
Let’s say you have a group of 15 new sales reps who are scheduled to start next month. These sellers will all go through a formal sales onboarding program, which will kick off with three days of live classroom training sessions. Then, each seller will be assigned certain courses and tasks to complete over the next 90 days.
#2 Product training
Another formal training example is product training. This type of formal training may be developed and delivered when a business is launching a new product offering or making significant changes to an existing one. Product training might include on-demand and live courses, as well as assessments to ensure understanding.
#3 Sales kickoffs
Sales kickoffs often include at least some formal sales training. A sales kickoff is often the one time of year the entire team is in the same place at the same time, so it’s a good opportunity to deliver formal training on topics including (but not limited to) product offerings, sales processes, and new technology.
#4 Training on new technology
Let’s say you’re investing in a new piece of software—such as a revenue enablement platform—that will be used by the entire go-to-market team. You may want to develop and deliver formal training so your entire team understands why you’re adding this technology and how they can use it to do their jobs well.
4 informal training examples
Some informal training examples include:
#1 Microlearning
Organizations can develop bite-sized learning to convey new information or reinforce concepts covered during formal training. For example, a formal training may focus on different closing methods. Then, the organization might develop short, bite-sized videos of top sales reps using these different closing techniques.
#2 Knowledge base
A knowledge base is an informal training resource that allows sellers to find the knowledge and information they need when they need it. A sales content management system can serve as a knowledge base, providing sellers with a one-stop shop for sales content.
Sellers can search the knowledge base to find the information that they need without having to wait on a subject matter expert. Sometimes, a knowledge base incorporates an artificial intelligence sales assistant, which allows users to pose questions and get answers based on the information and content housed within the knowledge base.
#3 Coaching
Coaching is informal learning that can help sellers hone their skills for success. Coaching can be manager-led. In other words, a sales manager delivers coaching based on a rep’s performance. Or, organizations can deliver AI-powered coaching. For example, conversation intelligence software can analyze sales calls and deliver feedback. Or, sellers can engage in AI-driven role-plays and get real time feedback for improvement.
#4 Peer-to-peer feedback
Peer-to-peer feedback is a type of informal training that enables your top sellers to help each other learn and grow. For example, a sales rep can post a role-play or practice pitch recording, and peers can share their feedback.
Formal vs. informal learning: Which is better for your organization?
For example, imagine your organization is rolling out a new product offering. Your teams work together to develop a formal training program that’ll be delivered at your next sales kickoff. At the end of the sales kickoff, attendees will take an assessment to test their knowledge. These are examples of formal learning.
Once attendees have left the sales kickoff, they can tap into informal learning to strengthen their knowledge. For one, they can use an internal knowledge base to find information and resources about the new product offering. They can also watch short videos where subject matter experts go into depth on some of the key features and benefits of the product. Finally, they can practice pitching the new product via AI role-plays and get real-time feedback on improving their pitch. These are all examples of informal learning that can be done whenever and wherever sellers have the time.
Take your formal and informal training to the next level with Mindtickle
Formal vs informal training: which is the best? The truth is, both formal and informal training are key to ensuring your sellers have the knowledge and skills needed to build relationships with buyers and close more deals.
But generic, one-size-fits-all sales training topics won’t cut it. Instead, you need to deliver formal and informal training that addresses the needs of each seller.
That might seem impossible – especially if you have a large sales team. But with Mindtickle, you can identify the strengths and weaknesses of each seller – and deliver personalized training tailored to their needs.
With Mindtickle, you can build and deliver formal training programs like onboarding and product training. You can also deliver informal training opportunities like microlearning, reinforcement, coaching, and practice opportunities that help sellers hone their skills for success.
Now that we’ve discussed the differences between formal and informal learning and shared examples of each, you may wonder which option is better.
The truth is, it depends on your organization’s needs and the types of information and knowledge you plan to deliver to your sellers. Often, the best approach is to use a blend of formal and informal learning.
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By Rahul Mathew
