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5 Tips to Building a Sales Team in Construction

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Your company may have the best products in the construction industry or provide top-quality service, but without a strong sales staff, you won't be successful in making the money you deserve. We outline 5 recommendations that leaders should take when assembling a sales team to be successful in the building industry.

1. Determine the Type of Salespeople You Need

Identifying the kind of sales experts you require for your team is the first step in creating a sales team. Planning ahead can help you choose the best candidates for the job and increase the likelihood that you'll keep your reps for the long run. Keep in mind that the number of sales professionals you'll need is largely dependent on your business model, growth trajectory, target market, and products or services. Types of salespeople Include:

  • Inbound Sales Reps: An inbound sales representative's normal day includes responding to calls and emails, resolving client issues, setting up appointments, helping current clients, and following up on outbound calls.
  • Outbound Sales Reps: Outbound sales representatives place a lot of calls to market the product or service, develop and keep a clientele, and deal with queries and issues from clients.
  • Sales Development Rep (SDR): Sales Development Representatives must research potential customers, communicate with and educate prospects, and qualify leads before passing them along to the closers on the sales team. This is because they are in charge of qualifying all leads at the beginning of the sales funnel.
  • Business Development Rep (BDR): It is the responsibility of the business development representative to find prospects, make the first contact with new clients, schedule meetings, and fill the sales team's pipelines.
  • Account Executive (AE): Account Executives work as the company's primary point of contact with its current customers, managing day-to-day operations and assuring client satisfaction.

2. Set the Right Commission Structure

Retaining good salespeople is very difficult in the competitive construction industry. It is vital that you create a compensation plan that can motivate the sales team to stay with the company.  A base pay, commission, and additional financial incentives are frequently included in compensation to motivate salespeople to reach or exceed their quota. A sales compensation plan should specify growing pay for managers and higher-level sales representatives in order to reward a sales team's outstanding performance. Here are a few types of commission structures:

  • Base Rate Only: The base rate only plan pays sales representatives an hourly or flat salary.
  • Base Salary plus Commission: The standard salary-to-commission ratio is 60:40 with 60% being the base rate and 40% being commission-driven. The plan best serves as an incentive or motivation for increased sales performance.
  • Gross Margin Commission: The gross margin commission model factors in expenses involved with the products being sold. The more they can upsell a product or service, the more commission they can earn.
  • Straight Commission: Salespeople who work on straight commission only earn money when they complete a sale.

The industry average for sales commission typically falls between 20% and 30% of gross margins. At the low end, sales professionals may earn 5% of a sale.

3. Have a Clear Sales Process

A sales process is a set of actions your sales team takes to move a prospect along the sales funnel; these include prospecting, preparation, approach, presentation, handling objections, closing, and following up.

A sales method that is clear and repeatable is required to expand a sales staff while maintaining top performance. Where to identify prospects, how to get in touch with them, and how to follow up are examples of this. Everything is written out, right down to the follow-up intervals and the script to utilize. Making a sales playbook is helpful to everyone in the organization. The complete procedures for locating, investigating, and contacting leads as well as the proper sales presentation and closing templates should be documented. Without this, time and resources are squandered, and you'll be forced to rely on a select group of reps to meet goals rather than a method that works for everyone.

4. Design a Good Onboarding Process

Employee onboarding, in general, is the process of educating and integrating a new team member into your business. The process of orienting new sales representatives to their roles and responsibilities can involve standard best practices like having them read your employee handbook and attend orientation sessions, but it should also contain engagement and training components. A good onboarding process is important because it increases retention and boosts productivity. A few things to consider to make the onboarding process more smooth include:

  • Having a standardized sales process guideline
  • Setting clear expectations
  • Providing hands-on training
  • Providing a support system from other experienced employees

5. Measure the Right Sales KPIs

It's crucial to know which Sales KPIs and metrics you should be measuring and what to look for when examining the data, whether you're a sales manager seeking to maximise the performance of your team or a company leader searching for KPIs for sales workers. You should utilise the following kinds of sales KPIs to gauge your success:

  • Sales Cycle Length
  • Average Contract Value
  • Number of Calls/Meetings set each month
  • Leads to Sales Conversion Rate

Additional Read: A Guide to Building the Ultimate Sales Process

How to Get Started

The first step is finding the right sales team. Get in touch with BuildMapper to learn about our sales team-building services.

 

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