Building a Successful Sales Team in the Construction Industry

Building a strong sales team is essential for any company in the construction industry, as it is a highly competitive field. While having quality products and services is important, having a sales staff that can effectively sell those offerings is what will ultimately drive revenue and success. In this article, we provide recommendations for leaders to consider when assembling a successful sales team in the construction industry.

Determine the type of salespeople you need

The first step in creating a sales team is identifying the type of sales professionals you require. This will largely depend on your business model, growth trajectory, target market, and products or services. Some common types of salespeople in the construction industry include inbound sales reps, outbound sales reps, sales development reps (SDRs), business development reps (BDRs), and account executives (AEs). Carefully considering the role and responsibilities of each type of salesperson will help you choose the best candidates for the job.

Set the right commission structure

Retaining talented salespeople in the competitive construction industry can be challenging, which is why creating a compensation plan that motivates them to stay with your company is crucial. A typical sales compensation plan includes a base pay, commission, and additional financial incentives to encourage sales reps to reach or exceed their quota. It is also essential to set clear pay scales for managers and higher-level sales representatives to reward outstanding performance. Consider different commission structures such as base rate only, base salary plus commission, gross margin commission, or straight commission to determine the best fit for your sales team.

Have a clear sales process

To maximize sales performance and expand your sales staff, it is essential to have a clear and repeatable sales process. This process should include prospecting, preparation, approach, presentation, handling objections, closing, and following up. Make sure to document your sales process, including where to identify prospects, how to get in touch with them, and how to follow up. This will help you avoid wasting time and resources, and allow your entire team to follow the same successful method.

Design a good onboarding process

A good onboarding process is key to integrating new sales representatives into your business and setting them up for success. In addition to standard onboarding practices such as reading the employee handbook and attending orientation sessions, consider providing hands-on training and a support system from experienced employees. Have a standardized sales process guideline and set clear expectations to make the onboarding process more effective.

Measure the right sales KPIs

To assess the success of your sales team, it is important to know which sales key performance indicators (KPIs) and metrics you should be measuring. Some common sales KPIs in the construction industry include sales cycle length, average contract value, number of calls/meetings set each month, and leads to sales conversion rate. Tracking these KPIs will help you identify areas for improvement and optimize your sales team's performance.

In summary, building a successful sales team in the construction industry requires careful consideration of the type of salespeople you need, the right commission structure, a clear sales process, a good onboarding process, and the right sales KPIs. By following these recommendations, you can assemble a top-performing sales team that will drive revenue and growth for your business.

Additional Read: 7 Common Reasons Building Material Sales Teams Fall Short of Goals

Get Started Today Building Your Sales Team with BuildMapper