How Can I Build My Sales Team For My Established Business?
Are you trying to build or scale a sales team around you right now?
Here’s what is covered:
Key points to help with an underperforming sales team
Making sure your sales team or BDMs are generating the best ROI
The importance of you and your team understanding the product mix
When salary and incentives just aren’t enough anymore
How to scale when things are going well
About this video
For your business to grow you have to introduce people around you that not only believe in the future of the company but also believe they have a place in that future. This episode will look at what you could do right now to maximise your return on investment from hiring new team members.
This video also goes through how to deal with an underperforming sales team. Rupert shares his experience of running a 45 strong telesales team and some of the challenges faced in motivating and incentivising teams of this size. Alex talks about an approach he used to overcome challenges when financial incentives weren’t enough anymore…
Hello everyone! I’m Alex Smith and this is Rupert Honywood from Business Growth Bureau. Welcome back, in the previous video we were talking about if you’re a sole consultant, coach, mentor, we were talking about how do I plug in the right people around me in terms of sale, getting the best from your sales team and so on and so forth.
Now we are actually gonna be moving more into if you’re an established business or you’ve got a team around you already but they’re not quite even performing and the way that you want them to or more importantly than that you want to get much more from them. I suppose a good place to start would be if we’ve got an underperforming team, what could be four or five or three or four so crucial points that you could look at to help improve them initially? (0:37)
Right! If your covered organizations struggle a little bit in that space it’s invariably because there are some things which aren’t working particularly well so it may be partly to do with other things around it, so it may be your product mixes may not be exactly right so it’s making it very difficult for your business development manager supposed to close those pieces of business but it could also be that actually you’ve got your business development resource working on the wrong things and we do actually come across this quite a bit.
For example, if you’ve got a very good business development manager resource and obviously that could be one person, it could be multiple people, they tend to be some of the most expensive people to employ within your organization and also what can happen is that those people tend to move around a lot more from one company to another. So you have much more of an issue with churn and bearing in mind that the average business develop manager might take 3 to 6 months to actually start bringing in a decent amount of business, that’s a very expensive part to get wrong. (1:37)
I suppose a lot of companies just focus on things like incentive plans and pay package but I know from my experience as well that some of companies we’ve worked with in the past, they have the money hasn’t been an issue when we’ve changed and an example would that be we worked with a client and we found out that all of the team working for him, they all had a family in terms of their children and a wife or a husband at home and we found that by giving them back a Friday afternoon by saying if they over achieved on their target by a certain amount and giving them back their Friday afternoon not only the productivity go up, not only did they earn more but we found that everybody, the morale was so much happy because they knew that if they over achieve in their target for example they were going to pick up their daughter up from school, they had to go meet their wife for a drink after work and have bit of an afternoon to themselves on a Friday.
So it’s the little tricks like this although money is important, little tricks like that to actually listen to your team and find out what’s actually important to them as an individual might be a crucial place to start. Is there anything else may be we can cover around if the team is underperforming? What more can we cover around that? (2:40)
Yeah! First of all just pick up slight in your point there. I think it’s a really important point. I think the one thing I would say it previously through another business employs 65 people of which 40-45 were telesales people so you get to know what, how people think and how they tend to work and actually this whole thing about making people feel valued, your own resource is really important. I think fundamentally as an employer you should also do it to show that you care, if you actually show you really care about the people around you they tend to want to stay with you even though they may not be earning top dollar for doing that job but I think to rewind that back more to your question that’s where I like to deviate slightly on that, to wind back more to your question it’s about making sure your business managers are also doing the right thing.
So, for example, really what you want to do is the business managers me for example go out and do a bit of networking or they may get some referrals coming in. They may be very good at closing those deals down but some of that is not terrible scalable. So it’s about putting other things in place to support that business development managers. So, first of all it’s about making sure you’ve got whatever you’re doing is generating really strong lead flows for your business whether it’s using social media, email marketing. (3:52)
Probably a good time to mention we do have a video that also covers that as well so if you are thinking lead generation is something you need help with. We have covered that as well, skip back see previous series great video check it out. (4:04)
Thank you that’s a great point. I’m sort of tying in around that then what you really need to do is actually have business development manager’s support staff and their job largely would be to those leads coming in would do an element of pre-qualification before it gets presented to a business development manager. (4:21)
Let’s move on to in terms of let’s say the team performing well? How do I get them to do better? (4:28)
Continue to scale and do more of the same and also then look at your product mix, price mix to see with a certain tweaks you can make your product proposition to increase the profitability per sale. (4:45)
It’s funny obviously, it probably be a good time to mention actually one of our clients up things about a month ago. They only sold £10,000 product prices and they were saying although it’s working well cashflow can become a little bit of an issue because £10,000 not a massive amount to sign-off but it still sometimes need 2 or 3 people to sign off.
What we spoke about today is actually introducing a £3,000 price point which is a slightly reduced service but it just offers people a quicker decision, it’s something that £3,000 of nominal amount of money but also it means that you have a continuous supply of money coming into the business. 2 or 3 of them a month makes a big big difference to a lot of people.
So if you’re a smaller or larger company this could be quite a good thing so, what Rupert is talking about with price point and stuff like that and different packages is have a look at although you’ve got your products or service could you offer a reduced product slightly lower price point that would help kind of bring a bit of extra money into the business. (5:39)
Yeah! And again that’s really good because you don’t necessarily need to lose out by the fact the other way around it’ll probably always, suddenly get extra business because those people who spend their you know thousand, 2000, 3000 pounds or dollars or whatever it may be. They may well end up by spending £10,000 or £20,000.
Now, going further forwards if you’re more of a high end consultant, so some of the consultants we deal with for example, sell products service of 50,000 pounds or dollars, hundred thousand, quarter million pounds whatever it may be then in real terms you will fund even with large companies and large budgets like PLC’s or corporates will store quite often want to test you out on a much smaller project which is £5 to £10,000 whatever it may be before they go and sign off a much bigger part.
Ultimately, needs a bit to present yourself as a really safe pair of hands and all these type of things, if you get this flow right not only could you increase sales but also the profitability in your business would go up. You’ll retain your really good resource, your business development managers, you then got a very good business development support team backing it up by developing a really strong organization. (6:50)
You kind of tell before although you can do all the pre-qualification in the world doing smaller price points worth maybe £2 or £3,000. You gain people’s commitment a lot earlier on £10,000 as we say it’s quite a lot of money to maybe signing off whereas £3,000 to dip your toes into that’s less than affordable amount of money especially on budgets within larger companies they can usually just kind of write that off about kind of 2 or 3 different signatures for that.
So that could be a really good kind of price point so to take away from that if your doing very well at the moment but you’re looking to maybe grow a little bit further think about your product mix in terms of could you introduce a lower lower end or not lower end sort of but it’s slightly more reduced service or what other ways can we look at? (7:31)
Well, I think we’ve covered it already so a mid, mid-end and high end products range, product mix something I know you feel very passionate about Alex. It’s also about having some really good content out there whether it’s written or video out there as well which will help to also underpin a lot of your lead generation prospect nurturing sales activities. So all these parts together you end up by making organisations much stronger and then underpinning everything you’re doing really to scale for growth. (7:59)
Cool! Thank you so much for watching as you know I’m Alex Smith and this is Rupert Honywood from Business Growth Bureau. We hope you’ve enjoyed this episode so far, carry on watching as I said you can join us on one of our webinars if you’d like to find out a little bit more about how we do this inside our own organisation that’s by the link below or swipe up on the video. Thank you so much, take care of yourself. (8:18)
Thank you. (8:19)