Ronda Anderson -How to build a powerful sales team?
Transcript of the interview of Ronda Anderson
David Laroche: Hello, Achievers! Today, I am with Rhonda Anderson. She helps businesses build high-performance sales teams. She's with me to answer my questions, and you will love it.
Ronda Anderson: Hi!
David Laroche: How are you today?
Ronda Anderson: I'm outstanding. Thank you for having me.
David Laroche: Thank you very much also. I would love to know what you do to help a business build a powerful sales team. Do you have tips and some advice we can apply as an individual?
Ronda Anderson: For an individual or for an individual business?
David Laroche: Individual business.
Ronda Anderson: When I go into an organization, I do a couple of different things. I go into existing organizations and turn around struggling sales teams, and I build teams from scratch.
The most important thing is very, very clear alignment about what the company’s goal is and what the company chooses as its measures of profitability.
For example, is it the number of customers that you need to bring on? Is it the amount of revenue per customer?
It's not that those are mutually exclusive, but what it is that is a win at the end of the day because once we have a clear target, then, it's really easy to build a sales force that lines up behind it.
So I would say that one of the most important things is that the business be really clear about what it wants.
David Laroche: And do you have to be clear about the sales goals or the results of the company? What do you mean by goals?
Ronda Anderson: It's helpful if the company is clear about who it is, who its market is, and what its mission, goals, and paths are. Those things are helpful.
But younger and early-stage companies are frequently in stages of flux. Their identities are developing; and exactly who they are in the marketplace is, sometimes, not completely clear. That's okay as long as you're continuing to work toward clarity.
But when it comes to building a high-performance sales team, what must be crystal clear is what constitutes the win.
For example, I've worked with an early-stage company that is unclear about what it considers the highest use of the sales team. They can't decide as to the amount of dollars each client spends: “So do we want a sales team that's going out and getting a bunch of clients spending a thousand dollars or do we want a sales team that's going out getting a handful of clients who are spending five thousand dollars?”
They are two totally different targets, right?
And so, if you want to build a high-performance sales team, you have to be clear about the target; and it can be both. You can say, “What we want is the highest customer account possible spending the highest dollar amount possible.”
But you have to rank the priority because you tell the sales reps what targets to focus on and when you build a comp plan to support the behaviors that have us moving toward those targets, the target has to be clear and it has to be specific.
David Laroche: Can we apply that for a small business, for example, like me, an entrepreneur who sells his own product?
Ronda Anderson: Yes, absolutely! In fact, it's a lot easier for an entrepreneur and the reason is because there is always an infinite range of choices. I think this is what trips up most companies and it's what trips up most entrepreneurs.
It's like, “There's the feeling that I have to choose this or this.” And for the moment, you do; but not forever, right?
So you could say, “For the first year and a half, the first eighteen months of my business, the number of clients, the number of customers, the number of people following me is the most important target.” And then, that's what you go after.
And then, when you hit that eighteen-month point, you could decide that the most important thing is “the amount of money those people are spending with me.”
Then, the next most important thing is, “Now, I want to bring on fewer people who are spending more money at a time.”
You have to select a goal; and, for the moment, the other possibilities collapse while you're singularly focused on that one, or they take second or third place. But, over time, that ranking can change.
For an entrepreneur, it's much easier because you're the person who gets to make that decision and not a committee of people all with different ideas about what the best direction is.