The Ringy Blog

How to Build a Sales Team: 7 Critical Steps For Success

Written by Ringy | Oct 16, 2024 1:00:00 PM

They say that a company's revenue engine is only as strong as its sales team. No matter how brilliant your product or service is, without the right team behind it, hitting those ambitious sales targets can feel like an uphill battle.

That's why building a sales team is not just about hiring the most experienced salespeople—it's about creating a cohesive unit with the right strategy, culture, and goals to fuel business growth.

In fact, companies with top-tier sales teams tend to grow revenue 24% faster than their competitors.

In this guide, we'll walk you through how to build a sales team from the ground up, offering actionable insights and practical steps to ensure your salesforce is ready to conquer the market.

Let's get started—your business depends on it!

1. Building a Sales Team: Defining Your Sales Strategy and Goals

Before you even think about recruiting sales talent, it's essential to lay the groundwork by defining a solid sales strategy. This step ensures that every move you make is grounded in a clear, strategic direction.

A strong foundation of goals and objectives not only helps guide your team's efforts but also maximizes their chances of success. It's like building a house—you wouldn't start without a blueprint, right?

Understanding Your Market and Customer Base

One of the most crucial parts of building a successful sales team is understanding exactly who you're selling to. This begins with conducting thorough market research to pinpoint your target customers and the market segments your product or service will best serve.

Start by analyzing trends, competitors, and potential gaps in the market. Look at the demographics, behaviors, and pain points of the customers you want to reach. The goal is to uncover where your product fits in and how it can solve real problems for your target audience.

Once you've gathered that data, the next step is to define your ideal customer profile (ICP)—the representation of your perfect customer. An ICP goes beyond basic demographics; it's a detailed description of the types of companies or individuals that are the best fit for your product.

For example, if you're selling B2B software, your ICP might be small-to-medium-sized businesses in the tech industry with revenue between $5 million and $50 million.

From here, you can dive deeper and build buyer personas, which are semi-fictional profiles representing your key customer types. Buyer personas focus on the individual—who they are, what they care about, what drives their purchasing decisions, and how your solution fits into their lives. Creating these personas ensures your team knows who they're selling to, helping them tailor pitches and outreach efforts more effectively.

Setting Clear Sales Objectives

Now that you understand your market and customer base, the next critical step is to define your sales objectives. The best way to do this? SMART goals—specific, measurable, achievable, relevant, and time-bound. These goals are designed to keep your team focused and motivated while offering a clear benchmark for success.

Here's how it breaks down:

  • Specific: The more detailed, the better. Instead of saying "increase sales," a specific goal would be to "close 15% more deals in the healthcare sector within Q4."
  • Measurable: You need to track progress. This could be measured in revenue, the number of new clients, or even customer satisfaction ratings.
  • Achievable: Goals should stretch your team but remain realistic. Setting unattainable targets can demotivate even the best sales professionals.
  • Relevant: Sales goals should align with broader business objectives. If your company is pushing to grow its presence in a new market, your sales objectives should reflect that.
  • Time-bound: Every goal needs a deadline. This gives your team urgency and accountability.

For instance, instead of a vague goal like "increase revenue," try something like, "achieve $500,000 in new sales from enterprise clients in the software industry by the end of Q3." It's actionable, clear, and aligned with broader business ambitions.

Additionally, make sure that your sales goals are in sync with the overall business strategy. If the company aims to break into new markets, your team's objectives might focus on acquiring leads from those markets. If the goal is to boost profitability, then perhaps the team will focus on upselling and cross-selling to existing customers. The key here is alignment—your sales team's work should directly support the company's larger vision.

2. Identifying the Key Roles in Your Sales Team

To set your salesforce up for success, you need the right players in the right positions. Each sales role serves a unique function within the broader sales strategy, so it's crucial to carefully define the responsibilities of each position and understand how they work together to drive revenue.

Here's what you'll need to consider when building a sales team.

Understanding Different Sales Roles

Depending on your company's size, industry, and goals, you may need different combinations of these roles.

  1. Sales Development Representative (SDR): SDRs are often the first point of contact with potential clients. Their primary job is prospecting—identifying leads, qualifying them, and passing them on to more senior sales reps. They focus heavily on outreach, cold calls, and emails to build relationships with prospects.
  2. Account Executive (AE): Once the SDR has warmed up a lead, the Account Executive steps in to close the deal. AEs are responsible for running sales presentations, negotiating contracts, and converting prospects into paying customers. They have deep product knowledge and excel at relationship building.
  3. Sales Manager: The Sales Manager oversees the performance of the team. They set sales goals, develop strategies, and coach reps to ensure the team meets its targets. They're not only leaders but also strategists, keeping a close eye on market trends, team performance, and customer needs.
  4. Customer Success Manager (CSM): Once a sale is made, the CSM ensures that the customer remains satisfied. They help onboard clients, solve problems, and ensure customers are getting value from the product. CSMs play a crucial role in upselling, cross-selling, and maintaining long-term client relationships.
  5. Sales Engineer: For more complex, technical products, a Sales Engineer works alongside Account Executives to explain technical details to prospects. They're crucial in industries like SaaS or hardware, where clients need to understand the product's specifications before purchasing.

The combination of these roles will depend largely on your sales strategy. For instance, if you're focused on rapid expansion, you might prioritize hiring more SDRs to ramp up lead generation. On the other hand, if customer retention is key, investing in CSMs will be more beneficial.

Structuring Your Sales Team

Once you've identified the necessary roles, the next step in how to build a sales team is choosing the best structure for how your team will operate.

Here's an overview of the most common sales team structures:

Sales Team Structure

Description

Advantages

Disadvantages

Hunter vs. Farmer

Divides the team into two groups: Hunters focus on acquiring new customers, while Farmers focus on nurturing existing accounts.

Specialization allows team members to master specific tasks, leading to higher efficiency.

This can create a silo mentality, limiting team collaboration.

Pod Structure

A cross-functional team where SDRs, AEs, CSMs, and Sales Engineers work together on the same accounts.

Solidifies collaboration and communication within the team, improving customer experience.

It can be challenging to scale, as team roles may overlap or become redundant.

Assembly Line Model

Breaks the sales process into stages, with each stage handled by a specialist (e.g., SDR for lead gen, AE for closing).

Maximizes efficiency by allowing reps to focus on a single stage of the sales process.

Risks disjointed customer experiences and loss of continuity between stages.

3. Recruiting and Hiring the Right Talent

Building a successful sales team depends on the following criteria.

Developing a Sales Talent Profile

The first step in building a sales team is defining what you need in a salesperson. Here's what's best to consider.

  • Skills: What specific skills are essential for your sales team, such as cold calling, objection handling, and relationship building?
  • Experience: If you're hiring for an SDR role, a candidate with a year of sales or customer service experience may be sufficient. However, for senior positions like an Account Executive or Sales Manager, you'll want someone with a proven track record of meeting sales quotas and handling complex deals.
  • Traits: Look for candidates who show a natural enthusiasm for the challenge of sales and who demonstrate persistence in their previous roles.

Once you've clearly identified the ideal sales candidate, the next step is creating job descriptions that are both detailed and enticing. A well-crafted job description will set expectations upfront and attract candidates who genuinely fit the role.

  • Example: A job description for an SDR might include specific responsibilities like "Prospect, qualify, and generate new leads through cold calls and emails" and required skills such as "Strong communication skills and proficiency in CRM tools like Salesforce."

Effective Recruitment Strategies

Knowing how to build a sales team requires understanding how to effectively recruit the right talent. Here's how to get started.

  • Job Boards: Post your open sales positions on high-traffic job boards like Indeed or Glassdoor.
  • Social Media: LinkedIn is an especially powerful tool for sales recruitment, as it allows you to directly reach out to potential candidates and see their professional backgrounds.
  • Industry Networks and Events: Attending industry conferences, trade shows, and local meetups can help you identify and connect with talented sales professionals.

The next step is to conduct thorough interviews to assess a potential fit within your sales team development plan. Beyond standard interview questions, consider using role-specific assessments to evaluate a candidate's sales understanding and problem-solving abilities.

Onboarding and Training New Sales Reps

Finding great talent is only half the battle; ensuring that new hires are quickly integrated into your sales process is key to building a successful sales team. Here's what that should look like:

Aspect

Description

Onboarding

  • Create a comprehensive onboarding plan that introduces new hires to your company's products, values, and sales processes.
  • Include an overview of the sales strategy, key targets, and team structure.
  • Equip them with hands-on training with CRM or marketing tools, detailed product knowledge, or shadowing experienced reps during client meetings.

Ongoing Training

  • Conduct regular workshops, role-playing exercises, and one-on-one coaching sessions to refine your sales team's skills.
  • Encourage peer-to-peer learning, where more experienced reps can share their knowledge with newer team members.
  • Invest in sales enablement tools and resources to help your team stay up-to-date on the latest sales techniques and industry trends.

Studies show that companies that invest in formalized training programs see a 200% increase in revenue!

4. Building a Positive Sales Culture

A positive sales culture is essential for building a high-performing sales team. By fostering a collaborative and motivating environment, you can encourage your team members to reach their full potential.

Fostering a Collaborative and Motivating Environment

A well-oiled, cooperative team will outperform one where individuals operate in silos. So, do this:

  1. Encouraging Teamwork and Open Communication: Encourage your sales reps to share leads, strategies, and success stories. Open lines of communication create a culture of trust and transparency, allowing team members to seek advice when they encounter challenges and celebrate wins as a group.
  2. Recognizing and Rewarding Achievements: Publicly recognizing individual achievements—whether it's hitting a sales quota, closing a difficult deal, or simply demonstrating exceptional teamwork—helps motivate your team to continue pushing forward.

Promoting Continuous Learning and Improvement

No matter how experienced your sales team is, there's always room for growth. One of the cornerstones of building a successful sales team is promoting continuous learning and development. Here's how.

  • Implement Regular Training Sessions, Workshops, and Coaching: As discussed earlier, ongoing training programs allow your team to refine their skills, learn new strategies, and stay updated on industry changes. You could organize monthly workshops focused on different aspects of sales, such as improving negotiation tactics, refining objection-handling skills, or mastering customer relationship management.
  • Encouraging Sales Reps to Share Best Practices: Encourage reps to share best practices with their peers, whether it's through formal presentations or informal conversations. This helps the entire team benefit from individual insights, making everyone stronger in the process.

Research shows that companies with a strong learning culture are 92% more likely to innovate and respond to market shifts. By prioritizing continuous education, you're not just developing a sales team. You're equipping them to adapt and thrive in a constantly changing business environment.

5. Equipping Your Sales Team with the Right Tools and Technology

From CRM systems to sales software, these technologies streamline processes, provide valuable insights, and allow your sales team to focus on what they do best—selling. Now, let's see how you can select the right tools for the job.

Selecting the Best CRM Software

A CRM is more than just a digital address book; it serves as the nerve center for managing customer interactions, tracking leads, and analyzing sales performance.

When building a sales team, you must consider several factors when evaluating CRM options:

  1. Ease of Use: How intuitive is the CRM for your team to navigate? A CRM that's too complex can hinder productivity rather than enhance it.
  2. Automation Capabilities: Can the CRM automate routine tasks such as sending follow-up emails, setting reminders, or updating contact records?
  3. Customizability: Does the CRM allow for customization based on your unique sales process? Flexibility is key to meeting specific business needs.
  4. Integration: Does the CRM integrate smoothly with your existing software and tools, such as email, marketing platforms, or communication tools?
  5. Scalability: Will the CRM grow with your team as your business expands, allowing you to add new features and users as needed?

One excellent CRM option that ticks all these boxes is Ringy (yes, it's us). Our CRM can operate efficiently and effectively!

Not only does Ringy offer a robust set of features—like contact management, pipeline tracking, and automated messaging—but it also comes at an affordable, fixed price of just $109 per month for unlimited users. This makes it an ideal choice for growing businesses that want to provide their sales team with top-tier technology without breaking the bank.

With the right CRM, the next step is ensuring your team knows how to use it effectively. Implement comprehensive training sessions to walk your sales reps through how to track leads, monitor deals, and measure their performance.

Utilizing Sales Enablement Tools

Sales enablement tools can help your sales team become more effective and efficient. Some examples include:

  • Content Management Systems: Store and organize sales content, such as presentations, case studies, and product information.
  • Communication Tools: Facilitate communication between sales reps, customers, and other team members.
  • Sales Analytics: Provide insights into sales performance, team productivity, and customer behavior.

To ensure seamless operations, it's essential to integrate these sales tools with your existing technology stack. When CRM, content management systems, and analytics platforms work together, your sales reps can focus less on managing disparate systems and more on selling.

For example, integrating your CRM with your email platform allows reps to automatically sync customer communication, making it easier to track interactions and follow-ups.

6. Establishing Effective Sales Processes

Mastering how to build a sales team means understanding how to create a well-structured sales process.

Here's how to navigate this step.

Developing a Clear Sales Process

Here's an outline of a standard sales process:

  1. Lead Generation: The process starts with identifying potential customers through various channels, such as inbound marketing, referrals, cold outreach, or events.
  2. Prospecting: Not every lead will be a good fit, so it's essential to assess whether a prospect meets your ideal customer profile.
  3. Initial Contact: This stage involves reaching out to the prospect through email, phone, or other communication channels.
  4. Qualification: Your sales reps need to dive deeper into understanding the prospect's needs, pain points, and buying intent.
  5. Presentation/Demo: Whether it's a product demo or a tailored proposal, the goal is to showcase how your offering solves the prospect's specific challenges.
  6. Handling Objections: Your sales team should be equipped with a structured approach to addressing and overcoming objections to keep the conversation moving toward a close.
  7. Closing: Whether it's getting a signed contract, sending over payment terms, or finalizing the details, your team needs to know how to guide the prospect to the finish line.
  8. Post-Sale Follow-Up: Your sales team should follow up to ensure the customer is satisfied, setting the foundation for upselling, cross-selling, and long-term loyalty.

Implementing Performance Metrics and KPIs

Here are some essential KPIs to measure sales success:

  1. Lead Conversion Rate: This KPI tracks how many leads turn into qualified prospects and ultimately paying customers.
  2. Average Deal Size: Measuring the average value of closed deals helps you understand how much revenue each sale contributes.
  3. Sales Cycle Length: The amount of time it takes to move a prospect from initial contact to closing the deal.
  4. Win Rate: This KPI measures the percentage of deals that your team successfully closes compared to the total number of deals they're working on.
  5. Quota Attainment: This tracks the percentage of sales reps who meet or exceed their sales targets.
  6. Customer Acquisition Cost (CAC): CAC measures how much it costs your company to acquire a new customer, including marketing and sales expenses.
  7. Customer Retention Rate: While often more relevant to the customer success team, this metric is vital for sales teams that rely on repeat business or upselling.

Using these metrics, you can analyze the performance of both individual sales reps and the team as a whole.

7. Scaling Your Sales Team for Growth

As your business grows, so too must your sales team. Scaling requires careful planning and execution.

Planning for Future Growth

The decision to scale your sales team should be driven by clear indicators, such as increased demand, a growing customer base, or the need to enter new markets. But how do you know it's the right time to expand?

  1. Identifying the Right Time to Scale: Monitor your team's workload, sales pipeline, and revenue growth to determine when it's time to expand.
  2. Preparing for Scaling Challenges: Consider factors such as market demand, resource availability, and financial capacity.
  3. Maintaining Training Standards: Maintain your company culture as you grow to ensure consistency and alignment. Develop a plan for onboarding and training new team members to maintain quality and productivity.

Hiring Additional Sales Roles

As you scale, it's important to introduce specialized roles that address the unique demands of a growing sales organization.

  1. Introducing Specialized Roles: Consider adding specialized roles like sales operations managers or sales analysts to support your growing team.
  2. Expanding Geographically or Into New Markets: If your business is expanding into new territories or targeting new customer segments, you may need to hire sales representatives with specific knowledge and experience.

Scaling a sales team requires careful planning, clear strategy, and the right people in place to manage growth challenges.

Conclusion

Now you know how to build a sales team and what it requires. By following these seven steps, you can create a high-performing sales organization that drives revenue and contributes to your business's overall success.

One essential component of building a sales team is equipping your reps with the right technology. A powerful CRM is invaluable for streamlining sales processes, tracking leads, and ensuring that your team stays organized and efficient.

That's where Ringy CRM comes in. With its user-friendly interface, built-in AI tools, and an affordable, fixed monthly price of just $109 for unlimited users, our CRM is the perfect solution to help your sales team succeed.

Note: Our platform only works if you're ready to supercharge your sales team's performance.

So, how about it? Try Ringy for free today and see how you can make your sales soar!