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Building a Sales
Based Culture
Mark Davis
InStar
Business Mentors
Marketing and Business Development Summit
April 21, 2010
Rocky Mountain Catastrophe
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Founded in 1983 in Denver
Family owned and operated
Full service restoration contractor
Annual revenue range: $2 MM - $3 MM
10% EBITDA
Good operation
Rocky Mountain Catastrophe
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Purchased in 1996: $3.5 MM in revenue
Year 1 revenue: $11.1 MM
Year 2 revenue: $25.4 MM
Year 3 revenue: $35 MM
Co-founded BELFOR USA
Year 4 revenue: $110 MM
Year 5 revenue: $330 MM
How did RM CAT do it?
• #1) We created a sales culture,
transforming a production culture
• #2) We recruited the best talent
• #3) We invested heavily in our brand
• #4) We invested heavily in marketing
• #5) We rewarded sales performance
• #6) We performed good work
We asked the question:
• “How many different ways can we
receive a job?”
1. Fire Departments
2. Property Management Companies
3. Yellow Pages
4. Agents
5. Brokers
THE TOP FIVE SOURCES WERE NOT
INSURANCE ADJUSTERS!!
Ownership Commitment
• We decided to NOT be a restoration
company.
• We decided to become a sales and
marketing company…in the restoration
business!
Sales Culture
• Culture defined:
– The predominating attitudes and behavior
that characterize the functioning of an
organization.
• A sales based culture focuses,
measures, highlights, and rewards sales
performance.
How do you build a sales culture?
• 100% Management/Ownership “Buy In”
– Cultures are driven top down
– Production and administration must
participate
– Removing people who get in the way
– Recruiting sales talent to raise the bar
– Measuring and sharing individual results
company-wide
Marketing
• Marketing defined:
– Activity to improve the sales environment
and increase the number of sales
opportunities.
• Truly effective marketing makes the
sales process much more successful.
• Marketing and Sales were the primary
drivers of success in the restoration
business.
Branding
• Branding defined:
– The sum total of a company's value,
including services, people, advertising,
positioning, and culture.
• Achieved:
– Via the use of logos, symbols, product
design, and employee image driven by
behavior used in promoting customer
awareness.
The New X Factor
Customer Satisfaction!
Program Work
• The insurance companies and TPA’s
have successfully transformed the
residential restoration industry into a
customer satisfaction driven model.
• No longer is having a strong sales and
marketing culture enough to be
successful and grow.
• The commoditization of the industry has
begun!
Industry Evolution
• Old School
– 100% relationship driven
– Strong production companies were given the work, very
little bidding
• Sales and Marketing Driven
– Strong sales organizations realize significant growth
– Chasing losses becomes the standard
– End user marketing begins
• Program Work
– Driven by customer satisfaction results
The Formula for Success Today
• #1) Customer Satisfaction
– Measuring results on every job and every
employee level
– Communicating internally all customer
satisfaction data
– Rewarding those with the highest customer
satisfaction results
• #2) Sales & Marketing Culture
– Hire the best talent
– Incentive driven compensation plans
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The Formula for Success Today
• #3) Branding
– Professional
– Non-stop
• #4) Training & Development
– Best and brightest in the industry
– Continuous professional and personal
development
Building a Sales
Based Culture
Mark Davis
InStar
Business Mentors
Marketing and Business Development Summit
April 21, 2010