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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 • • • • • • 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 • • • • • • • 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 – 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