Sales in the construction industry

Sales in the construction industry face numerous challenges. Constant price pressure, low trust, high risk in construction projects and the large number of influencers on the respective buying center. These are usually countered by salespeople who are barely digitized and many internal processes that are still largely carried out manually. Our client was faced with the challenge that the increasing number of influencers and competitive pressure were leading to stagnation. Satisfaction in the sales team, especially among the younger members, was steadily declining and more and more customers were opting for the competition.

A sales excellence assessment was carried out in collaboration with CustomersX®. The key weaknesses and potentials were identified in order to focus on increasing growth and profit. In the subsequent project, the customer database was solidly established, employees were digitized, trained in the latest sales approaches and numerous internal processes were automated. The result was a significant increase in sales efficiency. Better data and a modern sales system also increased the impact, particularly with A and B customers. Profit and growth picked up again and the sales team’s workload was significantly reduced.

At a glance

The full story on sales in the construction industry

In many companies, the sales department is rarely changed. This is especially true for sales in the construction industry. Many processes become established over the years, existing skills are consolidated and it is easy to get the impression that everything is going according to plan. However, especially in sectors such as the construction industry, which is affected by many changes and characterized by very tough competition, such a mindset quickly leads to major dangers. Sales systems that have not been changed for years can usually only be changed at great expense. This creates a major risk for the company and a high potential for frustration for the employees. Our customer had also not made any changes or provided any training in sales for years. When profits and growth stagnated, the company tried to counteract this by cutting costs and increasing pressure. However, they were not successful. The realization matured that the sales system should be systematically adapted to the new reality and that changes should be made more continuously in the future.

Based on our DTC approach , we developed a project approach to introduce sales excellence as a management competence in the company. Two objectives were pursued: (1) to adapt the existing sales system to changes in the market and among customers and (2) to enable the company to independently implement the respective necessary changes in the future.

The first step was to determine the strengths and weaknesses of the existing sales system using our Sales Excellence approach. This involved conducting an internal survey of employees and an external survey of customers. This made it possible to determine the key value drivers and develop a focused improvement approach. We recommend the use of Sales Excellence in practice because there are many “construction sites” in sales in particular due to the lack of systematic further development. This can easily lead to those responsible getting bogged down. Sales Excellence allows for an in-depth understanding and, building on this, a clear focus.

In a second step, a sales strategy was developed. Previously, sales had been managed using sales targets. A systematic sales strategy with clear development targets for the individual areas was not used. The focus of the new sales strategy was on expanding the use of customer data. In addition, a roadmap was drawn up for the digitalization of employees and the automation of internal processes. To this end, various software applications were evaluated and their added value for the company determined.

In the third step, several activities were carried out. Our IT team connected the different systems to make it easier for sales employees to obtain customer data and use it in their day-to-day work. In addition, marketing automation with basic CRM functions was introduced. Both steps meant that the sales staff were able to visit customers with a tablet. They were able to use this to collect customer data but also for support during sales talks. In addition, a customer value model was developed and customer care was systematized. Based on an ABCD segmentation, clear guidelines were developed with regard to contact channel, intensity and time budget. Finally, the sales employees were trained to apply the latest findings from solution and insights selling. The combination of a relevant data basis and modern sales techniques against the backdrop of maximum efficiency led to immediate success.

In the final step, the data system was expanded after four months. The automation systems were also developed further. The focus was on consolidating the sales team’s sales skills. To this end, two training days were held to review the implementation of the sales approaches by the employees and strengthen their skills.

In summary, sales optimization offers enormous potential. Sales in the construction industry in particular faces numerous challenges. Without relevant data regarding the buying center and the numerous stakeholders, digitalization of the sales team and the application of modern sales approaches, effectiveness quickly falls by the wayside. It is important to combine the individual elements systematically and purposefully in terms of sales excellence. Ultimately, the goal is to be just one step better than the competition.

* We take confidentiality with our customers seriously. The name has been changed, the results are real.