Many small business owners believe that hiring a great salesperson will immediately boost their company’s revenue. However, without a clearly defined sales process, businesses risk losing money rather than gaining it. It’s essential that small business owners establish a strong, distinct structure before bringing a salesperson on board. Without this framework, even the most skilled salesperson will struggle to achieve success.
In today’s episode of The Small Business Show, we’re joined by Melinda Emerson, also known as the “SmallBizLady“. She’s America’s #1 Small Business expert, CEO of Quintessence Group, and best-selling author. Today, Emerson will teach how to build the proper framework to prepare for hiring a salesperson.
Lead generation
In order to generate consistent business, small businesses must already have a reliable and continuous stream of leads. Too often, business owners expect their salespeople to generate their own leads, but this can create a frustrating and inefficient sales environment. A comprehensive marketing strategy is crucial to creating and qualifying leads, ensuring that your salesperson’s efforts are directed at the right prospects.
Emerson recommends building a lead scoring system to evaluate the quality of potential customers. This system helps to ensure that only the most qualified leads—those who are genuinely interested and financially capable—are passed on to the sales team. It also filters out time-wasters who are unlikely to convert into paying customers, allowing salespeople to focus their efforts on high-value opportunities.
For leads that may not be financially qualified for your primary offering, Emerson advises developing a downsell strategy. This allows you to offer alternative products or lower-tier services to customers who may not be able to afford your highest-tier offerings, ensuring you don’t lose out on a sale entirely.
CRM system
Emerson stresses that the relationship with a customer doesn’t end at the point of sale—it begins there. Once a customer has made a purchase, the key to long-term success is nurturing that relationship to encourage repeat business and customer loyalty.
A CRM (Customer Relationship Management) system is an invaluable tool to effectively store and manage customer information. By having easy access to detailed customer data, small businesses can tailor their follow-up interactions and ensure that customers feel valued and understood. This personalized approach can significantly increase the likelihood of repeat business.
Studies show that retaining existing customers can lead to increased spending, with an estimated 60-65% of customers making repeat purchases. Building a strong customer relationship is key to maximizing this potential.
Some best customer service practices include:
- Providing live chat support with real agents to address complex issues and provide personalized assistance.
- Implementing a robust FAQ section and automated systems to streamline routine inquiries and support, saving time for both customers and your team.
- Encouraging referrals from satisfied customers, leveraging the power of word-of-mouth marketing to attract new business.
Call tracking system
For businesses that rely heavily on phone calls to close sales, Emerson recommends implementing a dialer system to add a layer of accountability to the sales process. This system ensures that all calls are logged and tracked, making it easier to identify where sales may be stalling and improve follow-up actions.
Call tracking also allows you to evaluate the effectiveness of different marketing campaigns, ensuring that your efforts are driving high-quality leads into your sales pipeline.
Daily sales huddles
Emerson recommends that business owners host daily meetings with their sales teams to keep them focused, aligned with goals, and accountable for their performance. These daily “sales huddles” don’t need to be long but should serve as a quick check-in to ensure everyone is on track, discuss any roadblocks, and reinforce key objectives for the day. Regular team huddles help foster a culture of accountability and ensure that sales goals are consistently met.
Key performance indicators (KPIs)
Key Performance Indicators (KPIs) are essential for measuring your team’s success and efficiency. As a small business owner, identifying the right metrics is crucial to understanding how your sales team is performing and pinpointing areas that need improvement.
KPIs can vary by industry, but some common metrics that can help gauge sales performance include:
- Sales conversion rates: The percentage of leads that turn into paying customers.
- Average deal size: The average dollar amount generated per sale.
- Sales cycle length: The average time it takes from initial contact to closing the deal.
Regularly tracking these metrics allows you to make data-driven decisions to improve sales strategies and optimize team performance.
Common mistakes
One of the most common mistakes small business owners make is hiring friends, family, or acquaintances. While it may seem convenient, this can create complicated dynamics. In the worst-case scenario, these individuals may lack the necessary experience, making it difficult for them to succeed in their newly appointed role. This can lead to awkward and difficult situations, especially if the business owner has to make a tough decision that might jeopardize the personal relationship.
Emerson recommends that all critical roles, especially sales positions, be filled by candidates who possess the proper qualifications, experience, and expertise. This ensures that new hires are equipped to succeed from day one and will not compromise the business’s long-term success.
She also highlights the importance of onboarding salespeople correctly and thoroughly. Proper training is essential, so new hires fully understand your product offerings, your sales process, and the tools they will be using to engage with customers.
This includes providing them with:
- Voicemail and email scripts to help them engage prospects with consistent messaging.
- Product knowledge training to ensure they can confidently answer questions and close sales.
- Regular performance feedback to help them stay on track and improve their results.
With these key strategies in place, small business owners will be better positioned to integrate a salesperson into their team. By having a strong foundation—consistent lead generation, a CRM system, proper call tracking, daily sales meetings, and clear KPIs—you can ensure that your new hire has the tools and support necessary for success.
"Visibility without a plan is a hobby." – Melinda Emerson
