Which is better, inside sales or outside sales? The answer may not be as straightforward as you think. On the one hand, inside sales can generate higher revenue for your business because of reduced lead generation costs and has lower risk than outside sales. However, with no face-to-face interactions with customers it's often more difficult to close deals on an inside sale. So who wins this debate? Read the blog to know this!
Inside Sales vs Outside Sales: Which One Stands Out & Why?
Is it better to sell indoors or outside? These two tactics are frequently claimed to be at odds with one another.
However, in today's market, the two positions are merging - and both have become critical components of sales teams.
So, are the lines truly hazy? Are inside sales just regular sales? Are you undecided on which route to market to take? Read below!
What are Inside Sales?
Inside sales teams find a unique position within the overall sales function. When referring to this group of people, typically what comes to mind is a team that makes outbound calls to prospects and engages with them from an inside perspective. What separates this from outside sales is that they don't have conversations that result in closing deals on the spot. While they may be responsible for following up on leads, their focus tends more toward gaining insight into customer needs and identifying who would be a fit for your company or product.
What are Outside Sales?
When we talk about outside sales we mean those professionals who are engaged with customers face-to-face (or via phone) and must close deals as quickly as possible. While there is some overlap with inside sales, outside sales professionals tend to focus more on the B2C market (e.g., retail). They typically make cold calls or use other techniques to get in touch with potential customers and secure meetings right away.
Inside vs Outside Sales
Inside sales focus more on the discovery phase, building relationships, and research while outside salespeople are responsible for closing deals ASAP. Inside reps have a deeper knowledge of customer buying cycles compared to their counterparts in the outside world. Although their main goal is still revenue generation, they are focused on getting closer to delivering value by understanding what's most important to customers—giving them a competitive advantage when it comes time to close the deal.
Differences In Sales Cycle!
Inside sales professionals are usually closer to the product and have a better understanding of customer needs because they engage with customers before a buying decision is made. They are often involved earlier in the sales cycle, which results in more opportunities being identified. This enables them to prioritize their time so they can focus on accounts that are most likely to convert into revenue for your company.
Different Sales Tools
Inside sales reps have more company-provided tools at their disposal. They can make use of things like demo videos and product training materials, whereas outside sales teams typically only work with the data in their CRM systems and whatever personal knowledge they already have. This is because inside sales don't require employees to be in the field as much (or at all).
Both inside reps and outside reps use CRMs as an essential part of day-to-day work, but there are some differences between how this tool is used by each group. Inside sales workers rely heavily on data entry features within the software since this information directly impacts their ability to engage prospects effectively. Outside reps benefit more from the relationship-management tools, which they would use for building rapport with clients.
Variations In Skill Sets
Inside sales workers tend to have less technical knowledge of their products, but more importantly, they need to be good communicators and relationship builders. They must be able to engage with prospects as an expert without making them feel like they are being sold. Outside reps should be good at managing relationships with customers, but it's even more important that they can close deals successfully by overcoming objections and demonstrating how the customer will benefit from using your product or service.
Inside sales professionals are all about uncovering insights and information that will help them better position their product or service to interested customers. They need to be able to navigate complex websites, understand pricing schemes, and understand technical jargon associated with the products they sell. Outside reps need the ability to build rapport quickly since many of their prospects don't know who they are or what they do. They also need strong communication skills so they can convey why potential clients should buy your company's products or services over competitors' solutions.
Core Metrics That Matter!
Inside reps typically measure performance based on lead quality, win rate, close rate, and quota attainment. As a result, they can better forecast revenue by factoring these metrics into their projections. Outside reps tend to focus more on key ratios such as cost per lead and number of appointments scheduled. Since it often takes multiple meetings for these professionals to secure a deal, their success is largely judged on meeting or beating quotas set by management.
Both inside and outside teams rely on metrics when determining success. Some of the most common metrics include several leads generated, number of qualified leads, lead-to-opportunity ratio, number of opportunities won/lost, win rate, and average deal size. Both teams rely heavily on these measurements to map out their sales strategy - especially when it comes time to set realistic quotas for each team member.
Sales Team Structure
Inside and outside reps tend to have different structures in place. Inside teams typically consist of 1-2 individuals while outside teams usually include at least 3 people (one inside support person, one account manager, and one closing rep). These two variations can also be used within the same company - for example, having a dedicated inside pre-sales specialist who helps uncover customer insights before passing leads on to an inside sales team. This approach is helpful when you are already generating high volumes of leads but need more time to qualify them properly before sending them over to outside reps who deal directly with customers.
Depending on your business needs and goals, you may decide that having both inside and outside reps will serve you best. When this is the case it makes sense to have one person serve as the liaison between these two groups so they can identify when trades are needed or what skill sets are available for particular clients. These sorts of decisions help smooth the process when moving between inside and outside sales cycles.
Sales Strategies For Both The Inside & Outside Sales Teams!
The outside team should focus on closing deals quickly. They need to be able to establish themselves as experts in their field so potential clients believe they can solve their problems. The inside team's job is all about building relationships, understanding customer needs, and providing excellent service throughout the sales cycle. These reps are often involved earlier than outside reps which means they are privy to more info that gives them a competitive advantage when it comes time for signing new business. Companies that rely heavily on B2B or enterprise sales will find that having both teams in place helps them to scale quickly and win customers with ease.
Companies that have separate teams follow different strategies as they move forward with their plan. In some cases, a company may decide to let the two groups operate independently from each other since the needs of those customers are so different. In other cases, each team works together to increase overall revenue so there is a natural synergy between these two approaches. This allows you to maximize your potential by developing a well-rounded sales approach that covers all bases.
Product-Led Sales Strategy!
Some companies prefer to have their sales reps focus on more of a product-led approach. This means the inside rep will be responsible for understanding customer concerns and needs, while the outside rep is tasked with keeping customers up to date on new products and enhancements made to existing ones. This strategy ensures that your reps are always one step ahead of your competition by providing customers with additional reasons to buy from you rather than another company.
This strategy calls for one group to focus on understanding customer pain points while simultaneously working on ways to position your product or service as a solution that will help them reach their goals more quickly. The other group focuses on developing new leads and nurturing relationships with existing accounts.
Outbound Sales Strategy!
An outbound sales strategy involves one group identifying potential customers and consistently engaging them with educational content that leaves the door open for future opportunities. The other team does the same but also works to increase revenue by nurturing relationships, uncovering new opportunities, and closing deals.
The main goal of this strategy is to increase the number of inbound leads by making it easier for potential customers to connect with your business. This strategy works best when the product or service you offer is easy to understand, creating an opportunity to help prospects before they feel overwhelmed by too much information. By doing this, it becomes more likely that they'll seek out additional information about what you do and how you can help them solve their problems.
Which Sales Strategy Is Right For Your Business?
With a smart sales strategy in place, you'll find it easier to manage your team, enhance customer relationships, and increase revenue. However, there's no one-size-fits-all solution to this problem - each company will have different needs based on what they sell and to whom they sell it. To achieve the best results for your business, you need a customized approach that not only fits with current strategies but also anticipates changes in the future. By asking yourself these questions when developing your sales strategy you can create an approach that works best for your organization:
It is important to take a look at your company's current needs before deciding which approach will best serve your customer base. You shall also want to consider the level of expertise you have on your team, as well as what type of products or services are available. Finally, it is crucial that you take a hard look at your industry and how your competitors are using their sales teams before drawing up a plan.
