Inside sales-as-a-service and traditional sales (outside sales), the two prominent approaches to B2B sales, have become a vital part of sales organizations, making it important for businesses to incorporate them into their modern sales strategy. The terms inside sales-as-a-service and outside sales are common in the B2B landscape, as their goal is the same for both (i.e., to generate more revenue), but the difference lies in their concepts and functioning.
Understanding the subtle differences between these two approaches is essential to helping organizations optimize their sales strategies and implement the right marketing and sales processes for their business growth. To decide which sales strategy is beneficial to use, it is necessary to understand the intricacies, advantages and disadvantages of each strategy.
In this blog, we will delve into the core difference between inside sales and outside sales and provide valuable perspectives to help you understand the right sales process that will enhance your sales effectiveness in the digital age.
What is inside sales?
Popular in the B2B space, particularly in the tech industry, inside sales refers to the practice of selling products or services remotely to your potential customers via phone calls, emails, video conferencing, or other digital platforms. Rather than face-to-face interactions, inside sales rely on digital communication channels to connect with potential buyers and close deals. According to Gartner report, by 2025 up to 80% of B2B sales contacts will take place through digital world.
Inside sales professionals use a variety of communication methods to engage with prospects, qualify leads, negotiate deals, and close sales while working from a central location, such as an office or call center. Inside sales have grown in popularity in recent years, due to technological improvements, changing customer preferences, and the demand for cost-effective selling strategies. With this strategy, sales teams may expand their audience, scale their operations more effectively, and adjust to changing market conditions. Numerous benefits come with this strategy, including scalability, affordability, and the potential to reach a larger audience. Inside sales representatives enjoy the benefit of operating from a single location, which facilitates effective resource sharing and teamwork.
It enables sales representatives to contact a worldwide clientele without having to travel. Additionally, it helps sales teams keep a more thorough record and analysis of customer interactions.
What is outside sales?
Also known as field sales, outside sales is the most traditional approach where sales professionals engage with potential prospects and customers through face-to-face interactions. Outside sales refers to the practice of selling products or services through in-person interactions, typically meeting them at their location, such as trade shows, conferences, and industry events.
Unlike inside sales, which rely on remote communication methods, outside sales involve salespeople traveling to meet with prospects in person to conduct sales meetings, presentations, demonstrations, and negotiations. Developing long-term relationships with clients is a key component of the outside sales approach. Salespeople frequently collaborate directly with customers to comprehend their needs, offer customized solutions, and support them throughout the whole sales process. Establishing a personal relationship with customers facilitates a greater understanding of their preferences and problems, making it easier to offer products or services that satisfy their needs.
Although it may take more time and effort than inside sales, outside sales often generate more revenue because they give salespeople the opportunity to build stronger bonds with customers and earn their trust. It’s an essential component of an effective sales strategy that collaborates with other techniques to target various clientele and meet their unique requirements.
Additionally, companies that sell pricey, customized, or detailed goods or services find success with outside sales. With this method, sales representatives personally greet clients and are able to demonstrate operations, offer a sample of the product, and promptly address any queries. This interactive strategy is quite beneficial for persuading clients to buy. It’s similar to when a salesperson allows you to test out a new device at a store before you purchase it.
Inside Sales-as-a-Service vs. Outside Sales
Below are some key differences between the two approaches—inside sales as a service and outside sales—to better understand their strengths, weaknesses, and suitability for modern businesses.
Differences in reaching and contacting the customer
Outside sales: In this approach, salespeople usually operate from an office or a field site, interacting with potential customers via phone conversations, in-person meetings, and networking activities. It takes a lot of time and labor to reach potential clients through manual, labor-intensive sales efforts.
Inside Sales-as-a-Service: This method of conducting sales activities virtually makes use of technology and remote communication capabilities. Salespeople engage with prospects and customers using email, phone conversations, video conferencing, and internet platforms, whether working remotely or from a central location.
Differences in the sales cycle
Outside sales: Outside sales: Outside sales typically have a longer sales cycle. Salespeople devote more time to developing connections and having one-on-one, customized conversations. Because outside sales are physically demanding, closing negotiations may take longer than expected as multiple meetings and personal visits may be required to conclude agreements.
Inside sales-as-a-service: In this approach, sales cycles are usually shorter and faster. Inside sales staff quickly connect with potential clients using remote communication techniques like emails and phone conversations. The simplicity with which they can arrange meetings and follow-ups allows them to frequently move leads through the sales funnel more quickly.
Geographical Scope
Outside sales: Since sales personnel frequently have to travel in order to meet with clients or prospects in person, traditional sales may be restricted by geographic restrictions. This can lead to longer sales cycles and greater travel expenses, especially for companies that target customers in multiple regions.
Inside Sales-as-a-Service: This technology allows salespeople to interact with clients and prospects at a distance, overcoming geographical constraints. Because sales efforts may be focused on target markets regardless of geography, this enables greater reach and scalability and promotes more effective and economical sales operations.
Sales tool
Outside sales: Since they travel to meet customers, outside sales professionals bring along things like brochures and product samples to show to their prospective customers. While they’re on the go, representatives can also rapidly verify crucial consumer information using smartphone apps. To avoid wasting time traveling, they may employ specialized technologies to help schedule and determine optimal routes for individual meetings. Outside salespeople can maximize their personal customer contacts with the help of these tools and strategies.
Inside sales-as-a-service: Inside sales professionals use software tools such as customer relationship management software, cold emailing platforms, and video conferencing apps to connect with customers. Inside sales teams may track conversations, handle leads, and maintain efficient contact with prospects with the use of these technologies.
Cost and resource allocation
Outside sales: In this approach, operations typically require significant investments in office space, infrastructure, and travel expenses in order to sustain sales personnel. Additionally, hiring and training sales personnel may be expensive and time-consuming, particularly for businesses expanding into new markets.
Inside sales as a service: It is a more economical option because it does not require actual office space, and overhead costs related to infrastructure and travel are also reduced. Businesses can obtain qualified salespeople on a flexible basis by utilizing third-party service providers, which improves resource allocation and scalability.
Customer engagement and experience
Outside sales: This approach prioritizes in-person contacts, offering chances for individualized customer involvement and relationship-building.
Inside Sales-as-a-Service: This approach places a strong emphasis on virtual lines of contact, allowing sales personnel to interact with clients via phone conversations, email correspondence, live chat, and video conferencing. Even if it might not have the same personal touch as face-to-face conversations, for contemporary consumers who prefer digital communication, this gives more accessibility and ease.
In conclusion, inside sales-as-a-service is a strong alternative for companies wishing to optimize their sales processes, cut expenses, and reach a wider audience. Outside sales tactics have long been the mainstay of sales operations. Businesses can choose the best sales methodology for their particular needs and goals in the fast-paced commercial world of today by knowing the main differences between these approaches. To know more about our inside sales as-a-service, contact us at smohite@tslmarketing.com.
Conclusion
In summary, the argument between traditional outside sales and inside sales-as-a-service marks a turning point in the development of sales approaches. To meet the various demands of businesses, market conditions, and consumer preferences, each strategy has its own advantages and disadvantages.
Inside sales-as-a-service helps businesses reach a wider audience, grow sales activities more effectively, and respond quickly to shifting market conditions. By leveraging data-driven strategies and virtual communication channels, businesses can streamline their sales processes, cut expenses, and interact with customers remotely.
Conversely, traditional outside sales is better at building relationships, offering direct assistance, and giving customers high-touch experiences through personal meetings. Building trust, comprehending client demands, and closing deals can be achieved through outside sales, which are important for businesses requiring a consultative approach, complex sales cycles, or specialized expertise.
The decision between inside sales as a service and outside sales ultimately depends on many variables, such as organizational objectives, target market preferences, industry trends, and resource limitations. By embracing the best of both sales approaches, i.e., the strengths of inside sales as a service and outside sales, and integrating them into a unified sales strategy, businesses may optimize their sales effectiveness, drive growth, and retain clients effectively.
Are you ready to transform your business with inside sales-as-a-service? TSL Consulting can help!
Utilizing experience in strategy formulation, market research, and sales enablement, TSL leads the industry in providing “inside sales as a service.” Our collaborative approach starts with an in-depth understanding of your specific business needs and ends with custom solutions to meet your goals. With a solid track record, our personnel are committed to giving each partner the best possible service and support.
FAQs on inside sales as-a-service and outside sales
Q1. Which sales approach is more cost-effective: inside sales or outside sales?
A1. Due to lower travel costs, overhead, and infrastructure needs, inside sales as a service are typically thought to be more economical than outside sales.
Q2. Which sales strategy works best in high-touch or complex sales engagements?
A2. For complicated or high-touch sales engagements that call for face-to-face communication, relationship-building, and practical assistance, outside sales is frequently chosen.
Q3. In what ways are inside sales and outside sales different in terms of reach and scalability?
A3. Compared to outside sales, inside sales-as-a-services are more scalable and have a wider reach since they enable salespersons to interact with a larger audience and target various markets remotely.
Q4. What factors should be consider when choosing between outside sales and inside sales as a service?
A4. Target market preferences, business dynamics, sales goals, resource limitations, and the kind of goods or services being offered are some of the factors that should be considered.
Q5. How can companies make the switch from outside sales to inside sales-as-a-service?
A5. By investing in infrastructure, training, and technology to support remote sales operations, adopting data-driven sales strategies, and customizing sales procedures for virtual communication channels, businesses can make the shift from outside sales to inside sales-as-a-service.
Q6. Why is outside sales superior to inside sales?
A6. The in-person interactions an outside sales professional has with their clients are one of their main advantages. Direct communication helps establish closer relationships with customers, creating a higher level of loyalty among regular customers.
