inside sales

Inside sales or outside sales; during the pandemic almost the majority of the salespeople are selling remotely, but as the world is healing; which feels more normal now, which model should one company default to? Two sales that are completely at odds with each other one: are focused on clients with high acquisition costs and high annual account value and the other focuses on high sales velocity. But the truth is they are two sides of the same coin you likely need both of them to run your company. In this article we are going to determine which is the best balance for your organization, let us take a look at the nitty-gritty details of what you need.

What is Inside sales? | Inside sales Meaning | What does Inside Sales Mean?

Or remote sales meaning; it is done entirely in the office from the sales rep’s desk. Instead of selling door-to-door and face-to-face inside sales making use of the communication tools that modern salespeople have at their disposal, phone, email, CRM platforms, and much more it is one of the topmost sales models in B2B, especially for SaaS. One of the common misconceptions that are finally starting to fade is; that it inside sales is just telemarketing, the difference here is that telemarketing is automated, it can be done by anyone even a computer but inside sales, however, needs a skilled salesperson it is done by combining CRM platform with outbound sales.

Suggested Read: A career as Inside Sales Rep

What is Outside Sales? | Outside Sales Meaning | What does Outside Sales Mean?

The secret is in its name itself, it means the selling of products and services in person or face-to-face interaction it can also be called field sales, the outside sales rep doesn’t work in-house: instead, they meet with prospects outside the office. This usually involves a large amount of travel autonomy and emotional intelligence. This part of sales deals with large and more expensive accounts than an inside sales rep. They are often called company superstars. With today’s sales tools like Skype and Zoom, a large portion of jobs can be done from the office. What sets outside sales apart from everything else is the flexibility and willingness to be in person whenever or wherever needed to make the sale.

Inside Sales Vs Outside Sales

Inside sales and outside sales represent two distinct approaches to selling products or services, each with its own set of advantages and challenges. The primary difference between the two lies in the location and nature of the sales interactions. Let's explore the characteristics of inside sales and outside sales:

Inside Sales:

  1. Location:

    • Inside sales involve sales professionals who conduct their activities remotely, often from an office or another centralized location.
    • Communication is typically done through phone calls, video conferencing, emails, and other virtual channels.
  2. Customer Interaction:

    • Inside sales representatives connect with clients and prospects without meeting them face-to-face.
    • The sales process relies heavily on building relationships through virtual means.
  3. Technology Dependence:

    • Inside sales heavily utilizes technology, including customer relationship management (CRM) software, video conferencing tools, and various communication platforms.
  4. Cost-Efficiency:

    • Generally, inside sales is considered more cost-effective as it eliminates travel expenses associated with outside sales.
    • It allows for a higher volume of interactions due to reduced time spent on travel.
  5. Volume and Velocity:

    • Inside sales teams often focus on a higher volume of transactions with shorter sales cycles.
    • It is well-suited for industries where a remote sales approach is practical and efficient.

Outside Sales:

  1. Location:

    • Outside sales, also known as field sales or traditional sales, involves sales representatives who travel to meet clients in person.
    • Face-to-face interactions are a significant part of the outside sales process.
  2. Customer Interaction:

    • Outside sales representatives build relationships through in-person meetings, product demonstrations, and personalized interactions.
    • This approach is often more relationship-driven, emphasizing trust-building.
  3. Technology Integration:

    • Outside sales still leverages technology, but the emphasis is on using tools to enhance in-person presentations and communication.
  4. Complex Sales:

    • Outside sales is often associated with more complex and high-value transactions.
    • Industries such as real estate, industrial equipment, and enterprise-level solutions commonly rely on outside sales.
  5. Relationship Building:

    • The personal touch of face-to-face meetings can be crucial for building strong, long-term relationships with clients.
    • Outside sales may be preferred in industries where the sales cycle is longer and involves multiple stakeholders.

Traditionally companies have focused primarily on outside sales but the industry is changing. Inside sales are growing at a massive rate of 15 times faster than outside sales. Most of the teams now tend to have 50/50 for their teams, People are now becoming more comfortable in making large purchases online no matter what your product is other small or big you need to make sure that you have a team that can do both inside and outside sales.

Choosing Between Inside Sales and Outside Sales:

  • Nature of the Product/Service:

    • Consider the complexity and value of the product or service you are selling. Higher-value and complex offerings may benefit from the personal touch of outside sales.
  • Industry and Target Audience:

    • Industries and customer demographics play a role. Some industries may be better suited for remote interactions, while others demand a more hands-on approach.
  • Cost Considerations:

    • Evaluate the costs associated with each approach. Inside sales is often more cost-effective, but the nature of your business may warrant the investment in outside sales.
  • Sales Cycle Length:

    • If your sales cycle is relatively short and involves transactional sales, inside sales might be more appropriate. For longer sales cycles, especially in relationship-driven industries, outside sales may be preferred.

Ultimately, the choice between inside sales and outside sales depends on the specific needs and characteristics of your business, the industry you operate in, and the preferences of your target audience. Many organizations use a combination of both approaches to leverage the benefits of each.

The Benefit of Inside Sales

Let’s take a look at a few key benefits of having an inside sales team here are some of the most impactful ones:

Faster response time to leads

The inside sales team will be able to respond to queries quickly through emails through a phone call, there is no necessity for an in-person visit a phone call video call or email is a viable communication channel, but if you are outside the sales team your representatives will need to make a trip to the customer’s location to answer queries or provide help.

Reduced cost of sales

Your sales rep can send emails and make calls at a faster rate than, if they had to give a person a visit, each contact with the new lead costs less than for an outside sales team. Research has found that inside sales can reduce the cost of sales by 40 to 90% in comparison to field sales.

Spend more time selling

Inside sales reps spend 35% of their week selling compared to 22% for outside sales representatives they don’t need to spend their time travelling that can be put to watching respecting and following up with more leads.

Easier to scale the team

It is not a secret that scaling a sales team is tricky if you want someone to switch territories or hire new reps. It is very location-specific; many sales reps can be re-elected to change territory inside the sales team as far more scalable as they require less location-specific knowledge and of customer relations.

Increase teamwork

You can structure your inside sales team in such a way that encourages collaboration, for example, you can have one team member who makes introductory calls to determine what the customer needs, and after the first call, you can have an accountant rep take over. But in the outside sales process, it relies on one person managing the whole sales process and more independently.

Benefits of Outside Sales

Spending personalized time with clients in person, can help in making the more invested and make you an effective outside sales representative let us look at some perks duty of outside sales models;

Develop stronger client relationships

Relationship with the client over a phone call is not easy, outside sales enable your team to build relationships with each other and tailor the sales process to their exact needs.

Higher closing ratios

An outside sale can convert 40% more prospects than inside sales reps. This does not mean that outside sales are better in every case if you are selling to a large client that face-to-face meeting can be more influential than an email or a video call. It is also easier to manage the complex sales process that can involve many decision-makers.

Commission can be motivating

We all know that outside sales operate with the commission-based payment structure, outside sales are used when you are selling to enterprise clients so the higher Commission makes sense this can be a motivating factor for your team and it ensures that the focus of the sales team is closing the deal with qualified leads.