Businesses around the world continually look to streamline their operations, with the ultimate goal of saving money on overhead costs. Cost-effective strategies can improve profitability, and nowhere is this more important than in sales. Outsourced sales operations are being adopted by companies of every size and type, allowing them to reach new audiences, reduce risk, and generate leads.
With this cost-saving opportunity, an outsourced sales team can transform sales operations, leading to improved revenue streams and new customers by leveraging the power of a dedicated, full-time staff.
In this guide, we’ll explore the concept of sales outsourcing, including outsourced telemarketing services, Then, and how this practice can save money, improve efficiency, and stimulate business growth.
How Outsourced Sales Companies Help
In simple terms, sales outsourcing or “outsourced sales” is turning over the sales process operations (or a part of them) to an outside agency or individual. There are many outsourcing service providers, each with their own unique way of conducting these operations. Such providers have extensive training and protocols, and many employ advanced technologies to track customer engagements, providing detailed data to the clients they are working for.
Can Third-Party Resources Really Improve Sales Processes?
When one thinks of using a third-party sales team to improve the operation, many companies tend to misunderstand the value inherent in this type of arrangement. Trying to revamp the sales model without farming out to a third party can often lead to trouble. Examples of potential pitfalls companies may experience when trying to save money on costs include:
- Utilizing indirect providers and services, such as product/service resellers or so-called “solution partners”.
- Handing over sales to employees not qualified or experienced enough to handle the unique tasks. Imagine what would happen if your product engineers also handled sales functions , including reaching out to potential customers – doing so could be a recipe for disaster.
- Trying to create new opportunities by adding commission-only professionals or agents to the mix. In a loose sense, the above examples are forms of outsourced sales, but the reality is that these three examples are situations a smart company will avoid whenever possible. Effective providers have the experience, the tools, and the tactics needed to handle the most critical aspects of operating a business: Engaging with potential customers.
Challenges in Sales
Many small business operations struggle with the challenges of reaching new customers. The process of sales – attracting new customers and converting contacts into transactions – is already challenging enough. Small companies can face significant hurdles in this department. These hurdles may stem from a lack of experience on the sales team, especially in lead generation and marketing techniques, or may require expenditures a company and its staff are unprepared for.
Advancing Technologies and Sales Verticals
Advances and shifts in technology can also create complications in the sales and marketing arena. New technologies and ever-changing practices become available on a constant basis, and these new features may force a company to adapt its selling approaches quickly. For example, changes in communications tools or evolution of customer preferences may necessitate a revised sales practice to leverage successfully, and many companies do not have the flexibility or experience needed to do so. Social media marketing is an illustration of shifting consumer preferences; using social media platforms effectively has been difficult for many business operations unfamiliar with the tools and techniques needed to succeed in this arena.
In-House Sales Team Costs
Costs represent significant challenges companies face in selling. Overhead costs are always a concern, regardless of the size of the business in question. Having a rep or two in the office is not cheap. Doing more with less has become the mantra in the modern business world, and this has dramatically altered the sales process.
Unfortunately, without careful evaluation and overview of practices, costs can run out of control. The direct costs associated with in-house sales efforts, particularly the cost per lead generated, can harm a company’s profitability, especially as these costs increase over time through inefficiency. It is clear that a solution is needed to rein in costs and to improve efficiency. That solution is the outsourcing of inside sales.