7 Benefits of Outsourcing Your Sales Team
All successful businesses have something in common: namely, a clearly defined sales process. Sales processes are important for the creation of consistent revenue and improving business performance as a whole.
The Sales Process
The Sales Process outlines the series of steps the sales team follows, from identifying potential customers to the actual sale of products or services, in an effort to maximize sales and constantly boost revenue. While the specific details of the entire process vary from business to business it generally follows the following sequence:
- Prospecting for Leads – this involves identifying target audiences and various channels to reach them. In order for a business to have a successful lead generation strategy, it must first know who its ideal customers are
- Initiating Contact – this is where lead generation takes place. The ideal channel to make the first contact is identified. Whether it be cold calling or emails this process is the first point of contact for customers in the sales funnel.
- Lead Qualification – qualified leads are potential customers who not only fit a customer avatar but interested and in a position to purchase from or do business with a company. At this stage in the sales strategy sales reps strategically communicate with potential customers to ensure they are the right fit for your services
- Presentation of an Offer – Once qualified leads are identified sales agents then focus on attractively presenting product or service packages to prospects.
- Handling Any Objection – effective sales professionals ensure customer service is of paramount importance when dealing with potential clients. They answer any questions customers may have about services and reassure them if they have any concerns
- Closing the Deal – once potential clients have been presented with offers and all queries addressed sales professionals then focus on closing deals. this includes add-ons and upsells to create additional value
- Follow-up or Generate Referrals – sales reps do not stop providing excellent customer service once a sale is made. The entire sales process is not complete if follow-up calls are not made to ensure services not only meet but exceed expectations. Maintaining a good relationship with clients also augers well for the generation of referrals which is always welcomed.
Having the right mix of experience and expertise in a business is of utmost importance in determining business success. Around 300,000 jobs are outsourced by the US annually. These of course include sales jobs. In order to ensure the success of your sales process, it is essential to have the right people to handle the sales cycle stages. If a company does not have sufficient expertise or physical staff within its internal teams to execute its sales process then sales outsourcing maybe is the best option to ensure the effective execution of strategies.
Sales Outsourcing is the practice of outsourcing some or all of your sales functions to an external entity. This is often done due to shortfalls in the internal sales team such as staffing, time, resources, or technical know-how to execute the sales process in-house.
Sales Outsourcing can be done in two ways:
- Outsourcing the entire sales cycle
- Partial outsourcing whereby only some of the functions are outsourced
Benefits of Outsourcing
Companies outsource their sales functions for various reasons but you may be wondering what are the major benefits of having an outsourced sales team? Outsourced sales help to improve efficiency and frees up sales teams for other company-specific tasks and strategies. Some of the many benefits of outsourcing sales efforts include:
- Maximizing Human Resource – For smaller companies there may be persons covering multiple roles in order to achieve their sales goals. In startups, it is not uncommon to see business owners doing cold-calling, for example. This is an inefficient use of resources that could be used on more strategic elements such as business planning instead of time-consuming sales tasks.
- Cost – Having a fully staffed, high-performing team can become very costly very quickly. Costs for full-time staff inclusive of salaries, benefits, not to mention onboarding and training costs as well as turnover can become very costly very quickly.
- Experience and Expertise – You may have a great sales team that specializes in lead generation but may not be as efficient in closing the deal and upselling. Outsourcing that function would assist in conversion without having to spend precious time on retraining. Outsourcing would allow your team members to focus on delivering on their strengths while the outsourced agency would have a dedicated team to ensure the other areas are efficiently and effectively covered.
- Technology – Technology is constantly changing. There are always and faster, more efficient ways to complete a task. Sometimes even deciding which are the best sales tools and strategies to suit your business may be a challenge. If you are not a professional in a particular field, keeping up with technological advances may prove difficult especially if it is not your core business. Social media, data-driven lead targeting, or marketing automation are all technologies, for example, that are constantly evolving. An effective outsourced sales team would be constantly utilizing and reviewing relevant technologies to constantly improve on the services they provide. This may not be feasible for an in-house sales team. If this is not a company’s core business it may become costly to constantly stay up to date with ever-changing technological trends.
- Speed To Market – Once a company decides to outsource some or all of its sales functions they get to tap into an efficient, knowledgeable salesforce to execute tasks. This would save tons of time and trial and error of having an in-house sales team train, practice, and figure out what needs to be done especially if they are working with new software or technologies they have not used before.
- Maintain Skill Set Level of Sales Team – When an employee leaves an organization all their institutional knowledge and experience leave with them. A company is now faced with the need to retrain a new employee all over again on the business as well as sales process and technologies utilized. With outsourced sales, a company would no longer have to bear this burden.
- Specialization of Resources – Almost 54% of all companies uses third-party support teams to connect with customers. Similar to the overall organization, every sales team has its strengths and weaknesses. Outsourcing services can allow your to team to focus on their strengths and what they do best while the outsourced team executes on their specialized skills thus building and improving upon efficiencies.
Is Outsourcing The Solution?
As with all functional team structures outsourcing sales is not a one size fits all solution. There are important things to consider before outsourcing sales, including familiarity with the business industry, products, and services as well as the sales process. This may not always be the case. In fact, there are several instances where an outsourced sales team may not be the best fit such as:
- Operational Costs – for SMEs and B2C whose income may be less than the larger B2Bs, outsourcing a sales team or even maintaining both in-house and outsourced may not be financially feasible. Additionally, companies that have never outsourced sales before tend to believe it would be too costly a business expense. It must be noted, however, that the cost of having an in-house sales team can quickly surpass outsourcing in some cases due to hidden costs of training, software, hardware, and of course in addition to salaries and benefits.
- Short Sales Cycle – if a business has a short sales cycle it may be more prudent to utilize in-house staff.
- Quantity vs Quality – For some businesses the focus is on reaching a large number of clients without having specified target personas. In this case, instead of targeted lead generation sales strategies, broader mass advertising strategies would be more effective.
Moving Forward With Outsourced Salespeople
Running a business takes a lot of systems working together to function effectively and generate income. In order to execute these processes, it is necessary to have the right team to effectively and efficiently perform duties in the best interest of the company. While doing it all on your own with in-house team is applaudable and desirous, sometimes it can be a mammoth task to take on which may be to the detriment of your business. By having outsourced sales management for some if not all of your sales systems can significantly improve upon efficiency and optimize business functions.
Drop us a line at Prime Marketing Experts to discuss the best Outsourced Sales solution for your business and how we can take you sales process to the next level.