Currently, almost all salespeople are selling remotely due to the pandemic. But, as we look forward to a more normal world, which model will businesses adopt, inside sales vs outside sales?
This blog will break down the difference between inside and outside sales so that you can build the sales system and sales team that works best for you.
So let’s get started!
The primary distinctions between inside and outside sales are deal sizes, sales team costs, interactions between sales representatives and prospects, and the types of prospects your representatives will be dealing with.
Inside sales representatives work remotely, which provides benefits such as increased organisation, automation, scalability, and location flexibility. Outside sales deals with in-person meetings and representatives are more expensive, but they can create deeper connections with prospects and help close larger, enterprise-level deals.
Some of the most successful sales organisations use both inside sales and outside sales to great effect, with inside sales frequently serving as a “support.”
Let’s take a closer look at what inside sales and outside sales are, as well as the benefits of each.
What is Inside Sales?
Inside sales is the process of selling your product or service over the phone, email, video conferencing, text messages, and so on. You do not meet with the client in person. This method is critical in B2B sales, particularly in the technology industries. Inside sales representatives typically sell their product or service from their office or, more recently, from the comfort of their own homes.
Benefits of Inside sales.
A smooth sales process
Because the process of courting potential buyers is streamlined and the stakes of an individual sale are lower, inside sales have a shorter sales cycle than outside sales.
improved customer access
Inside sales allow your team to be available whenever it is most convenient for your customer’s schedule.
decreased cost-per-contact
Because inside sales representatives pursue leads via phone, email, or another form of electronic communication, the investment per individual contact is minimal. This also allows for a more significant number of potential contacts per day.
Next, we have Outside sales.
What is outside sales?
Outside sales, also known as field sales, involves travelling to meet prospects and customers in person to sell products or services. These representatives meet their leads in various settings, including travel to the lead’s location and attendance at conferences.
Outside sales was the more traditional sales model before the rise of technology, and it is still widely used today because it results in higher deal values.
Benefits of outside sales
Better relationships
Outside sales teams can build stronger relationships with customers and encourage greater loyalty from them because they have face-to-face interactions with them.
Close rates are higher
Outside sellers have a higher close rate than their counterparts on the inside. This is doubly advantageous because outside sales usually lead to bigger deals!
Easier to motivate representatives
Finally, it is usually easier to motivate outside sales representatives than to motivate internal ones. Why? Because almost all outside sales teams are compensated on a commission basis. When money is at stake, most people will work harder. However, when inside salespeople are only paid annually, they don’t have as much incentive to go above and beyond the call of duty.
Key differences between inside and outside sales are as follows:
- Inside sales representatives almost always interact with clients remotely, as opposed to outside sales representatives, who can work face-to-face or use a combination of both.
- Inside sales representatives can contact a more significant number of leads in the same amount of time, but they may have lower closing rates at times
- Outside sales representatives have higher operating costs due to the need for transportation and lodging, but they also frequently earn higher salaries.
- Because they are more likely to be from first-time customers, sales orders placed by inside sales representatives are typically smaller than those placed by outside sales representatives.
- Outside sales representatives have higher operating costs because they must travel and stay in hotels when necessary, but they also frequently earn higher salaries.
Conclusion
Inside sales and outside sales are both important. However, the difference between the two sales strategies is shrinking in recent years.
