By Neil Smith
Jumping on the insides sales bandwagon is a big strategic business decision for any organization. Companies of all sizes, and for such varied reasons as ramping up sales, lowering deployment costs, limited availability of management bandwidth or a management team with no sales competency, are looking at inside sales (especially outsourced inside sales). Ultimately your decision to move towards inside sales should be derived out of the needs of your potential customer base. To help you with your decision our team here at AAyuja has put together a small list of reasons to consider inside sales.
- Growth rate – The role of inside sales within companies has grown in the past few years. A Pacific Crest SaaS survey highlights the same as shown below. The same pattern is observed across industries and not limited to SaaS. Try and shift with your shifting market!
More data on inside sales growth rates is available as part of our “Inside Sales Factsheet” Available here.
- Speed – A quick response to an active demand is a must in today’s world. Your marketing team is hard at work trying to bring in leads. A December, 2013 study by marketingcharts.com highlights that your chances of qualifying a lead increase by 30% if contacted within 5 seconds. Wait > 30 minutes and you are 13% less likely to qualify a new lead.
- Changing buyer behavior – Your buyers now have less and less time and inclination to engage with your field reps. More often than not now buying is a multi stage multi location decision. A recent SBI research indicated that as much as 80% buyers preferred a virtual account manager. You can embrace this change by transitioning to inside sales.
- Lower customer acquisition costs – In B2B sales CAC (customer acquisition costs) plays a major role. A study by matrix partners presents an interesting insight on the same.
Field sales isn’t recommended until CAC is around $25K! Expensive field resources drive up CAC. Inside sales reduces CAC.
- Decreased ramp up times – Reps are hired and with minimal training expected to perform. Managers don’t have time to spend with their reps and the ramp up time is a real killer. Inside sales increases execution and field adoption. The ramp up to delivery time is shortened because training, process improvements and performance monitoring are easy to deliver on a daily basis. Thus you are able to get results faster from new hires.
Remember your customers are prime indictors of a market shift. Any decisions you take for reorganization should be based on their inputs! Feel free to leave your thoughts with us via comments below.