Are you unsure which sales team to focus on to drive your business’s sales? B2B Inside sales? Or Outside sales?
Well, deciding between inside sales and outside sales can be tricky for businesses. Both sales strategies share the same goal of generating revenue, but their approaches are distinct.
To simplify the decision-making process, we’ll explain the difference between B2B inside sales and outside sales in this blog. We’ll also include an overview of each sales model and discuss the pros and cons associated with each.
So, read on to discover which sales strategy is the most suitable for your company’s growth.
What is Inside Sales?
To put it simply-
B2B inside sales involves selling remotely to other businesses through online or telecommunication methods, with sales teams working from a remote location such as an office or home.
Its popularity has increased due to factors such as lower costs and a growing reliance on digital solutions. This reliance on digital solutions allows for more structured processes, less travel for inside sales reps, and easier organization compared to outside sales teams. An additional advantage of inside sales is the data which can be analyzed to improve the sales process. Sales reports enable sale reps to improve there sales techniques with time.
B2B Inside Sales team commonly uses various communication channels, including phone calls, email, video conferencing, CRM tools such as Hubspot, CLose, ect and social media.
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What are the Pros of Inside Sales?
The rising popularity of inside B2B sales can be attributed to various pros. Let’s take a look at some of the most popular pros in detail:
- Easy to Manage – Inside sales teams are much easier to organize, with more structured processes, and tasks such as scheduling meetings and taking discovery calls can be conducted entirely remotely.
- Reduced Expense – Inside sales have lower implementation costs as sales reps do not have to travel, resulting in reduced expenses. Furthermore, inside sales reps tend to earn lower salaries and bonuses, making them an excellent cost-effective solution for businesses on tight budgets.
- Shorter Sales Funnel – Inside sales provide a shorter sales funnel, which can speed up the customer journey. Also, it allows for the automation of tedious tasks, such as data entry and lead tracking. This frees up sales reps to focus on what they do best – closing deals.
- Flexibility – Inside sales offer unmatched flexibility, as sales reps can work from anywhere in the world. The absence of physical barriers, such as travel, allows sales reps to connect with potential customers efficiently. This means that the sales cycle can be conducted seamlessly, from initial contact to closing the deal, without any inconvenience.
- Scalability – Inside sales allow businesses to expand their sales operations with ease. Hiring sales talent from anywhere in the world is easier and more affordable with inside sales, as the process can be conducted remotely. This means that companies can scale up their sales operations quickly and cost-effectively, without being limited by geographic boundaries.
What are the Cons of Inside Sales?
While B2B inside sales offer many advantages, there are some potential drawbacks that businesses should consider.
- Lack of trust – It can be challenging to establish trust and credibility with potential customers as there are no face-to-face interactions. This is particularly important for high-value or expensive investments, where decision-makers may need personal interactions to determine if they are investing in the right organization.
- Tough Competition – With a multitude of companies flooding prospects with calls and emails, standing out from the crowd can be a daunting task for inside sales representatives.
- Higher Rate of Rejection – As sales reps are unable to read verbal and nonverbal cues in phone or email conversations, the rate of rejection is high.
What is B2B Inside Sales Best Suited For?
B2B inside sales can be a valuable approach for many scenarios.
Its lower costs and greater flexibility make it an amazing option for smaller organizations, start-ups, and those that function in the digital landscape. For example, SaaS companies and digital agencies.
When inside sales teams focus more on inbound marketing and lead generation strategies, they can efficiently manage an increasing number of leads and close deals in no time than outside sales teams.
However, building trust with prospects can be challenging due to the lack of personal interaction, making inside sales more suitable for selling lower-priced solutions.
Ultimately, the decision to use inside sales will depend on factors such as the type of product/service offered, budget, and business goals.
What is B2B Outside Sales?
Outside sales, also known as field sales, involves traveling to meet with customers. It provides a personalized sales experience for both current and potential customers.
In-person meetings and face-to-face interactions allow sales executives to offer elaborated product demonstrations and develop personal connections with clients.
Outside sales executives are responsible for establishing a connection with potential clients, showcasing the features and benefits of their product or service, addressing concerns and objections, and engaging in negotiations – all in a face-to-face setting.
What Are The Pros of Outside Sales?
Outside sales, although less innovative compared to inside sales, still have their significance in the sales industry. It offers numerous benefits to businesses.
- Personal Connections– One of the primary positives of outside sales is the opportunity to establish stronger relationships with customers through in-person interactions. This can develop trust and loyalty. Also, face-to-face meetings allow businesses to gain a better understanding of their customer’s needs and offer customized solutions.
- Personalized Demos– Live product demos through face-to-face interactions are a key benefit of outside sales, resulting in more informed purchasing decisions and higher closing rates.
- Market Insights– When it comes to gaining valuable market insights, nothing beats the power of face-to-face interactions with customers through outside sales. By engaging with customers directly, businesses can gain a deeper understanding of their preferences and interests, and use that knowledge to tailor their marketing efforts more effectively.
- Lower Tech Demand– Outside sales teams don’t require as much tech upkeep as inside sales teams. Although it’s still crucial to stay up-to-date with technology, outside sales teams can be more flexible in this aspect. This doesn’t mean that digital and tech-based solutions won’t benefit outside sales teams, as they definitely will.
What Are The Cons of Outside Sales?
Similar to inside sales, B2B outside sales also have some potential drawbacks to keep in mind.
- Higher Cost– Outside sales teams often come with higher operating costs compared to inside sales teams due to factors such as larger bonuses, higher salaries, and travel expenses for each sales representative.
- Less Flexibility– With outside sales, there’s less flexibility compared to inside sales. Sales reps need to work around their prospects’ schedules, which means that in-person meetings require more commitment and planning. Meetings can also be costly and may require travel, including across-country flights and strictly scheduled dates that are set weeks or months in advance
- Longer Process– Outside sales typically involve a longer sales cycle. This is because the sales process often requires more face-to-face meetings with top-level decision-makers, which can take longer to arrange and execute. Apart from this, outside sales often include selling high-ticket items or services, which can require a more consultative and personalized approach.
- Limited Geographic Reach: Unlike inside sales, where reps can target prospects all over the world, outside sales are restricted to a specific geographic location that the reps can feasibly travel to. This can be a challenge for businesses that are looking to expand their reach beyond their local region.
What is B2B Outside Sales Best Suited For?
B2B outside sales is a powerful approach for businesses targeting high-level decision-makers and enterprise-level clients. This approach is effective for selling higher ticket items that require in-person meetings, building relationships, and establishing trust.
However, outside sales teams come with higher costs such as salaries, bonuses, and travel expenses. Therefore, this approach may be ideal for companies with larger budgets.
It is important to weigh the costs and benefits of outside sales to determine if it is the right fit for your business.
B2B Inside Sales vs B2B Outside Sales: Finding the Perfect Blend for Sales Success
Sales are the soul of any thriving business and the decision for choosing between inside sales and outside sales can really make or break your organization’s success.
While both types of selling have many similarities, they differ significantly in many areas that need to be considered when designing your sales strategy.
Inside sales teams operate remotely, enabling organizations to achieve greater efficiency, scalability, automation, and location flexibility. On the other hand, outside sales teams prioritize in-person interactions with prospects, establishing deeper connections and closing larger, enterprise-level deals.
However, the most successful sales organizations recognize that leveraging both inside and outside sales approaches can be highly effective. By utilizing inside sales as a supporting function, organizations can combine the advantages of remote selling with the relationship-building capabilities of outside sales, resulting in a well-rounded and effective sales strategy.
Whether working remotely or in-person, sales reps can leverage sales engagement tools like SendBuzz to drive growth and revenue for their organization. For inside sales reps, the automation features can help streamline outreach and follow-up tasks, increasing efficiency and scalability. For the outside sales team, SendBuzz’s customizable templates and messaging tools can help them create personalized and impactful communications with prospects, leading to deeper connections and higher close rates.
Deciding between inside and outside sales depends on various factors such as the type of product/service, budget, and business goals. If you want to become successful in today’s competitive market, your sales teams should have the right tools and support. By combining the strengths of both approaches, businesses can develop an effective sales strategy to handle any sales challenge, drive growth, and generate revenue, and profitability.