Some businesses struggle to manage a sales team. So, they search for ways to improve their efficiency. Sales operations aren’t for everyone. So some business owners look for solutions elsewhere. While some go into automated platforms for lead generation or artificial intelligence (AI), others ask for help from other companies. That’s where outsourcing comes into place. In this piece, we’ll explore what sales outsourcing is and if it’s right for your business.
What Is Sales Outsourcing?
Outsourcing is hiring an external company to handle your operations. Some outsourcers can manage the whole sales process, while others might focus on areas such as lead generation, setting up appointments, customer relationship management, etc.
The goal of sales outsourcing is to improve efficiency while reducing costs. This is done by leveraging the experience of the external provider and cutting on staff and management.
Why Do Companies Outsource?
Outsourcing is a great way for companies to reduce costs and save up on resources while at the same time improving and accelerating their growth. Let’s examine some main reasons companies choose outsourced SDR services (Sales Development Representatives):
- Reducing costs
- Gain access to international resources
- Reduce internal-resource usage
- Improve company focus
- Accelerate company growth
How Does Sales Outsourcing Work?
As we mentioned, a company can outsource its entire sales team or parts to handle different areas. Some businesses might need particular sales expertise for a specific product line. Others might want to help with an entry strategy to boost their initial traffic.
Usually, the sales outsourcers get compensated based on results. This can range from the number of closed sales and generated revenue to generated leads and other metrics.
Advantages and Disadvantages of Sales Outsourcing
Outsourcing isn’t the right approach for every business. Some CEOs suggest that startups rely on their founders, using their marketing strategies, until they have enough funds to hire a whole team.
The most crucial thing in outsourcing is to have good enough customer management that the buyers don’t realize the salesperson working with them is from a third party.
If you’re wondering if outsourcing is the right choice for you, here are some pros and cons of sales outsourcing:
Pros:
- Sales outsourcing can increase revenue while keeping costs low.
- If you’re operating in a dynamic market, sales outsourcing is a good way of using different approaches without firing and hiring new staff.
- Most outsourcing companies don’t require a base salary. Most commonly, they get paid depending on their performance.
Cons:
- There are reputational risks in allowing a third party to handle your sales operations.
- You’ll need time to build a good relationship between your company and the sales outsourcers.
- There could be more upfront or one-time costs, such as commissions, salary, hiring costs, etc.
Is Sales Outsourcing Right for You?
Some businesses are skeptical when it comes to sales outsourcing. Not all sales agencies provide equally good services. Not all representatives will be experienced in your market.
To better understand your needs, you should look at your process and decide whether it’s a good strategy. Let’s look at some factors you need to consider before contacting a sales outsourcing company.
Do You Have the Resources to Achieve Your Goals?
If you already have a sales team, check if they’re hitting their target metrics and quotas. If you see your representatives struggling, consider outsourcers as an efficient way to hit your targets.
Are You Able to Give Up Control?
It’s natural to feel the urge to handle all business functions internally, overseeing everything. Trusting others to handle the work can be challenging. With outsourced sales, you won’t have the same level of control over every aspect as you’d with an internal approach.
Yet, as a sales manager, it’s essential to recognize that many outcomes are beyond your control, regardless of your approach. You won’t be closely involved with or constantly monitoring every activity your internal representatives are engaged in.
Analyze Your Business Needs
Before hiring an external sales team, you must check your business’s strategic requirements and objectives. This assessment should consider various factors. These include your present volume, target market, growth aspirations, and budget.
How Will Sales Outsourcing Affect Your Company Culture?
Outsourcing certain aspects of your marketing cycle to a third party may seem appealing in theory. Yet, the actual implementation can present unique challenges. Existing employees may perceive this move as a potential replacement, leading to concerns about their job performance and the future security of their positions. This situation could result in a decline in employee morale and motivation.
Furthermore, if the division of responsibilities between the in-house and outsourced teams is not adequately communicated from the outset. This could lead to confusion regarding task ownership and accountability for results.
How To Make Sales Outsourcing the Right Way?
Let’s say you’ve decided to use an outsourcing company. Now you might be wondering how to outsource your sales without failing. Below we have listed two main points that’ll help you in your journey.
Manage Your Expectations
Engaging in an open and honest discussion about your expectations is crucial. This discussion should cover various aspects, including your target markets, lead qualification process, desired return on investment (ROI), and workflow management. A reputable partner will prioritize ensuring that both parties’ objectives are aligned before moving forward.
Granting some autonomy in sales processes is essential for testing and optimizing strategies. Yet, you should retain the final say in how your brand is represented in marketing campaigns. Consider the outsourced salespeople as ambassadors who promote your brand in the target markets. The goal should be raising awareness and demand for your products or services.
While guaranteeing specific lead generation results can be challenging. Both you and the outsourced team should assess the product-market fit within your target audience. This evaluation will let you set realistic goals and measure success throughout the partnership.
Focus on Sales Outsourcers Who Have Expertise in Your Industry
You’ll come across many outsourced sales companies boasting their versatility, showcasing an array of client logos from fashion to cutting-edge technology and beyond.
It becomes challenging to rely on a generalized partner to possess the specific skills required to successfully introduce your product into a new market or expand your presence in a fiercely competitive landscape.
In order to mitigate uncertainties in your go-to-market strategy and optimize returns on your investment, it’s advisable to seek an outsourced business specializing in your industry.
Conclusion
Outsourcing is an excellent way to boost your metrics while keeping costs and management efforts low. Knowing how to implement a third party into your business effectively is essential. Plus, choosing the correct provider for your current company’s needs is also vital.
Be sure to analyze your business and see where to improve to hire the best sales representatives for your specific case.
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