Why outsource sales teams in a virtual world?
Is your company ready to take the next step? If you want to expand, reach new markets, and become more efficient, outsourcing sales teams can provide you with an opportunity to breathe new life into your company.
Sales outsourcing, according to Deloitte’s Global Outsourcing Survey 2020, can help a firm become more efficient while also causing positive disruption by “incorporating emerging technologies to generate innovation, speed to market, improve user experience, and enhance performance.”
In today’s times, scalability, speed, and focus are critical. Sales outsourcing is a proven way for businesses to quickly and effectively drive revenue. It allows companies to capitalise on untapped opportunities by leveraging skilled salespeople and other experts. Working with forward-thinking partners and experts also will enable organisations to capitalise on the latest outsourcing technologies.
So, without further ado, here are the top 7 reasons to outsource sales teams in the virtual world:
#1: You have no clear sales strategy
- Inbound lead generation or outbound cold calling?
- What is the best sales play for each step in the process?
- Should we approach the decision maker first or start with an influencer?
- Which virtual selling sequence works best?
For early-stage startup’s these questions can be tough to answer at the beginning. First and foremost, the startup needs to find the ideal pattern of sales for their business that can be effectively repeated many times.
That’s where outsourcing sales teams can be a massive game-changer. Businesses can outsource to expert sales teams who have expertise in setting up processes and sales channels. It gives startups the agility they crave.
They can change course quickly without the fixed cost associated with having their own sales teams. It allows businesses to experiment with various sales strategies until they find the right solution for their sales needs.
#2: Unfamiliar markets and a lack of local expertise
Getting to know a new market can take time and resources that your company may not have right now. And finding a sales team that understands the culture and can work rapidly to build relationships isn’t always as simple as it sounds.
Each market has its own ‘rules’, advantages and disadvantages. For example, if your main strategy is to reach out via LinkedIn, then Germany might not be a great first choice. As many German people use Xing instead of LinkedIn (only 15% of the working population has a LinkedIn profile).
Many startups choose to target a country based on what everybody else does, playing “safe” (with more competition).
Another reason is the language. If the sales manager doesn’t speak France, why should you hire a French speaking salesperson to target France?
By outsourcing the sales team you take on less risk because they understand the country’s business landscape.
#3: Lack of sales infrastructure
Investing in infrastructure for startups can be a significant drain on resources. Infrastructure is a long-term cost with significantly less return on investment, to begin with. But it is also an obligatory requirement because, without infrastructures like a sales automation, CRM, sales intelligence tools and other software such as Vidyard, you will miss out to grow your business rapidly.
So, what’s the solution if you don’t want to invest heavily in infrastructure?
The outsourcing team will provide these tools and leverage best practices to implement them at a fraction of the cost of launching them.
The outsourced sales team’s have availability and expertise in using these tools to boost your business. Especially when you are starting and want to mitigate the risk of investing in an infrastructure outsourced sales team is the best way to move ahead.
#4: Slow ramp up time
It takes time before your new hires actually start selling, especially if it’s your first salesperson and you have no clear sales playbook.
Salespeople want to prepare themselves properly before engaging with prospects (sometimes just an excuse to delay the ‘real work’):
- Create email templates (because they love to copy paste)
- Create a pitch (which will probably change every week in the first few months)
- Build a network on LinkedIn, and show some activity
- Get to know your solution in depth
- Research prospects, finding contact details
So it can happen that the first 3 months, your salesperson is just warming up. Only after that the selling starts.
When you outsource, there is a much faster ramp up time. The salesperson leverages from our best practices, teamwork and efficient workflows.
#5: No prior sales experience in the company
Many tech startups are started by founders with no natural sales skills and closing abilities. Often, they are great techies and geeks but have never built, managed, or led a sales team.
A sales outsourcing team provides this expertise.
Leveraging a sales outsourcing team allows a company to draw on best practices and lessons learned from a partner’s vast experience with other clients across multiple industries, which is extremely useful for picking up new ideas and sales techniques. It’s also an excellent way for sales leaders to add bench strength with reps who hone their skills.
Check out our video prospecting playbook to see some excellent virtual selling plays.
#6: No time for coaching and keeping a salesperson happy
When you are dealing with multiple plots and sub-plots giving dedicated time to your sales team, coaching them and keeping them happy can be a considerable challenge in an early-stage startup. With limited bandwidth, often business owners struggle with this part of the deal. The outcome? Sales team become demotivated and leave at the first chance they get.
Outsourced sales team’s on the other hand, are experts who need minimal guidance from you. The cost of coaching, training and onboarding are all saved. Moreover, it frees your time so that you can focus on other critical parts of your business.
#7: Reduce fixed costs by up to 80%
Due to the current market’s volatility, it is more important than ever for firms to spend resources intelligently. If there is a safer and less expensive alternative, no firm wants to take the unwarranted risk. This is precisely what outsourcing your sales staff accomplishes. It reduces costs such as onboarding, training/coaching, software and recruiting.
According to research, outsourcing your sales function can save up to 80% of fixed costs than hiring an in-house sales team. Plus, outsourcing gives you more flexibility.
Just to give an example:
Let’s say you hired a new salesperson. You learned him all the ins and outs of your solution, he did a lot of homework by creating his own pitch/sales assets and after a few months he is finally ready to sell.
But then you see he just doesn’t have the skills to reach the desired targets – especially if there isn’t any training and coaching involved.
If you fire him, you ‘wasted’ a lot of time, money and energy – just to start all over again with the next one.
When you outsource:
- The ramp up time is faster (weeks instead of months)
- You can choose to hire part-time instead of full-time
- Responsibility and time is invested mostly by outsourcing partner
Sales outsourcing is a proven solution for firms to swiftly and successfully grow revenue at a time when scalability, speed, and focus are vital. By leveraging skilled sales associates of the outsourced sales teams, firms can capitalise on previously unexplored prospects. Working with forward-thinking outsourced sales partners helps businesses to take advantage of the most cutting-edge technologies.
Experienced outsourced sales teams optimise resources, provide time savings that allow you to focus on other aspects of your business, have low training costs, a more efficient and faster sales cycle, fewer onboarding challenges, and, most importantly, expert customer handling that leads to higher conversion rates. Thus, the outsourced sales team produces a win-win situation that your business must embrace in order to take the next big leap of growth.