Sales outsourcing should be a part of every sales leader playbook. Companies can attract high volumes of sales for their products or services using a third party. In this article, learn how to grow your revenue number by outsourcing a portion of your sales efforts. If done correctly, sales outsourcing can quickly ramp up revenue.
- Evaluating fit between market segmentation and outsourcing
- What sales plan needs can outsourcing satisfy?
- Trends increasing the rate of sales outsourcing
- Objectives of sales outsourcing projects
- An A-Z look at Inside Sales Solutions services
- How to evaluate the framework of outsourcing a sales function
Evaluating fit between market segmentation and outsourcing
Traditionally, when people think of outsourcing, they think of low-value, off-shoring such as people answering the phone resolving billing issues. They don’t think of it as a core function of their sales strategy. Outsourcing is an acquired capability. The right outsourced sales partner is a value-add, not necessarily a low-cost solution. Depending on the sales strategy, outsourcing can work in virtually any market.
The right partner will help you determine if your product or service fits in the specific market, if there is a dominant competitor, what are the pains that the potential buyers are experiencing, as well as, report on existing solutions they are using to ease their pain. They will help with realigning the existing value proposition to the market specifics by gathering intelligence from your ideal customer profile.
Market learnings are some of the most valuable things a sales outsourcing team can bring you. Knowing what your potential buyers actually think about your product, your competitors, and their own needs will help you better position your solution and generate more revenue.
What 2019 sales plan needs can outsourcing satisfy?
Bringing in a sales development team can have substantial benefits to your organization. Some factors that sales outsourcing can satisfy are:
1. Speed to Market:
Whether you want to drive a new product to market, reactivate a group of dormant customers, or you’ve just received an influx of capital for growth of sales, the right sales outsourcing partner can launch an outbound sales development campaign in as little as a couple of days.
2. Scaling a Workforce:
Outsourcing sales can help a company scale a workforce up or down quickly without the risk and ramp-up time it takes internally. It gives leadership teams options that they may not have had prior to considering outsourcing.
If you are after a new market or a new service, dealing with a lot of legacy issues as related to personnel and human capital can slow down the time it takes to go to market. Outsourcing’s inherent flexibility enables companies to pilot new approaches and execute quickly.
On average, sales people have 20-30 things they are responsible for in a day. The 80/20 rule applies to what they will focus on the most. When we talk to sales leaders, one of the biggest challenges is getting the team to focus on new initiatives. For them, it’s a totally new way to think. Salespeople can’t transition as quickly as you think they can. With the right outsource partner, you can take out external and sometimes corporate noise outside of the equation and are able to focus on this initiative to the fullest.
When you team up with the right partner, you get access to systems, tools, technologies, and processes. A good partner is going to have a suite of sales enablement technology that is pre-built and ready to go that they can adapt in days and weeks, not in months and years.
You have to look at the cost of the service. You also have to look at the revenue and return. Looking at it the right way is to truly understand what the full cost that are associated with running a sales organization, especially the opportunity cost. Sales outsourcing can be a cost-attractive option that generates a great return. Think of it this way, if you are launching a new product and have to stand up a team immediately, they might ignore it, meanwhile, you spend X amount on R&D. That is the opportunity cost of not leveraging the capabilities an outsourced partner can bring you.
Trends increasing the rate of outsourcing
There is a shift in the marketplace that has triggered an accelerated rate of adoption of outsourced sales. It is a more viable option today than ever before. So what trends are underway over the next couple of years that are causing companies to outsource a portion of their sales?
Brand /Customer Experience:
How prospects are getting information today is changing. Customer Experience (CX) is the new Sales and Marketing. The right partner will help with seamless customer transition from marketing, to sales, to contract renewals and ensure that the right brand experience is represented.
There are new tools that are coming out all the time. The right partner that lives in that space can help them do that. From a CRM to sales enablement, there is a new app, new plugin coming out every day or more than once a day. Companies are looking to inquire about they can leverage those to sell more, faster, and better. The right partner can help them do that.
The economy is improving. What does that mean for business? Hopefully that they will sell a lot more, and the job market is going to improve. What that means for B2B sales leaders is that the market for talent is going to get more difficult over the next 2-3 years. What is the secret to a successful sales team? Top-grade your sales team. Acquiring and keeping that talent is going to be a challenge that will impact the marketplace today and in the future. This trend will push companies to search for the reliable workforce they are able to acquire through outsourcing.
Objectives of sales outsourcing projects
In a corporate world, a CEO will say, “these are our revenue and profit goals”. The leadership team will then translate the revenue goals to sales goals and territories. So, what objectives should a company aim for when they are looking to outsource a sales project?
When you are looking at sales and outsourcing, you tend to look at cost. In reality, sales is all about getting the best return on your sales investment. Typically, there are two hard objectives that companies look to satisfy when they are looking at outsourcing sales enablement. How are we going to effectively create an experience that will:
- Increase Customer Lifetime Value (LTV)
- Reduce Customer Acquisition Cost (CAC)
These are the primary objectives that the C-Suite is concerned with. If it is not, it should be.
Lastly, here is a third soft objective, but equally as important: creating the right brand experience for the customer. How you are creating the experience that the B2B customer is looking for and representing the company’s brand in a way that they can feel comfortable is something that the right partner will be able to help with and even improve.
An A to Z look at Inside Sales Solutions
Inside Sales Solutions is a revenue growth agency dedicated to helping B2B technology sales and marketing teams engage, qualify, and convert more leads into sales opportunities. With 100% US-based team, we help companies sell more, faster, and better. We design, develop, recruit, hire, train, deploy and manage sales, marketing, and channel enablement organizations across the entire B2B engagement life-cycle.
If I partner with Inside Sales Solutions, how are contracts priced?
Inside Sales Solutions operates on a performance-based philosophy. This includes a fixed and a variable component. How exactly is that structured?
Fixed component: this will cover salary, benefits, 401K, and more. A lot of companies know all the cost associated with running a sales team – facilities, rent, IT infrastructure and support systems. For instance, our fixed cost includes a suite of value-added services including business intelligence, reporting, analytics, sales process design, continuous improvement, and innovation activities.
Variable component: this is based on the productivity objectives that we agree with our partners we will be responsible for hitting. If we hit your quota, we earn the variable compensation. We don’t? You don’t pay that incentive.
The ratio can vary widely. This depends on the sales solution, market variables, the complexity of the sales cycle, and sales difficulty. Very similar to how you would pay an internal sales organization.
If I partner with Inside Sales Solutions, who provides the leads?
Are Inside Sales Solutions responsible for generating the leads needed to meet sales objectives or is the partner? The answer is yes to both. This depends on the business challenge that we are tasked at solving. Which part of the customer engagement life-cycle do we need to see improved results in?
If our goal is to generate net-new accounts, Inside Sales Solutions works with a proprietary database to perform outbound activities and leverage data that our partners may not have access to.
If our goal is to ensure that our clients make the most of dormant leads or leads collected through event marketing, we work of off specific target lists provided by our partners.
How is reporting done?
How Inside Sales Solutions reports results is how the customer wants to see the results delivered to them. As a partner, you are granted 24/7 access to a proprietary Customer Success Portal to view all of your active and past campaigns. We deliver information in a very focused way. Hence, this allows for better visibility into, not only each activity that we are doing as a paid partner but also where there may be hiccups with internal processes.
How to evaluate the framework of outsourcing a sales function
If you have read this far in the article, you are probably curious how can a sales leader estimate the revenue opportunity by outsourcing a piece of his or her sales team? There are really two ways to calculate this:
- You have to look at what is the customer acquisition cost (CAC) and what is the customer lifetime value (LTV). You have to understand those two factors. Ultimately, whatever revenue is generated, is going to be tied back to those metrics.
- The second thing you have to look at is the opportunity cost. For instance, when sales leaders evaluate the framework of outsourcing a sales function, the opportunity cost is the hidden factor that most don’t think about.
A good outsourced partner is going to enable your sales team and all of the associated resources that go into supporting the sales team. That way, you can better spend your time doing other things that are more effective, that are going to generate a level of potential revenue, or cost savings. We like to refer to this as the opportunity cost.