Is your sales team still working mostly on-site? That's so 2012!
While in 2012 only 12% of companies outsourced their work, more and more tech companies are deciding to outsource their B2B sales instead of having a team in-house. In fact, outsourcing is one of the big trends to look for in 2019.
Many reasons companies cite for not outsourcing their sales reps, such as losing control of the business or not being able to communicate with the remote team, are based on fear. The reality, however, is different.
Let me give you 5 reasons why fast growing companies have decided to outsource B2B sales.
Sales Development Representative (SDRs) are responsible for sourcing up to 45% of a company’s revenues. That’s the fact. Now you have two options: hire and manage SDRs in-house or outsource a sales team.
Let’s look at the time involved in hiring and training a SDR.
- A company with an in-house sales team hires 5 SDRs on average every year
- To hire those 5 SDRs they interview around 65 candidates
- On average they spend 18 hours on hiring activities per candidate (including searching for candidates, interviewing them, and hiring them)
That’s a total of 1,170 hours spent hiring sales reps. Why waste your time finding and interviewing candidates that may not have the right skills, company culture, and passion for the job?
Once you hire a sales rep, you’ll spend three months training him or her. A year later the sales rep will move on to another job or will be promoted. That means you’d have to start hiring again every year.
Wouldn’t it make more sense to outsource your sales team to a company who handles this whole process for you and finds the perfect rep for your company?
Now, hiring a sales team in-house may cost your company more than $425k per year with salaries and benefits, while working with a managed service company that provides a high-quality sales team, can cost you only $60k per year.
On top of all this, sales teams need tech tools to interact with clients and maximize revenue. When you outsource this work, you won’t need to invest in licensing and implementing these tools, as they're part of the deal.
What would you do with all that extra dough you save? Huh?
Outsourcing sales is 43% more efficient than generating leads in-house because managed service companies have more expertise. In other words, just over 5 months of working with an outside managed service for B2B sales can bring you the same results as 12 months of in-house sales work.
Take the case of Ipswitch, for example, who at one time had thousands of prospects on their website but didn’t have the manpower to interact with them. They decided to outsource their B2B Sales Chat and as a result generated over $1.2 million of closed deals and a 5.2X positive ROI on their overall spend with an outsourced sales team.
Would you like to obtain those results? I bet you would.
Let’s be honest. There’s so much we can do with an in-house team, especially if they’re overstretched in their functions. Can they manage selling on social networks, whilst making calls and be available to respond queries 24/7? Probably not.
One big reason to outsource your B2B sales is having a dedicated sales team available to reach customers around the clock through multiple channels: phone, email, live chat, social networks and whatever is required.
Live chat, for example, is a great tool that very few companies are using at the moment. Having a team there to quickly interact with leads, while they’re on your website, can definitely boost your sales. Responding within five minutes can make huge difference. According to research, there’s a 10X decrease in your chance of making contact with a prospect after a wait time of 5 minutes. With a dedicated team, you’re in a great place to succeed.
If your in-house team can take on all the above, great. However, most fast growing tech companies have many fronts to cover, which leads me to the last reason to outsource sales.
It would be great if we all had unlimited resources, knowledge and strengths. More likely, you need support in some key areas.
For instance, you may lack expertise and experience in some sales functions, such as lead generation, or lead nurturing. Or you may be introducing a new product that calls for sales skills you haven’t tried so far. Or perhaps, you're entering a new market segment or a new country, and you must adapt to a new environment fast.
What would you do? Take the long way of trial and error until you make it or fail? Or outsource your sales so you can start profiting right away?
Basketball players practice non-stop. Their head is always in the game. On the night of the game, they don’t need to worry about the set up of the stadium or the sales of the game tickets. Other businesses can do that work for them, and in doing so this promotes greater performance from the players as they can dedicate their time to practicing and improving their skills.
Similarly, an outsourced sales team can bring a whole new perspective to the table. They can help motivate your staff now that they have the complete time to work on improving your technology or software. Performance across the board will improve.
Your employees are also likely to pick up some expert tips from the outsourced sales team making your company’s sales process more efficient in the long run.
Now, it’s possible that you've never outsourced B2B sales services or you've never heard anyone do that. However, if you've read this far, I’m sure you’re ready to consider it as an alternative.