Similarities and Differences between Inside and Outside Sales

Differences between Inside and Outside Sales
Differences between Inside and Outside Sales

A study says that 90% of the employees feel more confident when talking to the customers over a call than meeting in person. That’s the debate about inside sales vs outside sales.

Both carry some standard advantages and disadvantages in terms of increasing sales. But a blend of both the inside and outside sales strategies can help you improve your scale of operations.

The primary difference is inside sales require a digital platform to interact with a customer, and the rep doesn’t have to meet the clients in person. But in outside sales, the sales rep has to travel, visit the client in person, and promote the product/service.

Let’s study and compare the functioning of inside and outside sales.

Method of Business

In inside sales, the sales rep makes use of web conferencing, tele-calling, and email marketing to interact or target the customers. The other strategies involve hosted CRM, integrated calling tools, social media, and screen shares. All this is performed in a cubicle; there is no requirement of meeting the client in person.

Whereas, outside sales involve extensive traveling, and promoting the services with a presentation, providing samples, or displaying them. In most cases, if visual infographics accompany the outside sales tactics, the chances of sales increase by 71%. According to HubSpot, the visual representation of the products/services process 60,000 times faster than text or a call.

Use of Technology

Inside sales have options for numerous software programs that monitor every sales rep’s performance and point out the areas that need improvement. Since it is carried out remotely, they don’t have the opportunity to meet the clients. Also, CRM software helps in managing their performance and improving the sales cycle.

In outside sales, the reps must visit the clients in person. If CRM is not the leading technology to track their performance, it isn’t easy to analyze how the sales reps perform. The only option to monitor progress in outside sales is the outcome. If a transaction takes place and you realize profits, then outside sale is giving results.

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Cost-effectiveness

Inside sales vs. outside sales, which is more cost-effective? Well, the answer is inside sales. It makes use of blended technology, which includes CRM database, analytics software, AI and machine learning, and web conferencing platforms. The cost of incorporating such technology is inexpensive and reasonable.

Outside sales are costly as compared to inside sales. You have to pay traveling allowance or conveyance fees to your employees as they go on fieldwork. Their performance is tough to track unless there is a realization of profit. Also, their sales cycles are longer than inside sales because they focus on large sales. Eventually, the cost of outside sales management increases significantly.

Sales Cycles

Outside sales take a longer time to close the deal. The sales reps have to visit the client frequently before the final payment is received. It naturally lengthens the sales cycle because the closing of the transaction takes time.

But in inside sales, you can manage to track the leads and shorten the sales cycle. You know which lead is hot, which lead is asking for the time, and which lead needs constant follow up. The inside sales software helps in understanding how to plan the next sales strategy.

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