Date
April 23, 2021
Author
Sunny

Sales outsourcing guide. What for? How much?

Have you ever had the crazy idea of ​​outsourcing your sales? At first glance, this idea seems very promising: no need to painfully search for new people, spend a huge payroll, motivate and control. But, as always in any endeavor, there are some pitfalls here. In this article, we will share with you how to […]

Have you ever had the crazy idea of ​​outsourcing your sales? At first glance, this idea seems very promising: no need to painfully search for new people, spend a huge payroll, motivate and control. But, as always in any endeavor, there are some pitfalls here.

In this article, we will share with you how to effectively use the services of the outsourcing sales department, even if you do not have one, why every successful company should practice Internet marketing, what is complex sales outsourcing and why is it profitable and is it possible to have a sales outsourcing team without advance payment, just pay for the results.

Types of sales outsourcing

1. Outsourcing the initial stage of sales

A third-party company takes away the routine from you: calling a cold customer base and searching for new customers, that is, the initial stage of negotiations with a client, which can be done over the phone.

2. Outsourcing of sales in terms of the market segment

Sales in a specific area can also be outsourced. For example, if you previously sold only in France, entering the hall European market can be long and very costly. In order to somehow speed up this process, part of the sales in certain regions is outsourced to a company that is aware of the regional situation and is able to deal with your product or service. Most often, in this case, you will have to outsource the entire sale – from the stage of finding clients to closing a deal.

3. Outsourcing of certain types of products.

If the company creates and sells a sufficiently wide range of products, then it makes sense to outsource the sales part of the products to a third party. In this case, we use outsourcing for the sale of those products that do not have specific characteristics and are constantly in demand. Thus, it is possible to save the in-house sales department from “small” orders without fear of losing customers interested in more expensive and specific products.

When do you need a remote sales team?

Not every company can afford a regular sales force. First, its maintenance on an ongoing basis is quite expensive. Secondly, you need to have a competent approach for its creation and correctly train employees, otherwise, there will be no sense in their work. Thirdly, depending on the specifics of the activity, the company may not have a need for a constant search for new contacts, since the priority is to work with regular customers.

The ideal solution in such a situation is the services of a remote sales department. You can create such a department yourself or outsource it. Even in the first case, you will significantly save on office rent, bookkeeping and taxes, since employees of such a department are usually not part of the company staff. It can be cheaper than outsourcing sales, but if you do not have the appropriate experience and trained employees, the effectiveness of such work can be minimal.

A remote sales department may be needed in the following cases:

◼️ when there is a likelihood of a significant increase in the number of final sales by methods of television and Internet marketing;

◼️ if you need a fully functional replacement of the regular sales department;

◼️ when the company is young and just entering the market;

◼️ in the case of promoting a new product or service;

◼️ if there is no qualification and desire to train their own “salespeople”;

◼️ when a sales department is needed on a small line – several weeks or months;

◼️ if it is necessary to update and increase the customer base ;

◼️ when you need to save on the maintenance of an internal sales department (reduce sales costs);

◼️ if you need to strengthen the work of existing sales managers.

The main goal of the outsourced remote sales department is to increase the number of final sales. This significantly differs from the telemarketing department or contact center, which only carries out cold calls in order to increase the client base or maintain contact with potential customers through other communication channels (mail requests, e-mail newsletters, Internet chats, social networks, feedback forms on sites, etc.).

A remote sales manager not only communicates through the above channels but also leads a potential client throughout the sales funnel in order to close the deal. The number of closed transactions (and, therefore, paid sales of a product or service) is one of the main indicators of the effectiveness of a remote sales department, which directly affects the revenues of the customer company.

Outsourcing sales services:

◼️ make cold calls to clients;

◼️ update the client base;

◼️ carry out customer returns;

◼️ inform clients on various issues (“live” or robotic information);

◼️ invite clients to events;

◼️ make appointments;

◼️ send out commercial and promotional offers;

◼️ conduct telephone surveys and questionnaires, etc.

In general, the remote sales department is able to solve various problems – from updating the contact base to fully replacing the internal sales department and capturing a significant part of the market. To do this, qualified employees develop a specific algorithm by which they “conduct” contact through all stages of the sales funnel in order to complete the transaction. An advanced sales department has a simpler and more efficient structure than a traditional call center, due to the removal of unnecessary “elements”.

Outsourcing sales department  structure:

◼️ project manager;

◼️ operators team lead;

◼️ outsourcing sales manager (second line of sales);

◼️ operators (first line of sales).

Pros and cons of outsourcing sales department.

Complex sales outsourcing is a system for generating leads in various ways, working through contacts and bringing them to making a deal. It does this by passing the lead through various stages of the sales funnel. The undoubted advantage of complex sales outsourcing in comparison with call center or contact center services is the ability to get tangible income from closed deals in a short period.

Undoubtedly, a remote sales department can act as a call center, but this is only one of its functions. The second important advantage of a remote sales department in comparison with telemarketing services only is the creation of a long-term customer base (while regular calls are focused on a short sales cycle). You need at least 2-3 months of full-time sales department work to demonstrate a stable result.

Pros of outsourcing sales

  1. You don’t need to maintain a bloated telemarketer staff. Accordingly, the cost of renting an office, Internet, telephone, etc. is reduced.
  2. When entering a new market, you relieve your marketing department/sales managers from the unnecessary workload and save on their training.
  3. An experienced outsourcing company can be consulted about the offers of certain goods or services. If they have experience in your market, then they can recommend something for a quick start.

Cons of outsourcing sales

 

  1. People you don’t know sell your product. If you have a complex product, then questions from potential buyers may go unanswered.
  2. You can lose control of your sales if you outsource the entire sales cycle and also have no control over what image about your company your potential customers have.
  3. Privacy leak. The fewer people who know your trade secrets, the better. But if you outsource sales, some of the secrets will have to be revealed.

Is it possible to pay for the result?

Lead generation and lead management have their costs. The cost of one lead is determined by the costs spent on work, which should be divided by the total number of attracted leads. Thus, each lead has its own price. In telemarketing, for example, the cost of a lead includes the salaries of operators and other employees of the sales department, their training and preparation for a specific project, hardware and software, expenses for telephony, infrastructure, etc.

 

With further work and conducting contact through the next stages of the funnel. Leads are converted into sales – the ratio of the number of sales to the number of leads. Thus, the cost of each transaction is determined. All these are direct costs of the sales department, which it has from the moment the first call is made. Therefore, to demand from the sales department, which is often outsourced, to work for interest or for “result” does not look entirely adequate. It’s like asking your company’s full-time employees to work for “thank you.”

 

The second point is that the sales department is not responsible for the product or service being sold, for their quality and functionality, therefore it cannot take all risks for the result. The outsourcing company is only responsible for the quality of the sales process (development of the call script, the competence of the operators, timely progress through the stages of the funnel before the transaction is closed, etc.). These are the basic principles that reflect the essence of the functioning of the market.

 

And the third is probability. No matter how well the sales department works, there is a certain probability that the deal will or will not be completed. In addition, this process is inextricably linked with the comprehensive marketing strategy (or lack thereof) of the customer company. Also, there are some other factors that are not related to the remote sales department, but which directly affect the performance.

 

Therefore, the answer to the above question is as follows: the existence of outsourcing of active sales for “result” can theoretically be allowed, but this phenomenon itself is essentially absurd.

Conclusion

The topic of outsourcing sales has been widely discussed for several years. Moreover, all the participants in the discussion are divided into three camps: representatives of companies offering outsourcing of sales, companies satisfied with their services, and those who were not satisfied. At the same time, we can give only one piece of advice: try and see what happens, but start with something small, since there is no point in expecting someone to come and increase your sales.

5 / 5. 1

Date
April 23, 2021
Author
Sunny

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