A number of the world’s largest companies are outsourcing their sales – and they’re seeing significant gains. For new businesses too, there are plenty of reasons why outsourcing is an attractive solution beyond cost-saving. Sales outsourcing teams can boost your bottom line, increase efficiencies and improve your product. Outsourcing with innovative partners can drive business growth.
According to research by CPM, the cost of a new sales hire is over two and a half times their salary in the first year. Ramp up time is a persistent problem. The average sales staff member takes 90 days to be trained and most do not stay longer than two years. So securing a return on investment is ever more challenging. A 2016 research paper by Accenture found just 22% of sellers’ time was taken up with lead generation, and only 36% of their average work week was spent selling. An outsourced sales team already have the diverse skills-set and experience to sell. So ramp-up time can be reduced or eliminated. The effect of this is that they can sell more in a quicker timeframe. According to CPM, 80% more deals are closed by outsourced sales teams. And they are reporting gains in just 12-18 months. While you’ll need to brief an outsourcer about your product, you no longer need to train your sales team to sell. Time and resources spent overseeing a sales team evaporate.
The savings associated with outsourcing sales have long been recognised. On average, those who outsource make a 30% saving. Take one example: technology. Buying the wrong CRM or using it in an ineffective way can be a costly mistake for new businesses. With an outsourcer, you won’t be buying unsuitable software. You don’t have to add staff to your payroll or provide employee benefits. And you won’t be tied to long term contracts. Outsourcing teams have further professionalised the sales industry. This is reflected in the way services are charged. While you can expect to pay monthly fees, you benefit from the time and expertise of an outsourcer. Their dedicated sales teams are ready to work in your market immediately. In effect, the outdated view that sales companies should be paid based on results alone has been replaced by a flexible, yet cost-effective solution.
If you don’t know where you’re losing leads in the sales funnel, or are wrongly diagnosing issues, your bottom line will be impacted. Business leaders have long analysed the lessons from companies in different industries. But with an outsourced sales team, you get insight from those with years of direct experience in different sectors and many have specialist knowledge. So sales outsourcing teams have access to a far greater number of qualified leads than new businesses could otherwise find. With a CRM database containing thousands of contacts ready to be utilised, this combination of greater quantity and better quality leads means more sales faster. Experience also transcends borders. Outsourcers understand and work in countries where languages and business customs differ. And they can help you maximise untapped sales opportunities in these markets.
There’s also a growing need for outsourcers to add further value. A sales outsourcing company will take on the role of a trusted partner, searching for new client opportunities. They feedback conversations from prospects to help you improve the sales process. If your product isn’t meeting the needs of your target market, sales outsourcing teams challenge you to adapt it. The thinking behind this is not to create a relationship of dependency. Rather it is for you to be supported when testing the market. In the long term, this gives you the basis for implementing a comprehensive sales strategy.
‘Value, rather than cost, is the new watchword, and will likely be measured by how service providers help empower business growth through innovation.’
2016 Deloitte Global Outsourcing Report
While many companies outsource for cost-saving purposes, the value of a sales partner goes beyond saving money. In the context of ever increasing power in the hands of buyers, spiralling costs of sales hires and technological change, new businesses need to navigate around a number of challenges. Outsourcing sales functions does not just eliminate a number of these headaches. It drives your business forward.