Inside Sales Vs. Outside Sales: What’s the Difference?

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.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block} Is your company’s sales cycle  struggling to meet customer demands  and build relationships? Small businesses often need to create an effective sales model and  understand the difference between inside sales vs. outside sales.  Hi, my name is AJ! After selling my company for multiple seven figures,  I created Small Business Bonfire to help other entrepreneurs! Finding the right sales model  helped my business grow and gain traction. So, if you’re ready to  learn about inside vs. outside sales  and which strategy is right for your company, keep reading! 









Key Takeaways







Inside sales are when reps sell products virtually via platforms like phone calls, emails, and video conferencing. 




Inside sales cost less than outside strategies and can scale more quickly. 




Outside sales are when reps travel to meet with potential clients face to face. 




In-person meetings (typically) lead to stronger client relationships and more brand loyalty. 












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/*! elementor - v3.17.0 - 08-11-2023 */
.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px} What is Inside Sales?



Inside sales happen when sales reps  sell products or services remotely  to clients.  These  remote communication channels  can include the following outlets:  Phone calls  Emails  Video conferencing (Zoom, Google Meet, Skype, etc.)  Messaging  Social media  Inside sales are also called  virtual sales  because  agents never actually meet with prospects face to face.  Of course, this has  advantages  and  disadvantages  (which I’ll cover later).  From an employee’s perspective,  one of the best parts of being an inside sales rep  is that you can work from home!  What do Inside Sales Reps Do? Inside sales reps are primarily responsible for  identifying potential clients, contacting them via remote channels, and persuading them to purchase products or services!  Inside sales teams have various tasks, including the following:  Conducting market research Handling inbound sales queries Presenting and demonstrating products or services  Closing sales deals over the phone or through online platforms On top of that, these sales professionals  nurture long-term relationships  with customers to  encourage repeat business . Benefits of Inside Sales There are  three main advantages  of having inside sales teams, including the following:  They don’t cost as much as outside sales teams  They’re more scalable than outside sales strategies  They offer more time for other tasks  Ensure you know these benefits when comparing inside sales vs outside sales! Lower Cost Than Outside Sales  Inside sales teams  tend to be less expensive  than outside ones primarily due to  reduced overhead costs.  For instance, inside sales reps eliminate the need for the following costs:  Travel expenses Meal allowances  Client entertainment budgets  While  these expenses are crucial for outside sales representatives  (because they have face-to-face interactions), inside teams don’t need them!  As a result, an inside sales strategy is  a more cost-effective solution  for small businesses. More Scalable Than Outside Sales  Inside sales strategies are more scalable  than their outside counterparts due to the extensive use of  digital technology  and  automated systems.  Today’s technology allows businesses to  reach a more significant number of prospects  in various geographic locations simultaneously. By reaching more clients,  it provides greater capacity for growth  without the need for significant increases in resources or staff! More Time for Ancillary Tasks  Being  virtually based,  inside sales teams have  more flexibility  because they are not tied to travel schedules or onsite meetings.  Having more flexibility allows an inside sales team to  have more time to invest in ancillary tasks , including:   Customer database updating Market analysis  Strategizing for customer engagement Inside Sales: Duties & Responsibilities When comparing inside and outside sales,  it’s crucial to understand the duties and responsibilities  of each position.  Below are the three primary responsibilities of inside sales reps! Prospecting and Client Acquisition:  Inside sales reps actively seek new clients by conducting market research and using inbound and outbound sales strategies.  Product Presentation and Sales Closure:  Reps must demonstrate their products’ or services’ features and benefits to customers through online platforms. They use their sales and persuasion skills to convince prospects to purchase. Customer Relationship Management:  Inside sales reps must maintain strong customer relationships after-sales. They follow up with clients to ensure satisfaction and resolve any issues. Inside Sales Skillsets Here’s what an inside sales team must be able to do if they want to be successful! Resilience to “No” Inside sales reps must be resilient to hearing potential clients say “no”  because rejection is common in the sales landscape!  Therefore, maintaining a positive attitude, learning from the experience, and persisting in  their efforts can be the key to achieving long-term success. Negotiation Skills Inside sales reps must have  negotiation skills  as they talk about the following details with potential customers:  Pricing Delivery dates  Other contract terms  Further, these negotiation skills  allow members of an inside sales team to secure the most favorable terms  for their company! At the same time, excellent negotiation skills can do the following things:   Ensure customer satisfaction Drive successful deals  Build long-term, profitable relationships Customer Service Skills  Inside sales agents need  strong customer service skills  because they are directly involved in the following things:  Resolving clients’ issues Handling inquiries  Providing product support These details are integral  to building and maintaining long-term, satisfying customer relationships!  Product Knowledge  An inside sales representative MUST have  extensive product knowledge. When agents understand what the company sells, it equips them with the ability to do the following things:  Convincingly articulate the benefits and features of their product or service. Answer customer inquiries accurately  Address potential objections Enhances their persuasiveness   Increase the likelihood of sales success Teamwork Skills Lastly, inside sales team members must possess  teamwork skills  because they often  work closely with various departments.  When working with other departments,  ensuring a unified approach  to customer satisfaction and effectively meeting sales targets is crucial!  Inside Sales Models Here are the steps to (most) successful inside sales processes! Prospecting  Prospecting is  identifying  and  reaching  out to potential customers, known as prospects.  The goal of prospecting is to convert them into paying customers.  Further, prospecting involves various strategies, such as:  Market research Cold-calling Email outreach  Leveraging social media platforms Inside sales professionals use prospecting to identify and engage with potential leads!  Qualifying  Qualifying is the step where the inside sales rep  assesses the potential of prospects to convert into a customer.  Qualifying leads is based on specific criteria, including:   The lead’s need for the product The prospect’s ability to afford the product or service The lead’s decision-making power Lead qualifying is  an essential part of the sales process  designed to help reps spend time on leads most likely to convert. As a result, qualifying leads increase efficiency  and  productivity. Presenting  Product presentations are  comprehensive demonstrations  of the following aspects of a product: Features Benefits  Potential applications Typically, an inside sales rep does product demonstrations to  persuade potential customers to make a purchase!  Closing  Closing is the final step in the sales process , where the sales agent finalizes the transaction.  Also, closing a deal  solidifies the customer’s commitment to purchase the product or service!  Follow Up  Follow-ups are  integral to long-term success  as they foster strong customer relationships and provide opportunities for upselling or cross-selling.  Also, following up ensures the following things:   Better customer satisfaction rates  Prompt, timely resolution of issues that may otherwise go unnoticed  Reinforcing your brand’s value More customer loyalty and repeat business Inside Sales Example Here’s a fictional example of inside sales to help you better understand how this sales process works!  Consider a Software-as-a-Service (SaaS) company  selling project management tools.  An inside sales agent from the company identifies potential leads in small businesses through LinkedIn.  Then,  they email the potential client,  introducing their product and scheduling a demonstration.  During the demonstration, conducted through a video conferencing platform, the sales rep  highlights the software’s features and benefits tailored to the client’s business needs.  After that, the rep  negotiates the pricing  and closes the deal online.  Post-sale, the rep maintains regular contact with the client to ensure the following things:  Customer satisfaction Address any issues  Explore opportunities for upselling or cross-selling other tools from their company’s portfolio.





















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Pro Tip #1: Use a customer relationship management (CRM) system to help streamline inside and outside sales processes (prospecting, lead qualification, automation, etc.). 
- AJ Silber









What is Outside Sales?



Outside sales are when reps meet with potential and existing clients  face-to-face.  Typically,  outside sales reps must travel in order to meet with clients.  “What’s the point of all this traveling?” you might be asking!  When buyers can meet with someone in person, it often results in the following things:  Stronger relationships  More trust in the company and sales agent  Higher chances of repeat buyers  There is a higher chance of converting prospects  As you can see, in-person meetings can be quite beneficial, but  they demand more time, energy, and planning.  What Do Outside Sales Reps Do? Outside sales reps spend most of their time on the road , visiting potential and existing clients at their offices or homes.  On top of that,  an outside sales rep is responsible for several things,  including:   Presenting and demonstrating the features of products and services Explaining the benefits of products or services  Negotiating terms of sales  Closing deals Further, these agents must  cultivate  and  maintain  customer relationships to have repeat buyers and referrals.  Lastly, outside sales reps often attend the following events to find new sales opportunities:  Industry events Trade shows  Conferences  Networking events  Outside Sales Benefits The  two primary benefits  of having outside sales reps include the following things:  Agents form better client relationships  Companies experience higher close rates  Here’s why outside sales models can be effective for some businesses! Better Customer Relationships  Outside sales reps often form better customer relationships  due to their personal and direct interaction with clients. Direct interactions allow outside sales teams to  understand client needs and preferences better.  Also, in-person meetings reinforce  trust  and  foster rapport , leading to the following things:  Making it easier to handle objections Discuss complex issues  Provide customized solutions Lastly, these face-to-face encounters allow for a  more engaging and memorable customer experience , contributing to long-term customer loyalty and satisfaction! Increased Close Rate   Another advantage of having an outside sales team is that  they have a higher deal closure rate.  Outside sales reps typically have higher deal closure rates due to their  direct ,  personal interaction  with potential clients. As a result,  it promotes a deeper understanding of the client’s needs  and a tailored sales approach.  Further, in-person meetings allow for  more effective handling of objections and negotiation  of terms.  Lastly, the  trust  and  rapport  built from face-to-face encounters often lead to a  higher level of commitment  from the client! Outside Sales Duties & Responsibilities The  three primary duties of outside sales teams  include the following responsibilities:  Prospecting and Lead Generation:  Outside sales reps must seek and identify potential clients interested in your company’s product or service. This often involves researching market trends, attending industry events, and leveraging existing networks to generate qualified leads. Client Meetings and Product Demonstrations:  Outside sales reps are responsible for personally meeting prospective and existing clients to present and demonstrate the features and advantages of their product or service.  Sales Negotiations and Deal Closures:  An essential role of an outside sales rep is negotiating sales terms and finalizing deals. They must effectively address any objections the client raises, negotiate pricing and contract terms, and secure the client’s commitment to the purchase. Outside Sales Skillsets   What does it take to be a successful outside sales rep?  Below, I’ve compiled the top qualities to look for in these employees and applicants! Resilience to “No” Outside sales reps must demonstrate resilience to hearing “no.” In the face-to-face sales environment,  rejection is common , and the ability to bounce back and maintain a positive, persistent approach is  critical for long-term success and relationship-building! In-Person Communication Skills Excellent  in-person communication skills are crucial  for outside sales reps because these abilities do the following things: Facilitate more compelling and persuasive product presentations Promote effective negotiations  Form better relationship-building with potential and existing clients  Contribute to higher sales success rates Presentation Skills Outside sales agents need  exceptional presentation skills  because they must be able to do the following things: Effectively demonstrate the value of their products or services Engage their audience  Convincingly communicate their sales proposition All of these details are critical factors in closing a deal! Product Knowledge Outside sales agents must have excellent product knowledge because it  empowers them to clearly explain the benefits of their company’s products or services. Also, product knowledge ensures the outside sales team can do the following things: Address customer queries proficiently.  Tailor their sales pitch to meet the client’s specific needs and challenges. Better at Working Alone Lastly, outside sales agents must be  better at working alone. Employees in this role often  require them to operate independently  in the field, managing the following things without support: Their own time Make decisions  Solve problems  Outside Sales Models The outside sales model is  identical to the inside sales cycle.  However, there are a few distinct differences because outside sales teams meet clients in person.  Prospecting  Inside and outside sales teams must  prospect for potential customers.  Usually, each sales model utilizes the same strategies to find prospects! Qualifying  Lead qualification   determines whether a prospect has the potential and intent to become a customer  based on their:  Needs Budget  Decision-making authority Presenting  Presenting or demonstrating how a company’s products or services work is one of the primary ways inside sales vs. outside sales differ.  Outside sales reps typically deal with product demonstrations in person  rather than virtually.  Closing  Closing the deal for an outside sales rep typically involves the following things:  Face-to-face negotiations Successfully addressing any final objections  Securing the client’s commitment to purchase Usually,  closing deals involve a signed contract or agreement. Follow Up   The follow-up process in outside sales is crucial because it  fosters customer relationships and demonstrates a commitment to meeting their needs. On top of that, following up  opens opportunities for future business,  enhancing customer retention and loyalty! Outside Sales Example An example of outside sales is  a car salesperson at a dealership.  These agents  prospect customers by scanning the lot  for interested individuals.  Then, car sales agents qualify leads by assessing the customer’s  current vehicle situation and budget. After that, they present the features and benefits of various cars during test drives! The salesperson  closes the transaction through in-person negotiations  about pricing and financing options. Of course, it’s crucial for sales agents to follow up post-sale to ensure  customer satisfaction  and  encourage future business or referrals.















Inside Sales Vs. Outside Sales Team Structure



How do team structures vary regarding inside sales vs. outside sales?  Many business owners are surprised to hear the roles are identical; however, the way each employee performs the role differs! Sales Director  The sales director in an outside sales team typically  oversees field operations and strategies. This person  ensures the team meets its sales quotas  through in-person customer interactions and negotiations. Conversely, a sales director in an  inside  sales team focuses more on the following things:  Managing remote sales operations Leveraging technology and digital platforms for customer engagement Lead generation   Virtual product demonstrations Sales Managers  Sales managers in an outside sales team often have a  hands-on role ,  coordinating  and  supporting  their team members during client meetings and deal negotiations.  Meanwhile, in an inside sales team, these managers are primarily desk-bound,  utilizing technology to monitor and guide their team’s performance  throughout the sales process. Sales Reps  As discussed throughout this article, inside and outside sales reps primarily differ regarding  traveling  and  how they deliver sales pitches.  An outside sales team travels to  meet their clients in person.  On the other hand,  inside sales rep spend their time in the office or at home , delivering pitches virtually.  Sales Engineers  Sales engineers leverage their  technical expertise to explain complex product features  to potential customers, aligning the product’s capabilities with the client’s needs. Customer Service Reps  Customer service representatives are vital  for sales teams because they do the following things:  Resolve customer issues Ensure customer satisfaction  Foster long-term client relationships















How to Track the Performance of Inside & Outside Sales Reps 



Here are  seven ways  to track how your inside and outside sales team performs! Number of Appointments Set The number of appointments set directly  measures a sales rep’s effectiveness in prospecting  and engaging potential clients.  This key performance indicator (KPI) reflects a team’s  efficiency  and  outreach  skills. Lead Response Time  Lead response time is the duration between w hen a lead first makes contact and when a sales team responds. This metric  signifies the efficiency of a rep’s ability to connect with potential customers  and convert opportunities into transactions. Win Rate  The win rate is calculated as the  number of closed deals divided by the total number of opportunities.  Win rates demonstrate the sales rep’s ability to  convert potential leads into paying customers. Close Rate  The close rate measures the  percentage of sales opportunities successfully converted  into actual sales! Acquisition Cost  The acquisition cost is  all the expenses involved  in acquiring a new customer.  This metric is a  significant indicator of sales performance , reflecting the efficiency of a sales team in attracting and converting prospects. Customer Lifetime Value Customer lifetime value estimates the  total revenue a business can expect from a single customer account  over the length of their relationship. CLV measures a sales rep’s long-term value in the organization through customer retention and upselling or cross-selling efforts. Customer Churn Rate The customer churn rate measures the  percentage of customers who end their relationship with a company in a given period.  This measure reflects the  ability  of a sales team  to maintain customer interest, satisfaction, and loyalty  over time.

















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Pro Tip #2: Understand the benefits, disadvantages, and duties when comparing inside sales vs outside sales and deciding which method to implement in your company. 
- AJ Silber









Common Tools Used by Inside & Outside Sales 



The  three most popular tools  inside and outside sales teams utilize include the following:  Customer relationship management ( CRM ) software Customer communication tools  Call tracking software CRM  CRM software is a pivotal tool for every sales model, acting as a  centralized database to track interactions  with current  and  potential customers.  Further, CRM aids in the following things: Managing leads Simplifying customer communication Analyzing customer interactions Boost sales salary  Provide in-depth data on the sales cycle  Help sales representatives improve and meet sales goals  Customer Communication Tools  Customer communication tools  streamline engaging with prospects and customers , allowing for efficient and personalized interactions that can drive sales.  These tools offer features such as:  Automated responses Real-time chat  Data analysis  When sales representatives  respond promptly  and  tailor their sales pitch to individual customer preferences , it boosts customer satisfaction and the likelihood of sales conversions! Call Tracking Software  Call tracking software assists sales teams by  recording  and  analyzing   phone call data , which can: Provide vital insights into customer behavior Help teams learn about campaign effectiveness  Improve lead generation strategies















Final Thoughts on Inside and Outside Sales



Inside and outside sales are both  vital  for the  entire sales process.  Outside sales reps spend time  meeting clients in person , creating stronger relationships.  In comparison, an  inside sales  strategy aims to  connect with customers virtually.  Will your company adopt  inside  or  outside  sales professionals? Let us know in the comments section! 




The post Inside Sales Vs. Outside Sales: What’s the Difference? appeared first on Small Business Bonfire .