Being able to sell services or products is a key element of running a successful business. However, this process isn’t always cost-effective, especially when it comes to applying traditional sales approaches.
For small businesses, it’s important to find a balance between the ability to engage with clients while controlling overhead cost – that’s where inside sales come in.
To understand this sales model in detail, we’ve put together this comprehensive guide discussing the difference between inside and outside sales, the best tools to related to the application of inside sales, and how to fine tune inside sales to help your company thrive in a competitive marketplace.
Table of Contents
1. What are inside sales?
2. Inside sales vs. outside sales: A brief comparison
3. Why small businesses should consider inside sales
4. List of skills needed for inside sales
5. Tools required for inside sales
6. How to improve inside sales for small businesses
7. Conclusion
What are inside sales?
Inside sales refers to how a businesses’s representatives sell its products or services remotely using several tools like phone, email, and video conferencing. The model allows businesses to connect with potential clients and customers without needing to meet in person.
Inside sales are popular in various industries, especially SaaS, B2B, and tech industries that sell high-ticket items and where quick communication and responses are prioritized. By 2025, 80% of B2B sales interactions are estimated to occur through digital challenges, according to Gartner Future of Sales research.
Inside sales are especially suitable for small businesses as it can reduce the cost of sales by 40-90% as compared to other sales options. That’s in part because it only requires a sales force per contact, while increasing the number of contracts per day.
For small companies, inside sales presents a much more cost-effective solution to running a business, expanding the market without adding expenses from traveling or large-scale operations.
Inside sales vs. outside sales: A brief comparison
Both inside and outside sales are designed to generate revenue and build relationships with potential customers. Otherwise, there are a number of features that set them apart:
| Key aspects | Inside sales | Outside sales |
| Engagement method | Conducted remotely, often using digital tools like video conferencing, email, and phone | Face-to-face meetings or on-site visits are required |
| Sales cycle | Shorter than 90 days | Longer than 90 days |
| Interaction with customers | Better efficiency, and transactional | A personal and rational approach |
| Overall cost | Lower, since there are no travel and lodging expenses. Inside calls may cost around USD 50. | Higher due to travel, accommodation, and logistics expenses. Outside sales may cost USD 308. |
| Scalability | Faster since reaching and connecting with prospects is easier | Limited as it requires meeting in person, which may be restricted by geographical location |
Why small businesses should consider inside sales
Now that we understand the differences between inside and outside sales, it’s time to look at why small businesses may want to consider the former over the latter:
It is cost effective
Inside sales eliminates the cost requirement associated with meeting in person, such as traveling and accommodation.
This can help small businesses save a substantial portion of their sales budget while boosting engagement opportunities without the need to leave their desks. It also saves time and money.
Provides more scalability
With inside sales, a business is better equipped to expand outside of its local market. Sales representatives can approach target and potential clients anywhere around the world, potentially growing the customer base much faster.
Boosts productivity
Another reason to choose inside sales is the increase in productivity. It also reduces response time by more than 13%, as compared to outside sales.
Inside sales teams can better follow up on leads, helping them convert potential prospects into customers more efficiently.
Flexible approach
Having sales flexibility is a crucial part of small businesses being successful. It helps them adapt much faster to market changes and as per customer needs. An inside sales team helps pivot strategies much more easily than outside teams.
List of skills needed for inside sales
To be successful in inside sales, it’s important to have the skills needed to enable an effective sales environment and close more deals.
For small businesses, the list of skills to focus on includes:
Communication skills
The ability to understand the key aspects of a product or service and communicate them directly to customers or clients. Here, the sales representative needs to be clear and persuasive when building relationships.
Time management
By prioritizing tasks while managing time efficiently, a small business can better ensure that its representatives are able to follow up on leads while balancing other tasks.
Understanding of sales closing
Sales closing is a crucial step: 48% of sales calls end without an attempt to close the sale, while national sales in America have a closing rate of 27% overall. Having an understanding of techniques needed to close a sale, especially when using inside calls, is essential to success.
Active listening
Since inside sales are not in-person but rather rely on digital tools, it’s important for sales representatives to be skilled in active listening. This allows them to understand customer requirements and offer them tailored solutions that resonate with them.
What tools are required for inside sales?
Successful application of inside sales is only possible with the right tools. It is also crucial to know which tools are needed to achieve sales goals and improve marketing strategy.
For small businesses, here is a checklist to follow:
Phones: Inside sales can use either phone or internet-based communication, but phones can often have an added depth crucial to building relationships
Video conferencing software: Another important tool is having video conferencing software that allows you to have a face-to-face conversation without requiring you to meet in person
CRM software: CRM software makes it easier to organize sales information, streamlining communication and collaboration
Call tracking software: This helps determine whether campaigns are getting the most out of sales calls, as well as helping to determine the allocation of market budget
Reporting dashboard: Depending on the CRM software used, a reporting dashboard makes it easier to track number of sales, monthly targets, and follow-ups, etc.
How to improve inside sales for small businesses
Besides having the understanding and skills needed for inside sales, small businesses should also focus on how to improve their overall sales approach. This includes:
Integrating inbound and outbound marketing
Combining inbound and outbound marketing strategies can help businesses better attract potential and qualified leads. It also streamlines contact with new prospects.
Taking leverage of technology
Digital tools play a major role in achieving effective results, though investing in CRM software and other such tools can help streamline the entire sales process. Automation can also be used to track lead interactions and follow-ups.
Having clear metrics
Define your team’s KPIs or key performance indicators, including conversion rates, average deal size, etc., to understand if their efforts meet results. This can also highlight other areas where inside sales teams should focus their efforts.
Improving personalized communication
Sales, especially when utilizing an inside approach, require strong communication skills. This includes the ability to tailor messages to the individuals the business is targeting. It has been found that approximately 45% of prospects prefer to engage with reps who understand their business requirements.
Conclusion
Insider sales offer a powerful opportunity for a small business, especially those looking for a selling process that can minimize costs associated with other methods.
Understanding the basics, benefits, and strategies of inside sales can help improve and tailor a business’s overall approach. Once this is determined, a business should be better equipped to enhance its efficiency, foster stronger relationships with customers, and see long-term, sustainable growth.
