Outsourcing sales functions helps businesses speed up the sales cycle without the associated cost of building an in-house team.
Sales Outsourcing Definition
Sales outsourcing entails delegating specific tasks or the entire sales process to a third-party agency or freelancer.
These are commonly outsourced sales tasks:
- Lead generation
- Appointment setting
- Sales support
- Market research
Sales Operations Definition
The term “sales operations” refers to the coordinated efforts of several departments to increase sales, expand into new markets, and otherwise advance the company’s overall objectives.
Lead generation is the process of attracting consumer attention to your brand or offerings. It is generally a marketing task, but every successful sales strategy begins with this approach.
In some companies, salespeople implement lead generation strategies, but this setup consumes most of their time and distracts them from essential tasks for closing deals.
Appointment setting is a strategy that drives sales by using lead qualification to identify prospects that fit the company’s ideal customer profile. If the lead is a match, they’ll be pushed to the next stage of the buyer’s journey.
This program is usually implemented by sales development representatives (SDRs), but not all companies have the internal expertise or resources to build their in-house teams.
Outsourcing appointment setting programs can unburden account executives, allowing them to focus on closing deals. It also fills the gap between the sales and marketing teams, reducing missed opportunities and ensuring the pipeline has a steady flow of conversions.
Sales support refers to a range of functions essential to close deals. These usually include administrative duties and customer support tasks. Outsourcing sales support has two main benefits:
- Unburden your sales team: A study shows that 64% of a sales rep’s workday is spent on paperwork and non-selling tasks.1 By outsourcing sales support, reps and managers can focus on nurturing leads and converting them into customers.
- Boost positive customer engagement: Active sales support can make clients feel more accommodated. With a dedicated team through an outsourcing agency, your customers get the attention they deserve.
Market research is crucial in sales, as it provides valuable and in-depth information about consumer behavior. This data allows administrators to make better-quality decisions on strategies and business processes.
Outsourcing this sales function provides company decision-makers access to the latest and most accurate data without adding workload to the sales team. Service providers also have experts and tested methodologies that enable them to get precise information without overlooking important details.
Top Benefits of Outsourcing Sales Operations
The top benefits of outsourcing your sales functions are:
- Cost savings
- Quick rollout
- Access to expert workforce and tools
|Money Saving Opportunities||Average Expenses|
|Hiring process||$4,000 per person|
|Training||$500 to $5,000 per person|
|Tools||$10 to $100 per tool, monthly|
|Equipment||$500 to $1,500 per person|
|Office space||#350 per square foot|
Outsourcing sales functions allows your business to save significant money on:
- Hiring processes: According to Glassdoor, the average cost of hiring a new employee is $4,000, and the price goes higher when filling a specialized role.2
- Training: The cost of sales training programs available to the public ranges from $500 to $5,000.3 You’ll also need to provide accommodation, transportation, and allowance to employees if the course is in another location.
- Salaries: The average salary of SDRs is $46,044 annually4, while sales managers get around $63,085.5
- Tools: Tools and software can significantly boost the productivity of salespeople. These prices can range between $10 and $100 per person monthly, depending on the tools’ features.
- Equipment: In-house employees will require a workstation, which usually includes a desk, telephone, and computer. This can cost between $500 and $1,500 per person.
- Office space: You’ll need to provide a workspace to the new salespeople you hire, which means renovating your office or relocating to a larger building. The average renovation cost for commercial spaces is $350 per square foot.6
Sales outsourcing is not entirely low-cost, but most times, it is a more accessible solution than building an in-house team. When you choose the right service provider, the budget that goes into outsourcing becomes justifiable and helps generate an ROI for your business.
Pro Tip: It’s recommended to request a quote from multiple service providers to know the fair price for the services that you need.
A typical sales team is composed of:
- Sales development representatives (SDRs): They are responsible for filling the pipeline with qualified leads. The average ramp-up period of SDRs is 3.1 months7, and it can take up to a year to make them top performers.
- Account executives (AE): They convert the leads that SDRs generate into customers. Their average onboarding time is 4.5 months8, and training them to become top performers can also take up to a year.
- Sales manager: They oversee sales teams to ensure they follow company standards and hit goals. Finding a manager with the right experience and skill set can be challenging, making it one of the most difficult positions to fill.
Outsourced sales partners have teams of experienced and trained salespeople ready to take on your campaign. They’ll only need to familiarize themselves with your brand and offerings, which is possible in a few weeks.
Pro Tip: Ask the service provider about their hiring and training processes. This will give you insight into their workforce’s skills and qualifications, making it easy to determine if they’re the right fit for your needs.
Access to Expertise
Outsourcing companies are more likely to have subject matter experts in their workforce as a result of their experience and rigorous hiring process. You can leverage their in-depth knowledge to get better and faster outcomes with your sales strategies.
Aside from an expert workforce, reliable outsourcing companies also provide access to:
- Elite management: Finding the right managers to guide a sales team can be difficult, as top performers in this position need years of experience and a specialized skill set. Outsourced sales agencies have knowledgeable managers that can guide your team to success.
- Established Infrastructure: Reputable outsourcing companies have tested and proven processes for implementing sales functions. This allows you to identify best practices and emulate them in other departments within your organization.
Pro Tip: Some outsourcing agencies are picky when choosing a business to partner with. This can be a good sign, as it shows that they are dedicated to providing the best quality service.
It’s a great idea to read reviews written by previous clients on independent platforms before deciding to work with a service provider. This will give you insight into what it would be like partnering with the outsourced sales agency.