Sales is the lifeblood of any company. Without a steady stream of customers, your business will quickly wither and die. That’s why it’s so important to have a team dedicated to generating quality leads and bringing in new business. But is it better to outsource this critical function to a third-party firm, or handle it in-house? There are arguments in favor of both approaches, but when you weigh the costs and benefits, outsourcing your sales development is the clear winner.
Powerhouse sales development teams have become a non-negotiable aspect of high-growth companies. In order to generate leads and exceed revenue goals, many companies have begun to outsource their sales development departments.
Sales development outsourcing is an appealing solution for rapidly growing companies that want to scale their sales efforts – without sacrificing quality or success rates. When a firm is considering whether or not to outsource their sales development team, decision-makers need to look at the big picture.
There are many advantages to outsourcing sales development, including:
- Increased Efficiency
- Increased Sales Volume
- More Cost Effective
- Access to Expertise
- Flexibility
We’re going to take a detailed look at each of these factors – so you can determine if outsourcing your sales development team is the right move for your business.
Increased Efficiency
Outsourcing sales development can help companies to achieve greater efficiency in their sales operations. When sales development is outsourced, companies can specify exactly the type of support they need, and they can receive this support on a schedule that meets their needs. Having the support of a dedicated sales development team can help to free up in-house sales staff to focus on other tasks – their core competencies – and leave the sales development process to the experts.
These dedicated outsourced sales development firms often have access to state-of-the-art tools and resources that can make sales development activities more timely and efficient. When company management is confident that their firm’s sales development is “hitting it out of the park,” it lifts a major burden of stress off of their proverbial shoulders. This confidence can help to improve focus and allow their company to invest more in areas that directly impact their bottom line.
A final note, which is not to be underestimated, is that outsourcing companies often have relationships with key decision-makers within their clients’ organizations, which can help to warm the relationship between your firm and your potential clients. This is a very real benefit of outsourced sales development that often goes unnoticed – that is, until your company begins to reap the benefits.
Increased Sales Volume
Outsourcing sales development can also help companies to increase the scale of their sales operations without sacrificing quality lead generation. When sales development is outsourced, companies can tap into the expertise of experienced professionals who can help them to improve their sales strategies and processes.
As mentioned above, outsourcing companies often have access to superior tools and resources that can help to increase sales effectiveness. For example, these companies typically have access to data and analytics tools that can help sales teams to better understand their customers and target markets. They can use these tools to build out a better understanding of their TAM (Total Addressable Market) and ICP (Ideal Customer Profile).
Once an outsourced sales development team helps your company to determine these essential metrics and personas, they can leverage their innovative tools to ‘get the word out’ about your product or service. These outsource companies can use powerful software to get in contact with all of the right people, exponentially increasing the number of quality leads your company has access to.
More Cost-Effective
Outsourcing sales development can also be more cost-effective than hiring an in-house sales development team. When companies outsource sales development, they can avoid the costs associated with recruiting, training, and managing an in-house team. In addition, they can often get more value for their dollar by outsourcing to a company that specializes in sales development and has a proven track record of success.
As MarketStar claims in their article “The ROI Truth of Outsourced Sales” – “[With an outsourced sales development team], you can expand your sales and customer support infrastructure without hiring or investing in additional software, licensing, office space, or other expenses.”
This concept is a game-changer; while there might be more financial costs up-front when dealing with an outsourced sales development firm, the massive spike in leads (and likely revenue) will be well worth it for companies that are pursuing a high-growth strategy.
The cost of hiring worthwhile Sales Development Representatives (SDRs) in-house is also a factor to consider. According to HubSpot, SDRs last an average of about 1.5 years in any given role. Given that it generally takes about 3 months to get any SDR up to speed in your company, you can only expect about 15 months of productivity from your average SDR.
If your company has a moderate-to-high SDR turnover rate, that could spell danger for your budget. When you outsource your sales development team, you no longer need to worry about the potential costs incurred by a high SDR turnover rate, as that will be managed by your outsourced firm. The point is simple – choosing a capable outsourcing company for your sales development needs will be a highly cost-effective way of sourcing quality leads in both the short- and long-term.
Access to Expertise
There are a number of benefits that come with outsourcing sales development, but one of the biggest is that it gives companies access to expertise that they may not have in-house. This can be especially beneficial for companies that are new to sales development or that do not have a lot of experience in this area.
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When companies outsource sales development, they get the opportunity to work with experienced professionals who can provide them with the customized guidance and support they need to achieve success. These sales development experts can help companies develop strategies, set goals, and troubleshoot any problems that may arise. Additionally, they can provide companies with the resources and tools they need to be successful – resources and tools that in-house employees may not even be aware of, let alone know how to use them.
The specific knowledge and general wherewithal that dedicated outsourcing sales firms can bring to the table is unquantifiable. These professionals understand the bigger picture when evaluating markets. Once they understand the types of customers you are aiming for, they can help you to structure your outreach in ways that the ‘average’ business owner would never consider. Not only will this result in more raw opportunities to make sales, but the leads you’re receiving will be of a higher quality, so converting leads into customers will be easier than ever before.
Flexibility
Another big advantage of outsourcing sales development is that it gives companies more flexibility in how they operate their sales operations. When sales development is outsourced, companies can tailor the services they receive to meet their specific needs and objectives. This can help companies to be more agile and responsive to changes in the market or in their business. In addition, outsourcing can help companies to save time and money by allowing them to scale their sales efforts up or down as needed. This is especially helpful if your business is seasonal or cyclical in nature.
Sales development outsourcing can be an extremely effective way for rapidly growing companies to scale their sales efforts without sacrificing quality or success rates. When done correctly, outsourcing sales development can lead to increased efficiency, massive gains in sales volume, cost-effectiveness, and flexibility. While there are many advantages to outsourcing sales development, it’s important to work with a reputable and experienced consultant who can help you navigate the process and ensure that your outsourcing efforts are successful.