What Is Inside Sales? – Importance, Working, And More

What Is Inside Sales - Importance, Working, And More

Inside Sales is the most dominant sales model for use in B2B, SaaS, tech, and a variety of B2C industries that sell high-ticket items. Simply put, this type of sale is a way through which one can handle sales from a remote area. This is one of the fastest-growing sales roles in various organizations. The job of such a rep includes selling the products or services of the organization through email, phone, and online channels (that is, not in-person).


What Is Inside Sales?

What Is Inside Sales

According to Investopedia,

Inside sales refers to the sale of products or services by personnel who reach customers through phone, email, or the internet. Other ways to define inside sales are “remote sales” or “virtual sales.” It is called “inside” because these sales reps remain indoors, often at a call center or company office. Inside sales may or may not be outsourced to a third-party vendor.

In B2B, Tech, SaaS, and B2C businesses, this type of sales model is dominant, as it leads to high-ticket sales. You can contrast it with outside sales. In the latter, sales personnel physically go out and meet potential customers. Simply put, through this type of sales model, salespersons handle sales remotely.

Inside sales representatives work alongside a team of other inside sales colleagues in a shared environment. This makes these types of sales jobs different from the face-to-face sales model. Outside sales representatives pursue the latter model and go to the business locations of clients. These types of sales representatives traditionally do not travel.

However, despite this, these sales representatives are proactive and contact potential customers and also engage in cold calling. On the other hand, an incoming call from a prospective customer also falls under this sales process. A company might also consider outsourcing its sales duties to a third party for various reasons.

How Does Inside Sales Work?

How Does Inside Sales Work

As businesses are now looking for ways to grow conversations at all stages of the sales funnel, they are trying to establish skilled teams. This is the logical way to compete for the share of ever-shrinking buyer attention.

According to Salesforce.com,

There are typically two divisions within the inside sales department: Sales Development Reps (SDRs) and Business Development Reps (BDRs). SDRs focus on inbound sales like warm leads from potential clients who have performed an action on the website — downloaded content, requested a demo, utilized live chat, or attended a webinar.

These leads mostly come in the form of commercial industries and small businesses. The sales development representatives contact these leads and log in through a CRM platform. Through this platform, an account executive begins to nurture these opportunities in the sales pipeline.

On the other hand, the business development representatives do the job of cold callers. These outbound sales representatives focus more on higher-end enterprise and commercial opportunities. Once a lead gets qualified, the BDR sends it to an account executive.

Hence, with this inside sales process, sales development representatives, as well as business development representatives, offer a constant influx of leads from two market segments. These are small enterprises and large businesses. The account executives of the sales process follow these opportunities through the sales pipeline.

What Is The Importance Of Such A Process?

What Is The Importance Of Such A Process?

According to an article on LinkedIn.com,

Unlike how the traditional form of sales work, inside sales doesn’t require a salesperson to spend much time with the prospect. However, it requires him/her to be more technology-oriented and to make use of sales and customer relationship management software to be in constant touch with the prospects during their prospecting and buying process.

Companies use inside sales to sell their products and services remotely without the need for in-person interactions. The following are some of the major importance of inside sales:

  1. It is cost-effective as it eliminates the need for the cost of travel, which can reduce sales expenses.
  2. This type of sale is more convenient as it allows the sales reps to connect with customers from anywhere, which is better for both parties.
  3. These types of sales reps are more efficient as they are in a position to manage their time better. They can handle more calls and emails in a short amount of time.
  4. Due to more convenience and more efficiency, it is easier to scale this type of sale. The company can hire and train new representatives faster without paying for expensive travel.

What Are The Pros And Cons Of Inside Sales?

The following are the major pros and cons of inside sales:

Pros Of Inside Sales

Here are some of the essential pros of inside sales that you must know:

  1. As there is more use of technology, there is a faster response time in the case of inside sales. You can also use tech to automate the contact between you and your leads. This provides more likelihood for better services.
  2. The reduction of travel, personnel, and time saves a lot of costs, even when compared to investments in technology.
  3. The type of sale process allows for better scalability and conversion. Hence, there are more sellers as well as more clients.

Cons Of Inside Sales

Here are a few cons of inside sales that you need to be aware of:

  1. As compared to outside sales, the lead quality is not always great. Hence, there is a need for people who communicate greatly.
  2. With the popularity of this type of sales process, it is hard to differentiate.
  3. Also, sales personnel sometimes lack motivation and fail to engage potential customers through online or by phone.

Final Thoughts

Hope this article was helpful for you in getting a better idea of inside sales. Basically, this type of sale is the sale of products and services that sales personnel make by phone or online. Here, the salesperson does not meet the customer or prospect in person. On the other hand, outside sales rely on in-person meetings and physical interaction.

To get greater efficiency in sales, many companies use both types of sales to assist each other in tasks, like generating leads, to increase sales. However, with time, this type of sale is getting more popular, as customers prefer to be approached online or by phone. Do you have anything more to add? Share your info with us in the comments section below.

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