As we just mentioned, the first concept is inside versus outside sales. Traditionally, inside sales only involve those sales made over the telephone such as telesales. But thanks to the internet, inside sales now encompass those sales made via Skype, Email or any other cyber communication methodology as long as the salesperson is working from behind a desk. Outside sales on the other hand, is the exact opposite. The US Department of Labor considers an employee an outside sales person if he or she makes sales outside of the office usually through face-to-face meet ups with clients. Why do we distinguish between the two? For starters, we distinguish between the two because there's big differences between the two. These include things like business tactics. Since outside sales are essentially conducted during face-to-face interactions, it is thought to be more effective to entice customers. To quote a Harvard Business Review study, "Field sales are more strategic, meeting with C-level executives and developing strategic business innovation to help them grow their businesses versus inside which is more quantity and not as in-depth the majority of the time." But inside sales are rapidly catching up. Web conferencing allows inside sales reps to demonstrate their products without the need to meet the client personally. Other strategies involve social media, hosted CRM, screen shares, and integrated telephony tools. There are also low cost and user-friendly software as a service tools that have boosted inside sales and made them more cost effective. Next difference is quantity versus quality. Inside sales versus outside sales can be likened to the quantity versus quality argument. Since inside sales representatives do most of their selling from behind a computer screen, they have the ability to pitch their product or service to a large number of people every single day. They also don't have to worry about travel impacting the time, they have at their disposal, allowing them to maintain the large number of people they can reach out to during office hours. This is not to say that they only land lower-quality customers but rather their sales cannot be usually classified as big ticket purchases. More often than not, orders for smaller quantities are made via inside sales as opposed to outside sales. Outside sales focus more on complex quality products and services that they can sell for a steeper price. That's why field reps preferred to meet their clients face-to-face and explain the intricate functionalities of what they're selling and make sure the potential buyer understands them. Outside sales reps may reach fewer customers but they are likely to be well targeted ones. Sales cycles. Sales cycles are naturally shorter for inside sales people because of the lesser likelihood of face-to-face interaction. But since the focus of field representatives is on volume, those cycles tend to be longer and more complicated. Inevitably, outside sales people are likely to foster stronger and longer lasting relationships with their clients. Another factor is skills and qualifications. Outside sales are best suited for people who like working independently and managing their own schedule as they set their own appointments with prospective clients. They should also be able to adapt to new people and environments easily as they're always visiting new prospects and doing a great deal of traveling. Since they meet clients face-to-face, field reps are required to look their best and be their best even when they're not much in the mood. As for inside sales representatives, they need to have a way with words. Because they don't usually have a means to demonstrate the product or service live, they should be able to articulate enough to explain the item in an engaging manner that attracts potential buyers. Collaboration with peers is also common among inside sales people as they work in an office. Inside sales reps should be able to perform all associated administrative tasks within the workplace. Another factor is cost. Outside sales tend to be the costly or of the two since field reps command higher base salaries. They also travel a lot which adds to incidental costs and might create some work inefficiencies. Though these two sales strategies are opposites, the traditional divide between the two is slowly disappearing, with many companies adopting a hybrid form of inside and outside sales. For example, sales people may call from their company's office and then traveled to client locations to complete a deal. In fact, current research shows that outside sales reps are spending almost half of their workday selling remotely.
