As a start-up, your business lifeline is dependent on a streamlined sales process. Your sales process is vital in generating consistent revenue and overall business performance.
But it can be an uphill task.
You compete against major brands for the same customers with probably fewer resources. Additionally, you have a lot of other things to handle, from new recruitment to daily operations.
An outsourced sales team helps you worry less about your lead generation for your business growth. You can refocus on other aspects of your business, knowing your market positioning and optimization are covered. At a fraction of the cost, you can keep your startup risk low while gaming high-impact penetration and growth.
Here are detailed benefits your startup can enjoy from an outsourced sales team;
1. Leverage Experience and Expertise
Sales expertise has a price value that can include several failures. But, you can jump right into the best part with managed sales service.
An outsourced sales team has exceptional management experience with tested and trusted sales processes that you can leverage for further market positioning. The trained and experienced SDRs can be engaged to cover your inherent weakness. For example, you may have a fantastic sales team that excels at generating leads, but they may struggle to close deals and upsell.
Outsourcing that role would help with conversion without requiring time-consuming retraining.
Thus, outsourced sales teams would allow your team to focus on their strengths. The managed sales service assigns a dedicated team to ensure your weak areas are covered efficiently and successfully.
Thus, an outsourced sales team can cover your marketing operations partially or wholly, depending on your startup needs. It ensures better optimization and a high impact on your startup goals.
2. Free Up Your Resources For Other Strategic Functions
It’s common for a single person in a startup to perform multiple roles to meet the sales revenue targets. For example, the business owner may be actively pitching for new opportunities.
Although better than nothing, it denies you, as the owner, enough time and resources to take care of the business planning and operation of the startup. With an outsourced sales team, you can divert your energy to other valuable strategic components of the start-up.
Reduction of costs is one of the primary reasons for business outsourcing. Outsourced sales teams have several financial benefits to a startup:
• Eliminate salaries and managerial costs of hiring in-house sales teams.
• No cost is linked to rent and office maintenance for an in-house sales team.
• Reduced hiring and training costs for new sales executives. Additionally, you won’t shoulder the costly burden of employee turnover-above $1,500 annually.
• Miscellaneous costs like legal fees, insurance, benefits, maternity, sick leaves, etc., can increase the administrative costs of your in-house sales team.
The true cost of having an internal sales team can cost about a third to half of your annual revenues. Thus, an outsourced sales team may help you save some of your limited money and resources to other valuable aspects of your startup.
4. Improves Flexibility
With an outsourced sales team, you can quickly scale your operations as per your needs. You can engage outsourced sales development reps (SDRs) to set more appointments and opportunities for your company’s growth.
If you’re gaining so much growth that may affect current customer satisfaction and overall company operation, you can dial down on your outsourced sales teams. The team can reduce the number of appointments and lead generation to adjust to your current dynamics.
Thus, you have full control of scaling as per your business dynamics.
5. Saves Time
Sales require a lot of hiring and training time. The turnover rate is quite high at over 30%. For a startup amid a pandemic-induced recession, this means decreasing sales velocity. Don’t forget possible delays from vacation and sick leaves.
Sales outsourcing allows for a faster onboarding process. A salesperson is promptly replaced by their teammates in the event of turnover, vacation, or sickness. The work procedure continues without any interruption and time wastage.
6. Improves Speed-To-Market
An efficient and effective managed sales service can execute your sales tasks, either wholly or partially. It can create a robust sales process from scratch in a short period, whether for a new product, a new territory, or a new ideal customer profile (ICP) for your company.
You have vast opportunities to experiment and test a new approach because the costs are modest, and you can leave at any time if you are not getting value for your efforts.
Hence, you’ll not need the trial and error of an in-house SDR, especially when targeting new markets. An outsourced sales team is fully equipped with relevant modern software and techniques to help you tap into new markets with precision and efficiency.
7. Better Accountability
A good outsourced sales provider can submit reports for accountability and transparency on your sales progress. The frequency of these reports may depend on your needs as a business.
Additionally, the outsourced sales team has other attributes that help improves their accountability:
• They have dedicated SDRs to help turn around your sales targets.
• A well-trained and grounded SDR team.
• Robust key performance indicators (KPIs) to help you improve your sales progress.
In some cases, you can get monthly credits on fees if the managed sales service provider doesn’t meet your agreed sales goals.
8. Effectively Manage & Reduce Your Risk Profile
Many risks involved with developing and managing sales teams are eliminated by outsourcing sales teams, e.g., the risk of a wrong hire.
If you wish to grow into new territory, employing a local supplier can be beneficial because they are familiar with the local regulations, economics, business norms, and possible threats.
9. Provide Data to Help Improve Your Sales Revenue
Some advanced outsourced sales team providers have a data analytics platform that helps mark prospects and high-quality customers. Additionally, the platform collects data that you can leverage for better marketing decisions.
Partnering with such an advanced managed sales provider grants you access to this gold data that you can adopt to improve your margin and sales revenue.
Outsourcing sales is a cost-effective strategy for any startup to reduce sales costs while maintaining quality and the knowledge of SDRs and their managers.
Additionally, you’ll access the latest sales techniques and their advantages in market penetration and positioning. Also, it aids in creating new approaches and evaluation of market response to a new item.
You can quickly upscale or downscale depending on the current business environment, especially in this pandemic & post-pandemic era.