Did you know that a sales method called “inside sales” has been attracting attention in recent years? Due to the influence of changing times and the environment surrounding them, it has attracted attention, and many companies and businessmen are working on introducing it. If used properly, it will not only lead to the development of new customers, but also lead to improved operational efficiency and customer development, which will greatly contribute to the improvement and development of business sales.
In this article, we will provide an overview of inside sales, the background to its increasing attention, the benefits of introducing it, and the key points for successful inside sales. If you are thinking of further developing your current business, please read this article and use it as an opportunity to develop your own business.
What is inside sales?
Many people involved in business have probably heard of it, but many may think, “I kind of know the words, but it’s difficult to explain.” First, I will explain the meaning and overview.
Non-face-to-face sales activities for prospective customers
Inside sales is a sales process that refers to sales activities conducted non-face-to-face with potential customers. Unlike the general sales method of visiting customers and conducting business negotiations directly, this method uses non-face-to-face contact methods such as email, phone calls, and online meeting tools.
Inside sales began in the 1990s in the United States, where it was established as a professional career, and Japan gradually began to adopt inside sales methods from around 2005. The introduction of this technology is currently being promoted due to a variety of factors, including the impact of the coronavirus on the business industry and the shrinking workforce due to the declining birthrate and aging population.
Inside sales allows sales activities to be carried out online from the office or home, allowing for a speedy approach and efficient sales activities. You can also use email and phone calls to communicate with customers with low prospects, increasing your chances of closing a deal. Additionally, for customers who would like to hear directly from them, we can connect them with field salespeople and lead to face-to-face business negotiations. It can be said that incorporating inside sales has a significant impact on improving operational efficiency and sales.
Difference from field sales
Field sales generally means “outside sales,” and is a sales method in which the salesperson engages in face-to-face sales activities with customers, and is in charge of everything from proposal activities to business negotiations and receiving orders. The main difference between inside sales and field sales is whether the communication is face-to-face or non-face-to-face. However, there are many other differences, and there are advantages to both.
In field sales, salespeople visit customers or meet with them directly to conduct business negotiations, so you can expect high-quality business negotiations by being able to flexibly change your approach to suit the atmosphere of the situation. However, it costs time and money due to travel time, and it is necessary to create a schedule that includes business meetings + travel time, so there are concerns that it may be difficult to use time efficiently.
Inside sales involves conducting sales activities using online conferencing tools, etc., which has the advantage of eliminating travel time, allowing more time for business negotiations, and making appointments more efficient. However, it is possible that there will be less close communication with customers, and relationships of trust may become weaker.
Difference with teleappointment
Tele-appointment is a sales method that involves calling customers to obtain appointments for visits or business negotiations. Teleappointments are often carried out primarily for the purpose of developing new customers, and developing new customers is an essential activity for companies to increase sales, and teleappointments play an important role in this.
To summarize, teleappointments are also a type of inside sales. While tele-appointments are a sales method with the sole purpose of “obtaining appointments over the phone,” inside sales uses a variety of sales methods, including tele-appointments, to build relationships with prospective customers and increase prospects. Each company will be configured to suit its own objectives, such as setting up business negotiations with customers.
Types of inside sales
There are two main types of inside sales:
SDR (sales development representative)
SDR is an acronym for “sales development representative” and is also called “reactive sales.” This is a method of approaching customers who have mainly made inquiries. For example, you will approach customer actions such as filling out an inquiry form from your homepage or making inquiries from your company’s SNS. Since you respond to customers who have made inquiries about the marketing measures your company has implemented, it becomes a kind of inside sales where you are “waiting,” so it is also called the “PULL-type” sales method.
Customers who take action can be said to be in a highly reliable state, as they already have some level of interest in your company or are highly motivated to use your services. Therefore, it will be necessary to plan the timing and make contact at the appropriate time before the fever cools down.
BDR (business development representative)
BDR is an acronym for “business development representative” and is also called “new development sales.” This is a way to approach them even if there is no action such as inquiries. For example, we directly approach specific customers using telephone calls or DMs, aiming to obtain business negotiations with them. Since the approach is taken with proactive actions, it becomes an “aggressive” inside sales method, which is why it is also called the “PUSH type” sales method.
Since BDR approaches customers first, the customers they deal with may not be aware of the company or have low purchase intent, so it takes time to cultivate customers. However, because you can directly approach the companies you are targeting and the industries you want to focus on, you may be able to expect great results.
Why inside sales is attracting attention
Inside sales has a major impact on a company’s sales activities, and many companies and businessmen are working on introducing it. It can be said that the reason why it is attracting attention is related to the following trends of the times.
The working environment has changed significantly, including telework.
In recent years, the working environment has changed significantly, including telework, due to the impact of the new coronavirus and work style reforms. Businesses that used to be done at the office are now being carried out from home, and even sales activities have become mainstream. Customers no longer need to go to stores, and the burden on salespeople is also reduced. For companies and businessmen, it can now be used more as a point of business development.
In addition, conducting sales activities online has improved operational efficiency, allowing companies with a shortage of human resources to set up their systems without increasing staff. What used to be done face-to-face can now be completed online, reducing the burden on salespeople and bringing benefits in many business situations.
Workers’ awareness of time has changed
Another factor may be a change in the way workers think about time. These days, we often hear the word “Taipa”, and “Taipa” is an abbreviation for “time performance”, which refers to “results and effects based on the amount of time spent.” When a person feels that a highly satisfying experience has been obtained in a short amount of time, the behavior is described as “Taipa is good”.
Originally, in business settings, emphasis was placed on working efficiently without wasting unnecessary time. In recent years, the development of web services and AI has become remarkable, and there are many tools that utilize them to further improve efficiency. Against this background, “Taipa’s sophisticated work style” is once again attracting attention.
With the spread of remote work and online meetings, companies and businesspeople are forced to be conscious of self-management of their private and working hours and efficient ways of working to avoid wasting time. Under such circumstances, increasing attention is being paid to ways to improve work efficiency and improve productivity with less labor.
6 benefits of introducing inside sales
Inside sales is attracting attention due to the influence of changing times and the background surrounding it, but its introduction brings many benefits. Here we will explain six benefits.
Expansion of business scope
Utilizing inside sales will lead to expanding your sales scope. When making face-to-face appointments and business negotiations with potential customers, you can only meet with one person at a time, which limits the number of appointments and business negotiations that can be held in a day. Also, if you have to do everything by yourself, such as setting up appointments, it can be extremely burdensome.
Inside sales involves approaching customers online who have made an inquiry from a website, etc., and proceeding with business negotiations without visiting the customer directly, so the time taken to make an appointment and travel to the business negotiation, etc. You can move without considering it. In addition, by conducting business online, you will be able to develop your business regardless of location, so you will be able to expand your business nationwide. It is possible to take action on customer groups that have been difficult to interact with in the past.
Improved work efficiency makes it easier to achieve results even with a small number of people
By approaching customers without visiting them directly, it is possible for one person to handle multiple potential customers. In addition, you can check which customers have a high probability of closing a deal and conduct sales activities efficiently, leading to more efficient operations. The number of human resources required for blind sales can be reduced, and the number of business meetings per day can be increased compared to before, making it easier to achieve results even with a small number of people.
Continuously approach potential customers
Inside sales does not just carry out sales activities, but it is possible to efficiently implement a continuous approach.
Unlike individualized sales activities, it is possible to see the status of a large number of potential customers across the board, making it easier to prioritize and approach them at the optimal timing while making proposals tailored to the consideration stage. You can. In addition, by collectively managing acquired customer data, it is possible to carry out continuous approaches such as direct mail and measures to maintain relationships.
You can efficiently train even customers with low prospects.
Another great benefit is that you can efficiently train customers who are unlikely to make a deal right away. Not all customers have a high chance of closing a deal, and of course there are some customers with a low chance of closing a deal. By utilizing inside sales, it is also possible to develop promising prospects.
“Lead nurturing” is a marketing method that increases a prospective customer’s desire to purchase and leads to a business negotiation or purchase of a service. Generally, companies often focus on customers who can lead to immediate sales. As a result, there are many cases where customers who say they will consider it in six months or a year are put off and are left out. At first glance, this loss may seem trivial, but when considering long-term business development, it becomes a huge opportunity loss. If you nurture these missed customers and continue to build relationships with them, they may ultimately contribute significantly to your business’s sales.
Reduce operating costs
Improving efficiency and conducting non-face-to-face sales will also lead to reduced sales costs. Traditional face-to-face business negotiation methods and tele-appointments required a large number of people, but by introducing inside sales, work efficiency has improved and work can be done even with a small number of people. It is possible. As a result, costs can be reduced.
In addition, since it can be conducted without face-to-face contact, it is possible to reduce time spent on non-business negotiations such as travel time, as well as transportation costs and costs for appointments such as cafes, so it is less time-consuming and costly. It also reduces costs.
Being able to keep costs down is a big advantage for businesses where the unit price of products is not very high. If the unit price of your product or service is not high, face-to-face sales will be too expensive. A method that allows you to engage with more customers with fewer people is a good match.
Can accommodate diverse work styles
In recent years, an increasing number of companies have introduced telework due to the impact of the new coronavirus and work style reforms. As telework increases, individuals have more options for how to use their time, and more and more people are taking on side jobs in addition to their main jobs.
Conducting inside sales, which can be done from home, will lead to respect for people who want to build their own lifestyles, including work, and those who want to advance their careers through side jobs, and improve human resources. It is thought that this will also lead to security.
Points to note when implementing inside sales
Inside sales has many advantages, but there are some points you should be aware of when implementing it. We will explain the points to be careful about when introducing it.
Relationships with customers tend to be weak
Because customers are approached non-face-to-face, there is a risk that the relationship with customers may become weak. It tends to be difficult to gain trust compared to face-to-face sales, and customers judge whether a salesperson or product is trustworthy based on the impression they make on the phone and the quality of online business negotiations. It is limited to things such as the tone of voice. Therefore, it is necessary to develop ways to easily convey your personality even online, and to strengthen your skills to communicate effectively over the phone.
Sometimes it is not possible to convey the appeal of a product.
If you engage in non-face-to-face contact, such as online, and approach them when their needs become apparent, it is necessary to continually provide information about your company’s products in order to lead to business negotiations. However, since we do not directly explain the product face-to-face, there is a risk that we may not be able to fully convey the appeal of the product.
During face-to-face sales, you can check the customer’s level of understanding and motivation based on their reactions, etc., and devise ways to make it easier to close a contract by changing what to say and the wording depending on the situation. Masu. On the other hand, inside sales involves the use of telephones, etc., so you can’t see the other person’s facial expressions, so you may not be able to convey the appeal of the product in the way you want.
Information sharing within the company becomes more important
During implementation, information sharing within the company becomes even more important. Until a prospective customer’s needs become apparent and lead to a business negotiation, the person in charge will use various methods to reach out to the customer. It is extremely important to share information with the person in charge of actually conducting the negotiations, such as what kind of efforts were made and what words were used that led to business negotiations. Neglecting to share information can lead to significant opportunity loss, so be sure to take measures such as using tools that allow you to share information smoothly within your company.
Compatibility changes depending on product and customer
There are some products that are not suitable for inside sales, such as high-priced products and complex services, so it is important to understand that the compatibility will change. Also, depending on the customer, there are people who absolutely want to listen to the conversation face-to-face. Please note that some people and products may not match.
Four points for successful inside sales
Introducing inside sales can lead to improved business efficiency and sales, but simply implementing it will not maximize its effectiveness. Here are four key points to success.
Establish a system for the department in charge
First, you need to decide where in your sales operations you want to introduce it and set up a system for the department in charge. This is because you need to set up a system based on the products and services you want to sell, the scale of field sales, and the cost of implementation. In some cases, the entire process is carried out, from acquiring and nurturing potential customers, to conducting business negotiations, and after-sales follow-up, while in other cases, only acquisition is carried out.
There is no one system that is better than the other, but the system that is suitable for each company will change depending on the current scale of each company and the products they want to sell. For example, if you are a start-up company that operates with a small number of talented people, it would be a good idea to have a system that focuses only on approaching potential customers and consistently carries out all sales operations. On the other hand, if a company has a large number of sales personnel and can deploy multiple people, it may only acquire the personnel, or carry out everything from acquisition to training, and then leave the rest to field sales. It would be a good idea to have a division of labor system. This makes it easier for inside sales personnel to concentrate on their assigned tasks, which may lead to better results.
Preparation of sales support tools
If you are going to introduce it, it is essential to have sales support tools in place. Sales support tools are IT tools mainly used for customer management and data analysis. For example, a typical tool needed for inside sales is a tool that allows you to centrally manage customer information. If employees within a company manage customer information separately, it will be extremely inefficient and there is a risk that information that should be shared may not be shared. By centralizing customer information, you can not only manage the entire process from lead acquisition to nurturing and receiving orders, but also create a database of information. Many of the tools are high-performance and can even be used as your company’s core system, so be sure to take advantage of them.
Strengthen cooperation with field sales
If you conduct inside sales, you can expect further business development by further strengthening collaboration with field sales. By sharing information about customers you have interacted with with field sales, subsequent business negotiations and follow-up are more likely to proceed smoothly. The more accurately you convey information, such as the customer’s concerns about their current situation and what they want to know, the easier it will be for field sales to engage with the customer, as they will be able to anticipate how to conduct business negotiations and phrases that are tailored to the customer.
Set clear KPIs
It is also important to clearly set KPIs for the final goal. KPI is an acronym for “Key Performance Indicator”, which means “Key Performance Indicator” in Japanese. This is an indicator to measure whether each process leading to the final goal of the business is being appropriately achieved. Generally, indicators are quantitative, and by setting them, it becomes possible to clarify the actions that should be taken and to smoothly improve operations. Commonly used items include:
Inside sales can also be outsourced to an agency.
Although there are many people who would like to engage in inside sales to further develop their business, they think that it would be difficult to do it in-house due to the specialized knowledge and know-how. However, what is useful for such companies is an agency that can outsource inside sales operations. Here we will explain the points to consider when requesting an agency.
Clarify your company’s issues and decide on an agency
When requesting an agency, clarify your company’s issues, decide on the services you are looking for, and then choose an agency that is suitable for those needs. For example, if your goal is to acquire new customers, it would be best to choose an agency that has an extensive list of targets and provides services such as setting up and closing business negotiations.
Check the agency’s track record and areas of expertise.
Agency companies differ in their areas of expertise and the know-how they can provide. Therefore, be sure to check their track record and areas of expertise. For example, if you have a track record of doing business with an industry similar to your own, they may be able to understand your company quickly, and they are likely to have the know-how to quickly achieve results.
Be able to frequently share reports on sales activities
Since inside sales are mostly conducted online, it tends to be difficult to visualize business activities when outsourcing to an agency. If the agency continues to conduct business negotiations with low accuracy, it will not lead to results and the cost-effectiveness will be poor, but since it is online, it is not possible to check this. Have your agency frequently report on their activities and share information such as KPIs from time to time.
summary
In this article, we have explained the overview of inside sales, the reasons why it is gaining attention, the benefits of introducing it, and the key points for success. More and more companies are introducing inside sales as a new sales method, and it is attracting a lot of attention. It is a sales method that many companies can use to improve their sales efficiency if used properly. If you are considering introducing it, it is extremely important to be aware of things like organizing your department, developing sales support tools, and setting clear KPIs in order to achieve maximum effectiveness. If you are a business owner who would like to further develop your current business, please try introducing it and use it as an opportunity to develop your business.