Sales outsourcing activity across several verticals is high, and it is expected to grow further in the coming years. Companies are always looking for ways to reduce cost of sales operations and improve efficiency and effectiveness. Case studies and industry research have proven that sales and telesales outsourcing helps companies address challenges unique to their business when a sales outsourcing engagement is managed properly.
While not the sole reason, cost reduction remains the number one driver for sales and telesales outsourcing. The right outsourcing partner can increase product sales, provide high ROI, and help the firm achieve its sales objectives. A recent study reported that companies in the consumer goods sector believe that outsourcing transactional sales services was 30 percent cheaper than hiring a direct sales firm. Lower total costs were due to economies of scale and ability of outsourcing firms to adapt to changes in workforce demand.
Many vendors charge fees only if the external sales force closes deals, which means that the provider bears most of the risk. If the outsourced sales team fails to bring in new business, the client owes nothing or very little. Fixed expenses like employee benefits, overhead, infrastructure, technology, and travel expenses are also offloaded to the outsourcing provider.
For maximum savings, some companies choose to outsource sales to third parties in emerging markets to take advantage of low labor costs. Outsourcing sales activities to reduce cost is compelling enough, and many startups and SMBs do so to free up resources for developing new products, expanding the business, and supporting other core activities.
Superior Local/Regional Market Knowledge
Sales outsourcing firms have superior knowledge of and experience with local and regional markets. For example, a U.S.-based software manufacturer planning to introduce a new product in Asia-Pacific is better off working with a sales vendor located in the region instead of building an internal sales force from the ground up. The provider already has experience with the regional market and knows the best ways to connect with decision makers for specific products and services. It has wide industry partnerships and networks that would make it easier to build a leads database from scratch. Through professional representation by an experienced local sales firm, the client’s business also appears larger and more established.
Multichannel Sales Expertise
Companies are getting more business opportunities because of the multichannel expertise of outsourcing firms. A sales solutions provider can help a specialty brick-and-mortar retailer to expand their lifestyle offerings and increase sales by including packaged food products. Companies that lack the resources to participate in multichannel sales work with service providers to capture new categories, formats and territories, as well as gain competitive price positioning. By outsourcing multichannel sales and merchandising, these companies are able to focus on product development and other strategic activities.
Better Conversion Rates
A sales provider specializing in a particular product and market can drive better conversion rates. While conversion tends to be low in all markets, an experienced sales firm knows how to tweak processes to generate high lead volumes and qualify those leads, leading to increased conversation rates over time. Qualified prospects are more likely to want to know more about the product or service. Regular contact among prospects, sales executives, and technical staff builds trust before the sale is closed. The entire process takes several months to complete, but a topnotch sales firm has multiple strategies to improve conversion.
Good sales outsourcing firms don’t rely on one process or tactic to solve multiple problems. They customize the solution based on the company’s unique goals and its product or service. For example, sales outsourcing providers allow a company to ramp up the number of inside sales reps to meet required volumes or reduce the number of field reps as needed. Managers can also hire a single sales executive or a team of consultants for short- and long-term projects. It is much quicker to get your products to market through an experienced sales team than starting an internal team or reorganizing it.
End-to-End Sales BPO
Sales and telesales outsourcing has shifted focus over the years, moving from low-cost, transactional services to more complicated processes. Today, many companies are looking for sales providers that can help them navigate a competitive and rapidly changing market and do more for their business. Some sales executives in larger firms are working with established BPO players for bundled sales solutions that provide not only skilled talent, but also the latest technology and best-in-class processes. However, startups and midsize businesses will continue to work with smaller outsourcing providers that provide traditional offerings and flexible sales solutions. Sales goals within an organization vary, and outsourcing firms understand that diversifying their services and attending to the needs of SMBs are equally important. Providers that focus on providing value are seen to dominate the market.
When properly planned and managed, outsourced telesales typically lead to better results compared with in-house telesales. Telesales is a complex activity that spans multiple geographies and requires the oversight of a sales firm with local and regional market expertise. Outsourced telesales is not right for every company, however, and the success rate of the campaign depends on many factors. Nevertheless, outsourced telesales and telemarketing remains a powerful tool to improve top- and bottom line growth. Here are some benefits of outsourced telesales:
For small and midsize companies, it does not make sense to build a full-time team of telesales reps to run occasional campaigns. Outsourcing telesales to a specialist provider gives companies access to top telesales professionals whenever they need it, without the need to invest in training and support. Larger businesses that have captive centers in offshore locations often outsource part of their telesales activities to offshore providers as well, mainly due to cost savings and economies of scale associated with hiring telesales reps en masse.
Top Telesales Staff
Inexperienced telesales reps can negatively impact the bottom line and potentially damage business reputation and credibility. Customers can usually sense the distress of untrained or entry-level telesales staff, which can lead to calls that are terminated quickly or before the agent has a chance to make a pitch. Experienced telemarketers improvise based on the direction of the call, and they offer solutions and opportunities rather than “selling” the product. Outsourcing to an external firm devoted to telesales means that you get instant access to the best reps with the experience and skill to change tactics based on customer need. External telesales reps are used to working in a results-driven environment with access to the latest technology, allowing them to achieve better results.
Strategic Lead Generation
Any company can get leads, but only professionals can get leads that actually turn into revenues. To be successful, lead generation and qualification must be based on strategic data. This is where a good telesales outsourcing provider has an advantage. They have the tools to get the right data and use it to generate high-quality leads and build a dynamic leads database.
Successful telesales is based on flexible strategy and a flexible sale force. Some projects require one or two telemarketers calling select decision-makers, while others need a group of people to canvass a large number of leads. It can be difficult or impossible to scale up or down internally as needed. A sales solutions provider can change its telesales approach easily in response to need. It can add more telesales reps for a project or deploy one telesales executive to close certain sales. It can also deploy an entire telesales team after hours and during weekends and holidays.
Talk to an expert today. Contact Sourcefit to learn more about the possibilities and opportunities of building your dedicated team of professionals in the Philippines.