The Ultimate Guide to B2B Sales Outsourcing: Pros, Cons, and Best Practices
Business-to-business (B2B) sales outsourcing is a powerful tool that businesses can use to generate leads, reduce overhead costs, boost sales, and improve customer retention. In a 2022 survey of B2B decision-makers by Operatix and Tenbound, over 85% of respondents reported that B2B sales outsourcing is valuable to their company, and almost 70% of respondents reported that outsourced sales reps outperformed their in-house sales teams. Those are some impressive stats! In this post, we’ll explore what B2B sales outsourcing is, the pros and cons of outsourcing your business’ sales efforts, and tips on best sales outsourcing practices to get the best ROI.
What is B2B Sales Outsourcing?
B2B sales outsourcing is a strategy designed to ease the sales workload on internal teams, instead opting to delegate part or all of that workload to an external, third-party company that specializes in sales processes. When a business’ internal sales team isn’t able to maximize sales on their own, outsourcing can be a smart way to boost sales numbers while keeping overhead and labor costs down. Businesses can choose to outsource just one part of their sales process, such as lead generation or appointment setting, or can pass off their entire sales process to the outsourced specialists.
Pros of Sales Outsourcing
Reduced Overhead Costs
Labor and overhead costs are almost always the largest expenses for any business. According to the Harvard Business Review, “outsourcing can reduce administrative costs significantly—and may improve performance in the process.”. Outsourced sales representatives typically cost much less in salary and benefits than internal sales reps. Outsourcing sales also means the business won’t have to pay for overhead costs associated with providing an office for an internal team either, such as office rent, utilities, equipment, supplies, etc. These savings can have a significant impact on the business’ bottom line.
Powered Sales Growth
Outsourcing accelerates company growth by shortening the sales cycle, reducing the amount of time between lead generation and customer acquisition significantly. This is accomplished by implementing the most effective sales strategies while also exploring untapped markets, then nurturing those new connections until they become paying customers and move on down the pipeline.
Systematic Lead Generation
B2B lead generation is where businesses pull in valuable new business customers, so optimizing this process is essential for adequate revenue growth. B2B sales outsourcing agencies specialize in all aspects of lead generation, from identifying qualified prospects to making the initial contact, increasing the chances of securing quality leads that turn into paying customers.
Expertise in Market Fit
An outsourced sales team is like a new weapon in a business’ market research arsenal. Because sales outsourcing agencies spend hours digging deep into the industry they are working in, they can offer valuable insights and a different perspective on market dynamics, helping the business better align their products and services with customer needs.
Ease Internal Sales Team Workload
An overworked sales team is an underperforming sales team. Internal sales teams are often plagued by an ever-growing workload with no additional human resources to pick up the extra responsibilities. This leads to worker burnout, less than ideal sales figures, and shaky customer relations. By outsourcing at least part of the sales tasks, internal sales teams can breathe easier and focus on the highest-value customers and projects.
Expertise in Technology and Data Utilization
Outsourced sales representatives are proficient in using the latest tools and technology to optimize the sales process and manage customer data. The availability of online information along with sales and customer management software gives these sales reps the ability to gather and analyze valid data like never before, generating high-quality leads that seamlessly convert into long-term customers.
Scalability
B2B sales outsourcing is a great solution for businesses big and small. A once small business that only outsourced one step in their sales process might find themselves growing so quickly that they need help with more steps, and that’s easy to accomplish when using a sales outsourcing agency. A quick call or email to explain the expanded need for assistance will be all it takes to scale the outsourcing up to the next level, ensuring that as the business grows, all its moving parts grow as well.
Cons of Sales Outsourcing
Potential Loss of Control & Quality
Having control over the quality of the sales process is hard for many business executives to let go of, especially if they notice an uptick in customer complaints or less than impressive results from the outsourced sales team. Finding an outsourcing agency with values that closely align with the business’ values and clearly communicating quality expectations is the best way to avoid this con.
Dependency
Sometimes B2B sales outsourcing is just a temporary move, at least at first. A business may experience record growth and need to reallocate its internal resources to other areas for a short time, relying on sales outsourcing to cover the gap. However, if this arrangement goes on for too long, the business may lose its internal ability to effectively manage the sales process, instead depending entirely on the outsourced agency.
Risk of Miscommunication
Most B2B sales outsourcing teams work remotely, communicating via email, messaging platforms, text messages, and phone/video calls. These forms of communication don’t come with the benefits and nuances of in-person communication, such as body language and non-verbal cues, making miscommunications more probable. Proactive efforts to prevent such miscommunications are necessary, along with strategic management of any consequences caused by such miscommunications.
Best Practices for Successful Sales Outsourcing
It’s clear that the pros outweigh the cons when it comes to B2B sales outsourcing, so let’s go over some best practices for successfully delegating sales processes to an outsourced team:
1. Be Clear From the Beginning
Be very clear about the goals and expectations for the outsourcing partnership. Include information about core business values, communication preferences, and desired results. Make sure all this information is written down in a place where it is accessible to everyone on the team, such as a shared cloud drive dedicated to the sales outsourcing project.
2. Choose the Right Agency
Look for a sales outsourcing agency that has experience in the business’ industry and a proven track record of success. Ask for references and reports from past projects and follow through by actually contacting past clients of the outsourcing agency for a verbal recommendation.
3. Encourage Effective Collaboration
Be responsive to communication from the outsourcing team, even if it doesn’t align with the set expectations at first. Reiterate those expectations while simultaneously providing timely responses and feedback to the team’s questions and concerns. Encourage other members of internal teams to do the same and praise team members for doing so.
4. Monitor Performance
Review the sales outsourcing team with the same frequency and standards as an internal sales team. Use predefined metrics and performance statistics to determine the outsourced teams strengths and areas for improvement. Communicate these findings with the outsourcing agency and develop an improvement plan to address any weak areas.
5. Evolve & Improve
Improvement should always be a business’ goal, no matter how successful they are. An outsourced sales team can provide a wealth of information that businesses wouldn’t necessarily have access to otherwise. Use this valuable insight to form business practices that grow and adapt with industry trends, customer needs, and regulatory requirements. Once a relationship with a sales outsourcing agency ends, evaluate the successes and failures of the relationship and use that to collaborate more effectively with outsourced teams in the future.
Prioritize Smart, Profitable Growth with B2B Sales Outsourcing
By approaching B2B sales outsourcing with purpose, commitment, and intention, businesses can see explosive growth, a trimmer budget, and improved morale. When done right, B2B sales outsourcing can take a business from performing well to performing phenomenally, all while easing the work burden and stress on internal teams. Review the pros and cons, follow the best practices, and enjoy all the benefits B2B sales outsourcing has to offer!
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Rich Enterprises, Inc. was founded in 1999 with a focus on helping U.S. and Canadian clients find new revenues and opportunities to keep their businesses profitable and strong. We specialize in top-tier B2B Telemarketing Services, including sales outsourcing, lead generation, appointment setting, and more, with expertise working with commercial, mechanical, industrial, and unique boutique clients.
