Money Manifesto: 5 Benefits of Outsourcing Sales

Business, Financial

Outsourcing is a simple process where a company hands over the responsibility of a given business function to an outside firm or entity. The benefits include reduce costs and better time management over having a full-time position devoted to completing the task. However, does it make sense to outsource something as important as sales? It does, and here are five reasons why.

1. Lower Cost of Sales

Ultimately, outsourcing your sales will reduce your cost of sales. Instead of paying salaries, covering expenses, and insurance for a full-time sales department, your company will forego these costs entirely by relying upon an outside firm. This reduces your costs on every sales transaction, thereby increasing your profit on orders.

2. Better Time Management

Outsourcing allows you to focus on what you do best. It simplifies tasks and allows you to work on more pertinent matters. You can better plan your time and allocate your resources. In addition, sales is not always something that business owners are comfortable with or have experience in. As such, it’s best to leave that responsibility to an outside firm that will hold its salespeople accountable on your behalf.

3. Established Sales Approaches

Outside sales firms also have established sales approaches. They know what works, what doesn’t and they have the ability to alter course if results aren’t forthcoming. They are also better able to allocate internal resources. The key is to choose an outside firm that has experience in your market and has a history of success selling similar products to the same customer segments.

4. Stronger Customer Engagement

Sales isn’t easy in an economy where every company wants the same piece of the pie. However, it becomes a much easier process when you maximize customer face-time. A proven sales firm will make sure your products are always in front of customers. They’ll continually visit customers and provide you with invaluable market data on what’s working, what isn’t, what your competitors are doing and how and when you should adjust strategies. In essence, they become an extension of your company in your market.

5. Easy-to-Understand Analytics and Data

The best firms back up their results with easy-to-understand sales analytics and data. You can then use that date to better improve your products or services and or tweak your customer service approaches. Gathering and amalgamating information from a market is not always easy for companies. However, an outside firm can put that information together so that you can take advantage of the voice of customer (VOC) data emerging from your industry.

It does make sense to outsource sales. However, like all outsourcing decisions, you have to hold the firm accountable for results. Make sure you clearly define what you expect, when results should be forthcoming, and how both of you will adjust course if the results aren’t there.