Inside Sales Market Update
Inside sales is growing 300 percent faster than outside sales.
XANT CEO & Founder David Elkington kicked off the Inside Sales Virtual Summit with an industry update based on the 2013 Inside Sales Market Size Survey.
A new sales model is emerging. It’s not an evolution, it’s a revolution. It’s fundamentally different. It requires different skills and some of the old-school field reps are struggling to make the transition to the new sales model.
Other industries have experienced similar revolutions. Manufacturing is just one example. Many products were originally made by hand.
Then the assembly line, interchangeable parts and robotics completely changed the game. We will never go back to the old way because the new tools are so much more efficient.
‘We’ve got to think differently’
Winning is about generating revenue as efficiently as possible. Just like in the movie “Moneyball,” your goal should be to get on base and create a predictable sales stream without busting your budget.
To do this, you must think differently. That’s why data trumps intuition for today’s most successful sales leaders.
Major corporations are catching this vision. Companies like ADP, IBM, HP and Google are deploying massive inside sales departments. This shows that the industry is ready to explode. It has “crossed the chasm,” to steal a phrase from the respected author Geoffrey Moore.
How fast is inside sales growing?
Inside sales is growing 300 percent faster than outside sales, according to the 2013 Market Size Survey. Companies are turning to inside sales teams to drive revenue at low cost.
Fundamentally, organizations are transitioning away from field reps and are spending more time selling remotely. The adoption rate varies by industry. Advertising and PR already rely heavily on inside sales, while manufacturing companies have been slower to make the transition.
When you look at the aggregate data for all industries, outside sales is consistently losing ground year after year.
The future of sales is inside sales. But why?
Salesforce.com CEO Marc Benioff explains in his book, “Behind the Cloud,” that inside teams can produce high close rates at one-third the cost and in one-third the time as traditional sales teams.
Executives love inside sales because it’s cheaper and faster.
Customers love it because it provides more flexibility for them as buyers. It doesn’t consume half your day to meet with salespeople. You can watch a half hour product demo instead.
And reps can still earn six-figure incomes without having to travel constantly.
Everybody loves the new inside sales model except for those entrenched in the old regime.
Join the revolution
An entire industry of technology providers is emerging to serve the companies that are taking advantage of this trend. Major players are focusing on segments like lead generation, email, CRM, data, analytics, content management, training and compensation.
For example, XANT has developed a suite of products to increase the speed and effectiveness of sales teams.
- PowerDialer for Salesforce enables reps to make more calls and call the right people at the best times.
- LocalPresence improves response rates by allowing you to show a local area code to more of your prospects.
- PowerStandings keeps your reps engaged with gamification.
Are you ready to join the inside sales revolution? If you’re in, you have to be all in.
- Xant Team