Inside Sales vs Outside Sales: Key Differences

Inside Sales and Outside Sales are two distinct approaches to selling products and services, each with unique advantages and considerations. Both have their unique benefits, making it very difficult to choose one. However, learning about the differences between Inside Sales vs Outside Sales can help you choose the right form of Sales for your business.   

Determining which approach is better requires comprehensively understanding their nuances, strengths, and limitations. In this blog, you will learn about Inside Sales vs Outside Sales and choose which is better. Also, explore their benefits to choose the one fit for your business needs.    

Table of Contents      

1) Understanding what is Inside Sales 

2) What is Outside Sales? 

3) Difference between Inside Sales and Outside Sales

4) Inside Sales skills vs Outside Sales skills

5) Inside Sales or Outside Sales: Which one to choose? 

6) Conclusion   

Understanding what is Inside Sales?   

Inside Sales is an sales approach where sales professionals engage with prospects and customers remotely, primarily using digital communication channels rather than meeting them in person. It is a method of selling that relies on phone calls, emails, video conferences, and other online tools for connecting with potential buyers and closing deals.

However, you should remember that Inside Sales is very different from telemarketing. Telemarketing is where the salespeople cold-call potential customers from a file and they read from a script. In Inside Sales there might be some cold calling, but it requires a more creative and strategic approach to carry out selling to Business-to-Business(B2B) or Business-to-Customer(B2C).
 

What is Outside Sales?   

Outside Sales refers to a sales approach where professionals engage with prospects and customers through in-person interactions, typically meeting them at their location or a designated meeting place. Unlike Inside Sales, which relies on remote communication channels, Outside Sales involves face-to-face meetings, product demonstrations, and presentations to build relationships and close deals.    

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Difference between Inside Sales and Outside Sales 

Inside Sales and Outside Sales are two distinct approaches to sales engagement, each with its own characteristics and advantages. Understanding their key differences is crucial for businesses to determine the most suitable strategy for their sales efforts. 

The essential difference between Inside and Outside Sales is the method of contacting the customer. As the name suggests, Inside Sales use telephone, social media, and email to reach prospective customers remotely. In comparison, Outside Sales use the traditional sales method of reaching out to prospective customers in person to get the job done. Now, let's explore the primary differences between Inside Sales and Outside Sales:   

Roles and responsibilities in Inside Sales vs. Outside Sales 

Inside Sales and Outside Sales can be differentiated based on roles and responsibilities, as they require different approaches. Let us begin with understanding the roles and responsibilities of Inside Sales: 

Inside Sales requires building a relationship with the prospective customer. As the customer is outside of immediate reach, it becomes important first to build trust and, at the same time, inform them about the product or service on offer. Inside Sales also requires segregating potential customers by identifying their needs based on the product or service.  

A crucial responsibility of the Inside Sales professionals is to inform the prospective customer of all the details of the product or service. This requires answering all the questions the customer has regarding the product or service and, at the same time, understanding the customer's needs to pitch the appropriate product on offer.  

A part of the Inside Sales professional’s responsibilities requires updating essential information of the customer in sales software. Since the sales process takes time, it becomes important to keep track of the progress with the customer to close the sale. 

When a prospective customer reaches out upfront to enquire about the product or service, it's an inbound opportunity. Customers can use means such as telephone and email to enquire; hence, Inside Sales professionals are required to utilise this opportunity to close the sale by updating the customer with the proper information. 

Inside Sales professionals also require making outbound calls. As a crucial part of the job, outbound calls are aimed at reaching out to prospective customers and following up on existing customers. Since a customer is out of immediate reach in the Inside Sales process, this introduces certain challenges, such as objections from the customer towards the product or service. Inside Sales role requires resolving any such objections in closing the sales. 

On the other hand,Outside Sales professionals require getting in touch with the prospective customers in person; hence, developing and maintaining a relationship with the customer becomes a core responsibility of this profile. Soft skills become essential in building relationships with the customer. Soft skills help connect with the customer, understand customer needs, and provide viable solutions.  

A crucial responsibility of sales professionals in Outside Sales is generating new sales. This can be achieved by following up with the existing customers, which leads to identifying potential customers that fall under the social circle of the existing customer. 

Outside Sales professionals require establishing a sales territory to utilise the sales opportunities effectively. This involves creating a Sales Pipeline of prospective customers generated in time. 

Another crucial responsibility in Outside Sales is meeting targets. These targets are set monthly, quarterly, and annually, upon which the career progress depends. As Outside Sales professionals require contacting the customer in person, they have to get in touch with potential customers at events to set up suitable times and places to pitch the product or service to close deals. 

Outside Sales professionals require demonstrating a solid understanding of the product or service on offer and matching them suitably to the client's needs. The role also requires a strong grip on presentation, which helps convince prospective customers

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Inside Sales skills vs Outside Sales skills 

Inside Sales professionals require understanding customer needs and pain points, an essential skill. Matching customer needs with the product or service is crucial in closing a sale. Inside Sales professionals require creating innovative and effective sales strategies based on multiple factors to improve sales figures. They also require active listening and information-gathering skills, which effectively helps identify the customer's needs. 

In contrast, Outside Sales professionals require demonstrating the product's credibility. Outside Sales profile demands excellent interpersonal skills to interact and positively engage the customer. Since Outside Sales professionals require meeting the customer in person, it leads to travelling frequently to close sales. 

Outside Sales professionals require having good time management skills to prioritise maximum opportunities. Outside Sales professionals also require staying updated with the technology to manage the sales pipeline and presenting the product or service utilising the current technology for creating an effective impact. 

Inside Sales vs. Outside Sales tools 

The essential tool required is a laptop or desktop in Inside Sales. Having a phone with a reliable internet connection is also necessary to follow up with prospective customers.  Inside Sales requires having a Customer Relationship Management document and assists in the Sales Process. Video chat and screen-sharing tools are also crucial to connect with the customer and essential for presentation. Inside Sales also requires tools to manage databases, research purposes, and maintain a social media presence. 

In Outside Sales on the other hand, a tablet is essential to provide presentations to prospective customers at remote places and to fill out sales forms. Having a vehicle is essential to meet with customers for sales appointments. Printed presentation materials, such as brochures and price lists, are also required to engage interested customers. Outside Sales also require carrying product samples, if applicable, depending on the product. 

Since Outside Sales are carried out in open places, convention stands, and banners are required to attract and inform prospective customers. Carrying business cards is also among traditional practices in Outside Sales to exchange with potential customers so they can contact the executive at their convenience.

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Inside vs Outside Sales executive’s salary 

Inside Sales and Outside Sales executive's salary depends on the product the sales executive is dealing with. If the product is of high value, it translates to a higher salary. Usually, Outside Sales deals with high-value products and commission adds up to a higher salary. 

This is why the base salary of sales executives is lower, as the potential for earning more exists through commissions. Let us look at the average salary figures of Inside Sales and Outside Sales executives in certain countries:
 

                                                                                                                                     Source: Glassdoor

Inside vs Outside Sales models 

Sales executive connects with prospective customer via means such as telephone and email in Inside Sales.The goal is to acquire the lead to initiate the sales process. Inside Sales consists of a faster sales cycle, which typically lasts under 90 days. Inside Sales costs less and is a more scalable sales model. 

In comparison, Outside Sales executive has to travel to meet the prospective client face-to-face. The goal is to build a positive relationship to convert leads. Outside Sales model consists of a slower sales cycle, which typically lasts more than 90 days. However, Outside Sales cost more to be operational and are comparatively less scalable. 

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Inside Sales or Outside Sales: Which one to choose? 

When deciding between Inside Sales and Outside Sales, there are several factors that businesses should consider. These factors can help determine the most suitable approach for their specific products, target audience, and market conditions. Let's explore the key factors to consider when choosing between Inside Sales and Outside Sales:    

Nature of the product or service    

Consider the characteristics of your product or service. Is it complex and requires hands-on demonstrations? Or is it relatively straightforward and can be effectively explained through digital channels? Complex products or services may benefit from Outside Sales, while simpler ones may be more suitable for Inside Sales.  

Target audience    

Understand your target audience and their preferences. Some customers prefer face-to-face interactions and personal demonstrations, while others are more comfortable with remote communication. Aligning the sales approach with the preferences of your target audience can enhance customer engagement and satisfaction.    

Sales cycle length    

Evaluate the length of your sales cycle. Outside Sales often involve longer sales cycles, requiring more in-depth interactions and relationship-building. Outside Sales might be more appropriate if your sales cycle is longer and involves multiple touchpoints. For shorter sales cycles, Inside Sales can be more efficient.  

Geographical reach    

Determine the geographical reach required for your sales efforts. Outside Sales may be the preferred choice if your target market is local or regional. However, if your product or service has a wider target market across different regions or even globally, Inside Sales can provide a broader reach more effectively.    

Cost considerations    

Evaluate the cost implications of each sales approach. Outside Sales typically involve higher expenses, including travel, accommodations, and other related expenses. On the other hand, Inside Sales can be more cost-effective, leveraging digital communication channels and eliminating the need for extensive travel.  

Sales team skills and resources    

Assess the sales skills and resources available within your team. Outside Sales require strong interpersonal skills, the ability to build relationships face-to-face and proficiency in conducting product demonstrations. On the other hand, Inside Sales requires engaging and building relationships remotely effectively and excellent communication skills.    

Market conditions    

Consider the current market conditions and trends. For example, if there are travel restrictions or remote work is prevalent, Inside Sales may be the more feasible and effective option. Stay updated with the market dynamics and adapt your Sales approach accordingly.    

By carefully considering these factors, businesses can make informed decisions when choosing between Inside Sales and Outside Sales. It's essential to align the selected approach with the unique product or service requirements, target audience, sales cycle length, geographical reach, cost considerations, sales team skills, and market conditions. A well-chosen sales strategy can significantly impact sales effectiveness and contribute to overall business success.   

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Conclusion   

We hope you read and understood everything about Inside Sales vs Outside Sales. Understanding the differences between them is vital for businesses. Inside Sales offer cost-effectiveness and scalability, while Outside Sales provide personalised interactions and deep market penetration. Choosing the right approach depends on specific needs and goals.  

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