Question

Topic: Strategy

Inside Sales Best Practices

Posted by Anonymous on 4/16/2007 at 4:54 PM ET 2000 Points
I'm building a strategy for a client who is looking to supplement their field sales team with an inside sales team.

My role is to help develop a strategy for getting maximum results from the process.

I've mapped out a very strong strategy that includes using the inside sales team to 1) manage low-volume accounts that the field sales rep doesn't have the time to call on and 2) working with the field sales team to support them in moving prospect through a specific sales pipeline for a handful of featured products.

They like the strategy and I'm confident in it because I've done it before with two other clients -- both projects turned out to be very successful and profitable.

They have asked, though, for me to provide some examples of best practices from other companies who have used insides sales to grow their business. Aside from the fact that I have provided two examples from my own experience, they want the comfort factor of seeing how other companies have used inside sales.

So, with the background out of the way, what I need are some good reference materials showing best practices in insides sales -- case studies most likely. If you can provide a link or share a file with me, it would save me a lot of time.

Additionally, if you have personal experience in this area, I'd love to get your summarized insights posted here.

What are some of the best practices that make inside sales effective for companies between $100 million and $500 million in annual sales and who also have an outside sales force?
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RESPONSES

  • Posted by telemoxie on 4/16/2007 at 5:36 PM Member
    I certainly agree that such a strategy can work, and can help keep the outside sales team focused on the biggest opportunities. My personal and recent experience has been with smaller companies and projects, and so I don't have any case studies in the dollar ranges that you discuss.

    I'd sure like more details (if possible) on the types of products and/or services being sold (e.g. product or service company, direct sales only or also thru partners, national or regional sales, level of "uniqueness" of the offering. For example, if the product is a "unique" offering, prospects will need to be educated before they will budget for the products, the sales cycles will be longer and more complex, and you will need a higher quality person on the phone.

    I would say that, as a general principle, you should focus on the overall efficiency of the combined sales process (which is most likely your intent), rather than focus on the effectiveness of the inside sales team (which your stated question).

    Will you be setting up an in-house program, or are you considering outsourcing the calls? If you are considering outsourcing, I would suggest that you check out The Lead Dogs, who have specialized in this sort of work (as I have) for many years - and they handle projects in the sizes you refer to.
  • Posted on 4/16/2007 at 5:57 PM Author
    Thanks Telemoxie, I've answered your questions below.

    I'd sure like more details (if possible) on the types of products and/or services being sold (e.g. product or service company

    >> It is a product company in the Home Health Care market, selling equimpent to Home Health Care dealers. As such, account managers have an ongoing relationship with their customers. Most territories have more accounts than an outside sales rep can effectively manage.

    , direct sales only or also thru partners

    >>> Direct sales only.

    , national or regional sales

    >>> National sales in the US

    , level of "uniqueness" of the offering. For example, if the product is a "unique" offering, prospects will need to be educated before they will budget for the products, the sales cycles will be longer and more complex, and you will need a higher quality person on the phone.

    >>> The featured products are all fairly uniques and have a complex sales cycle that, indeed, involves a lot of education and consultive selling in terms of helping decision makers understand how the product fits into their business model, and in some cases making the case for a modified business model. Field managers will handle most of the complex selling and ISRs will provide lead qualificaion, process management, and follow-up support.

    I would say that, as a general principle, you should focus on the overall efficiency of the combined sales process (which is most likely your intent), rather than focus on the effectiveness of the inside sales team (which your stated question).

    >>> Definitely efficiency of process is key, but when I say "effectiveness" I mean profit.

    Will you be setting up an in-house program, or are you considering outsourcing the calls?

    >>> In-house program, though I believe in outsourcing in many cases.

    One of the key things I'd like to show is the *role* of ISRs as demonstrated by success in other companies.

    Is it best to use ISRs for:

    Lead generation
    Lead Qualification
    Complete Account Management
    Supporting a Lead Sales Representative (ie field rep)?
  • Posted on 4/17/2007 at 5:34 PM Member
    Well my dad is one of the top sales people of one of the major door companies in the world and he doesnt mind to go after smaller fish as in the end sales are generated using the salesnetwork of the representative.

    Follow up deals were done by the sales force you mention, but care should be taken that the sales rep stays in touch with the customer, although the sales rep should of course keep this in mind himself.

    Cardo AB gets about 30% of its revenues from service sales.
    The company my dad worked with (Dyna Seal) made a similar percentage of revenues from service. Better yet, the margin on service is mostly better than on the first sale.

    I dont think this was really what you were looking for, but maybe you can use it. Still keep in mind that service sales and follow up sales are easier in a market where there are few substitutes for parts. And that the cost of getting a new customer is way higher than keeping your current customers, worse even the cost of getting back customers that turned away from you is higher still.
  • Posted on 4/18/2007 at 12:32 AM Author
    Thanks for your input guys. Kathy, I didn't see anything related to inside sales in the links you provided. Many were about web design etc?
  • Posted on 4/18/2007 at 2:07 PM Member
    ??
  • Posted by telemoxie on 4/18/2007 at 4:15 PM Accepted
    Doug, I have specialized in being an "outside-inside" sales force (inside sales function, but outside the client company) for over ten years, and have spoken with hundreds of sales managers on how to set this up, and have completed about 1500 "projects" (each a small block of time) in a variety of industries (none for companies in the dollar ranges specified in your question).

    I would suggest that, if you compare the high tech marketing and sales process to agriculture, there are similar steps (selecting a field, developing or improving a plant, sowing, cultivating, inspecting, reaping, storing, distributing fruit). The mistake most folks make, in my opinion, is to use an inside force to "inspect" or qualify.

    Unfortunately, the folks recruited for inside sales positions (either within or outside your organization) are often at the bottom end of the pay scale, and at the bottom of the corporate totem pole. The primary skill these folks need is to "recognize opportunities" - but if they can't find a good opportunity for themselves, how will they know how to find a good opportunity for your? The second need they have is to build rapport... but what does a CXO have in common with a traditional "telemarketer" ?

    I believe the best solution is to have the sales force continue to do a limited and focused amount of cold calling and to follow up generated leads (web leads, trade show leads), focused on spotting immediate opportunities (inspection) but to have them work a limited number of accounts (limited by 6-Sigma style 'quality' guidelines), and have the "cultivation" handled by inside sales "partner" supported by marketing (white papers, mail lists, etc).

    I would very much enjoy the chance to talk with you about this in depth outside of business hours (I'm smiling and dialing...). Click my profile, give me a ring. Good luck.
  • Posted on 4/18/2007 at 5:26 PM Author
    Thanks. Telemoxie and trkrug.

    Moxie, I'll take you up on that offer and give you a ring.

    I'm hoping to uncover some white papers or case studies through this report as well as personal experiences.

    Oh, I almost forgot to thank m_haddad17 for an insightful use of punctuation :-)
  • Posted on 4/19/2007 at 1:33 AM Author
    Great post Conrad -- and very helpful.

    Thanks!
  • Posted on 4/19/2007 at 12:07 PM Author
    Dana,

    That sounds like a very close scenario to what I'm putting together. I'll look into that book -- sounds like exactly what I need.

    And I'll also email you.

    Thanks so much!

    Doug
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