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Inside Sales vs Outside Sales: How Are They Different?

Inside sales: Definition

Inside sales refer to selling products or services over the phone or through electronic communication, such as email or video conferencing, rather than through face-to-face interactions in a physical setting. 

Inside sales representatives typically work in an office environment and use technology to communicate with and sell to customers remotely. This can include cold calling, following up on leads, and closing deals.

Outside sales: Definition

Outside sales, also known as field sales or direct sales, refers to selling products or services in person, typically away from a fixed retail location or office. Outside sales representatives travel to meet with potential customers, demonstrate and promote products or services, and close deals on the spot. They may work independently or as part of a sales team and are often responsible for managing their own sales territories and meeting sales quotas.

Inside sales jobs

Inside sales jobs involve selling products or services over the phone or through electronic communication, such as email or video conferencing, rather than through face-to-face interactions in a physical setting. Some examples of inside sales jobs include:

  • Inside Sales Representative: They make outbound calls to potential customers, follow up on leads, and close deals.
  • Telesales Representative: They sell products or services over the phone, typically to businesses or other organisations.
  • Business Development Representative: They generate leads and sales opportunities through outbound calls, emails, and other forms of electronic communication.
  • Account Manager: They manage relationships with existing customers and work to upsell or retain their business.
  • Sales Development Representative (SDR): They focus on identifying and qualifying potential sales leads and then passing those leads along to a sales team for further follow-up.
  • Virtual Sales: Same as inside sales but working remotely from home or another location.

Inside sales jobs can be found in various industries, including technology, software, healthcare, finance, and more.

Outside sales jobs

Outside sales jobs involve selling products or services in person, typically away from a fixed retail location or office. Some examples of outside sales jobs include:

  • Regional Sales Manager: They manage a sales team and are responsible for developing and implementing sales strategies to meet revenue goals within a specific geographic region or territory.
  • Sales Engineer: They provide technical expertise to customers and help them understand how a product or service can meet their specific needs.
  • Sales Consultants: They help customers identify and solve problems by recommending products or services that meet their needs.
  • Territory Sales Representative: They are responsible for developing business within a specific territory, which can include identifying and targeting new customers and maintaining relationships with existing customers.
  • Route Sales Representative: They are responsible for selling and delivering products to customers along a specific route or in a designated sales territory.
  • Field Sales Representative: They are responsible for selling products or services to customers in a specific geographic area, often working independently and travelling to meet potential customers.

Outside sales jobs can be found in many industries, including manufacturing, healthcare, automotive, technology, etc.

Responsibilities of inside sales representatives

The responsibilities of inside sales representatives can vary depending on the company and industry but generally include the following:

  • Making outbound calls to potential customers to generate leads and interest in products or services.
  • Following up on leads and researching to identify potential customers and understand their needs.
  • Presenting products or services to customers and addressing their questions or concerns.
  • Negotiating prices and closing deals over the phone or through electronic communication.
  • Building and maintaining relationships with existing customers to increase sales and customer loyalty.
  • Meeting or exceeding sales targets and quotas.
  • Recording and maintaining accurate customer and sales data.
  • Participating in training and professional development to stay up-to-date on industry trends and advancements in sales techniques.
  • Collaborating with other departments such as marketing, customer service and product development to improve customer satisfaction and drive sales.
  • Utilising customer relationship management (CRM) software to track leads, manage customer data and forecast sales.

Inside sales representatives may also be responsible for providing customer support and answering any questions or concerns customers may have after the sale.

Responsibilities of outside sales representatives

The responsibilities of outside sales representatives can vary depending on the company and industry but generally include the following:

  • Identifying and targeting new customers to generate leads and sales opportunities.
  • Meeting with potential customers to demonstrate products or services and address any questions or concerns they may have.
  • Negotiating prices and closing deals in person.
  • Building and maintaining relationships with existing customers to increase sales and customer loyalty.
  • Meeting or exceeding sales targets and quotas.
  • Managing a sales territory and creating a sales plan to maximise revenue and growth opportunities.
  • Recording and maintaining accurate customer and sales data.
  • Participating in training and professional development to stay up-to-date on industry trends and advancements in sales techniques.
  • Collaborating with other departments such as marketing, customer service and product development to improve customer satisfaction and drive sales.
  • Utilising customer relationship management (CRM) software to track leads, manage customer data and forecast sales.
  • Travelling to meet with customers in different locations and sometimes overnight stays to attend trade shows, conferences or other events.

Outside sales representatives may also be responsible for providing customer support and answering any questions or concerns customers may have after the sale.

Tools used in inside sales jobs

Inside sales representatives use various tools to help them effectively communicate with and sell to customers. Some standard instruments used in inside sales jobs include:

  • Customer Relationship Management (CRM) software helps sales reps manage and track customer interactions, leads, and sales data in one centralised location. Salesforce, Pipedrive, Hubspot, Zoho, Microsoft Dynamics, and Salesmate are some examples of CRM software.
  • Sales enablement software helps sales reps access the information and resources they need to effectively sell a product or service. Examples include Outreach, ToutApp, and DocSend.
  • Communication tools: Inside sales reps use various tools to communicate with customers, including email, phone, video conferencing, and instant messaging. Examples include Zoom, Google Meet, Skype, Slack, and WhatsApp.
  • Lead generation tools: Inside sales reps use tools to help them find and qualify leads. Some examples include LinkedIn Sales Navigator, DiscoverOrg, and Leadfeeder.
  • Sales analytics tools: Inside sales reps use tools that help them track and analyse their sales performance, such as Salesforce Analytics, Tableau, and Mixpanel.
  • Marketing automation software: Inside sales reps use this type of software to automate repetitive tasks such as email campaigns, lead nurturing, and to score. Examples include Pardot, Marketo, and Infusionsoft.
  • Sales training and coaching software: Inside sales reps use software to help them improve their sales skills and stay up-to-date on the latest sales strategies. Examples include SalesHood, Gong.io, and CloserIQ.
  • Sales forecasting and pipeline management tools: Inside sales reps use software to help future forecast sales and manage the sales pipeline, such as Forecast, Hubspot Sales, and Pipedrive.

Tools used in outside sales jobs

Outside sales representatives use various tools to help them effectively communicate with and sell to customers. Some standard instruments used in outside sales jobs include:

Customer Relationship Management (CRM) software helps sales reps manage and track customer interactions, leads, and sales data in one centralised location. Salesforce, Pipedrive, Hubspot, Zoho, Microsoft Dynamics, and Salesmate are some examples of CRM software.

Sales enablement software helps sales reps access the information and resources they need to effectively sell a product or service. Examples include Outreach, ToutApp, and DocSend.

Communication tools: Outside sales reps use various tools to communicate with customers, including email, phone, video conferencing, and instant messaging. Examples include Zoom, Google Meet, Skype, Slack, and WhatsApp.

Lead generation tools: Outside sales reps use tools to help them find and qualify leads. Some examples include LinkedIn Sales Navigator, DiscoverOrg, and Leadfeeder.

Sales analytics tools: Outside sales reps use tools that help them track and analyse their sales performance, such as Salesforce Analytics, Tableau, and Mixpanel.

  • Marketing automation software: Outside sales reps use this type of software to automate repetitive tasks such as email campaigns, lead nurturing, and to score. Examples include Pardot, Marketo, and Infusionsoft.
  • Sales training and coaching software: Outside sales reps use software to help them improve their sales skills and stay up-to-date on the latest sales strategies. Examples include SalesHood, Gong.io, and CloserIQ.
  • Sales forecasting and pipeline management tools: Outside sales reps use software to help future forecast sales and manage the sales pipeline, such as Forecast, Hubspot Sales, and Pipedrive.
  • GPS tracking and route optimisation tools: Outside sales reps use tools to help them optimise their route and to track their location, such as Google Maps, Waze, RoadWarrior, and MyRoute.
  • Presentation tools: Outside sales reps use tools to create and deliver presentations, such as Prezi, Canva, and PowerPoint.
  • Digital signature and document management tools: Outside sales reps use tools to sign and manage documents electronically, such as DocuSign, HelloSign, and Adobe Sign.
  • Expense management tools: Outside sales reps use tools to manage their expenses and to invoice, such as Expensify, Xpenditure, and Concur.

Inside sales cycle goals

The goals of an inside sales cycle can vary depending on the product or service sold and the target market and sales strategy. However, some standard plans for an inside sales cycle include the following:

  • Generating leads: Inside sales reps use a variety of tactics, such as cold calling, emailing, and social media, to find and qualify potential customers.
  • Qualifying leads: Once leads have been generated, inside sales reps work to determine which leads are most likely to convert into paying customers.
  • Building relationships: Inside sales reps work to build trust and rapport with potential customers, often through multiple interactions over time.
  • Advising customers: Inside sales reps provide potential customers with information and advice on products or services that best suit their needs.
  • Closing sales: Inside sales reps use various techniques to persuade potential customers to purchase.
  • Upselling and cross-selling: Inside sales reps work to increase each sale's value by offering customers additional products or services.
  • Retention: Inside sales reps work to keep customers loyal and to reduce customer churn.
  • Gathering customer feedback: Inside sales reps use customer feedback to improve products, services, and the sales process.
  • Meeting or exceeding sales targets: Inside sales reps work to achieve or surpass sales goals set by their employer.
  • Continuously learning and developing: Inside sales reps constantly learn new skills, techniques, and strategies to improve their performance.

Outside sales cycle goals

The goals of an outside sales cycle can vary depending on the product or service sold and the target market and sales strategy. However, some standard plans for an outside sales cycle include the following:

  • Identifying potential customers: Outside sales reps use various methods such as networking, research, and lead generation to find and identify potential customers.
  • Qualifying leads: Outside sales reps determine which leads are most likely to convert into paying customers.
  • Building relationships: Outside sales reps work to build trust and rapport with potential customers through face-to-face interactions.
  • Advising customers: Outside sales reps provide potential customers with information and advice on products or services that best suit their needs.
  • Closing sales: Outside sales reps use various techniques to persuade potential customers to purchase.
  • Upselling and cross-selling: Outside sales reps work to increase each sale's value by offering customers additional products or services.
  • Retention: Outside sales reps work to keep customers loyal and to reduce customer churn.
  • Gathering customer feedback: Outside sales reps use customer feedback to improve products, services, and the sales process.
  • Meeting or exceeding sales targets: Outside sales reps work to achieve or surpass sales goals set by their employer.
  • Continuously learning and developing: Outside sales reps constantly learn new skills, techniques, and strategies to improve their performance.
  • Identifying new market opportunities: Outside sales reps look for new opportunities to expand their business and increase sales.
  • Building and maintaining a sales territory: Outside sales reps are responsible for building and maintaining a specific sales territory.
  • Maintaining and updating customer and prospect information: Outside sales reps are responsible for maintaining and updating customer and prospect information, such as contact information and purchase history.
  • Maintaining and updating sales reports: Outside sales reps are responsible for maintaining and updating sales reports, such as sales forecasts and pipeline reports.
  • Networking: Outside sales reps are responsible for networking and building relationships with other businesses and organisations to identify new sales opportunities.

Inside sales vs outside sales: skills

Both inside and outside sales positions require a similar set of core skills, such as strong communication, negotiation, and problem-solving skills. However, there are some critical differences in the skills needed for these two sales positions.

Skills required for inside sales

  • Strong written and oral communication skills to effectively communicate with potential customers via phone, email, and other digital channels.
  • Strong organisational and time management skills to effectively manage many leads and customer interactions.
  • Ability to work independently and manage multiple tasks simultaneously.
  • Strong computer and technology skills, including proficiency in CRM and other sales tools.
  • Vital research and analytical skills to identify potential customers and understand their needs.

Skills required for outside sales

  • Strong interpersonal skills to effectively communicate and build relationships with potential customers in face-to-face interactions.
  • Strong presentation skills to effectively present products or services to potential customers.
  • Strong networking skills to identify potential customers and build relationships with other businesses and organisations.
  • Strong negotiation skills to effectively negotiate deals with potential customers.
  • Strong problem-solving skills to effectively troubleshoot customer issues and find solutions.
  • Strong organisational and time management skills to manage territory and customer interactions.
  • Strong driving skills and ability to cover a large geographical area.
  • Comfort with cold calling, visiting customers and making presentations
  • Inside and Outside sales roles are very different and require different skill sets, but both are important for any organisation's revenue generation.

Inside sales vs outside sales: work environment

Inside sales and outside sales positions have different work environments.

Inside sales representatives typically work in an office or call centre environment, using telephone and computer technology to communicate with potential customers. They may work in a team setting and will likely receive more structured training and support. Inside sales reps can work on a flexible schedule.

Outside sales representatives typically travel to meet with potential customers in person. They may be responsible for a specific sales territory and may be required to travel frequently. They need more structure in their day-to-day schedule, as they have to plan their agenda and route based on their customers' availability. They work in a less controlled environment, where things can change quickly.

Both inside sales and outside sales positions have their pros and cons. Inside sales positions offer more structure and support, while outside sales positions offer more freedom and autonomy. It depends on the individual's preference for which environment they would like to work in.

Inside sales vs outside sales: career, job scope and salary

Inside and outside sales positions have different career paths, job scopes, and earning potential.

Career Path:

Inside sales positions are often considered entry-level and can be a stepping stone to more advanced sales roles. Inside sales reps can move up to senior inside sales, sales management, or even outside sales positions.

Outside sales positions are more senior and often require more experience and qualifications. Outside sales reps can move to sales management or upper-level positions.

Job Scope:

Inside sales positions typically involve generating leads, conducting research, and communicating with potential customers via phone and email. They focus on building customer relationships and closing deals over the phone or through digital channels.

Outside sales positions involve travelling to meet with potential customers in person and building relationships with them face-to-face. They focus on building relationships with customers and closing deals in person.

Salary:

The salary for inside sales positions can vary depending on the industry, company, and location. According to Glassdoor, the average salary for an inside sales representative in the US is around $46,000 annually.

The salary for outside sales positions can also vary depending on the industry, company, and location. According to Glassdoor, the average salary for an outside sales representative in the US is around $60,000 annually. It is generally higher than inside sales positions, as it is considered a more senior role.

It is worth noting that salary is not the only factor to consider when choosing between an inside or outside sales role. Both positions offer unique challenges and rewards, and the best choice will depend on an individual's interests, goals, and experience.

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