Are you wondering what is meant by inside sales and outside sales? Are you interested to know the difference between inside sales and outside sales? This article should help you gain a better understanding about what is meant by inside sales and outside sales, and some of the differences between the two. This article also aims to help you decide which will work the best for you.
What Is Meant By Inside Sales
Inside sales refers to the practice of leveraging technology to help connect with, and get new clients. It also offers the opportunity where it does not require either side to travel. In this digital era, most of the communication is made online.
Many inside sales teams make use of various technologies and communication channels to boost sales. Here are some of the most commonly used communication channels by most of the inside sales teams:
- Social media
- Emails
- Customer Relationship Management (CRM) tools
- Phone calls
- Video conferences
In the past, inside sales teams used cold calling or email marketing as the only channel of communication. But today, it has become more common for insides sales teams to use a combination of various strategies.
Generally, the inside sales team deals in services and products with lower annual contract value, and sells to an individual buyer or a single small buying committee. As inside sales does not require physical presence, geographic growth can create a stronger emphasis into global markets.
What Is Meant by Outside Sales
Outside sales refers to the practice of traveling to connect with and acquire new clients. Outside sales is also known as field sales. In outside sales, prospective and current clients have the opportunity to have a personalized sales experience.
The face-to-face interactions, and in-person meetings offer sales representatives the opportunity to offer more detailed product demonstrations to the prospects. It also gives representatives the opportunity to create more personal relationships with their potential clients. Before the global pandemic, one of the most commonly used outside sales strategies was trade shows.
Now that you know what inside sales and outside sales mean, let’s discuss some of the differences between the two.
5 Differences Between Inside Sales and Outside Sales
Here are 5 differences between inside sales and outside sales that you should know:
- Sales cycle
- Metrics
- Skillset
- Tools
- Sales models
Let’s dive into the details.
SALES CYCLE
Sales cycle refers to the process of converting a prospective client into a buyer, or a paying customer. Sales cycle is defined as the average time taken from the initial point of contact with the lead to closing a deal.
Here are some of the differences in the sales cycles of inside sales and outside sales:
| INSIDE SALES | OUTSIDE SALES |
| Complexity of sales cycle is less | Complexity of sales cycle is more |
| Less stakeholders are involved | More stakeholders are involved |
| Annual contract value is low | Annual contract value is high |
| Sales cycles are short | Sales cycles are long |
METRICS
Metrics play a vital role in helping both the inside sales team and outside sales team analyze what works, and what is not working for them. Sales metrics are used to measure the performance of various aspects.
Here are some of the metrics used to measure inside sales and outside sales.
| INSIDE SALES | OUTSIDE SALES |
| Measured daily, weekly, and monthly | Measured monthly, quarterly, and annually |
| Performance of emails and phone calls are measured | Number of meeting, presentations, or demonstrations are measured |
| Performance of new logos are measured | Revenue generation is measured |
| Pipeline management | Attainment of quotas are measured |
SKILLSET
While hiring an inside sales representative or an outside sales representative, the skills required for both roles vary. Before you hire a sales representative, you should assess the skill sets and personality traits of the individual to find the role that best fits their skillset.
Here are some of the skill sets required for both inside and outside sales representatives.
| INSIDE SALES | OUTSIDE SALES |
| Focus more on prioritization | High situational awareness |
| Less experienced | High emotional intelligence (EQ) |
| Repetition at scale | Business-oriented negotiation |
| Ability to follow instructions | Strategic |
Apart from these, there are a few skills required for both inside and outside sales teams, including:
- Perseverance
- Good confidence levels
- Excellent communication skills
TOOLS
Both inside sales and outside sales make use of various sales tools. Sales representatives make use of different sales tools to achieve their quotas and close more deals.
Here are some of the sales tools that are commonly used in inside sales and outside sales.
| INSIDE SALES | OUTSIDE SALES |
| One-to-many digital automation tools are used | Physical, in-person tools are used |
| Customer Relationship Management (CRM) tools | Customer Relationship Management (CRM) tools |
| Video Conference (Google Meet, Zoom) | Video Conference (Google Meet, Zoom) |
| Phone calls | Phone calls |
| Social media | Social media |
Due to the involvement of cloud computing and mobile devices, some sales tools and technologies used in inside sales have created a great impact in the workflow of outside sales teams. Outside sales teams also make use of tools and technologies that are being used by inside sales teams.
SALES MODELS
Here are some of the differences between the sales models for inside sales and outside sales.
| INSIDE SALES | OUTSIDE SALES |
| Digital channels are used to establish relationships with potential clients | Travel to connect with prospects and connections are made face-to-face |
| Try to close a deal within 90 days or less | Can close deals within 90 days or more |
| Remote selling | In-person interaction prospects |
| Get qualified leads | In-person product demonstration to potential customers |
| Scale with less efforts | Scale with more efforts |
| Must spend less | Can spend more compared to inside sales |
Frequently Asked Questions (FAQs)
1. Why is inside sales better than outside sales?
Here are some of the reasons that make inside sales better than outside sales:
– Inside sales does not require the sales representative’s physical presence.
– Inside sales representatives make about 45% more dials than outside sales representatives.
2. Is inside sales harder than outside sales?
Being into inside sales is a bit hard compared to outside sales. The annual quota attainment that is reached by the sales representatives in inside sales is less compared to that of the outside sales representatives. By implementing the right strategies, and by using the right tools inside sales can be made achievable and easy.
3. What are examples of inside sales?
Some of the examples of inside sales are as follows:
– Does not require the sales representative to travel to meet clients, and close deals.
– Prospecting and selling the product, or service, is done via emails, phone calls, text messages, LinkedIn, or video calls.
4. What is an example of outside sales?
Some of the examples of outside sales are as follows:
– Requires sales representatives to travel to meet clients and close deals.
– Sales representatives cold call prospects to schedule meetings.
– Sales representatives must have face-to-face interaction with prospects.
– Sales representatives must perform product demonstrations to prospects in person.
5. What are the benefits of inside sales?
Here are some of the benefits of inside sales:
– Reduced sales cost.
– Spend more time on selling.
– Increased teamwork.
– Faster response time to prospects.
Wrapping Up
If you have been meaning to learn some of the differences between inside sales and outside sales, this article should have helped you. As you now know the difference between the two, you may also have an idea of what works the best for you. Make sure to implement the one that works the best to boost your sales and grow your business.
If you have been looking for services that can help you boost your sales opportunities, and take your business to the next level, make sure to reach out to us to learn more about our services.
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Samuel Darwin
Samuel Darwin is the President at Demand.me, where he helps businesses do more through SEO and Link Building. As a digital marketing professional, Sam has worked with several Fortune 500 brands across the US, UK, and Australia to improve their online presence.