Inside Sales: What They Are, How It Works

What are Inside Sales?

Inside sales involve selling products or services through phone, email, or online platforms. This approach is also known as “remote sales” or “virtual sales” because it typically happens indoors, often within a call centre or company office. Inside sales may be handled in-house or outsourced to third-party vendors.

In contrast, outside sales involve meeting potential customers in person.

Key points:

  • Inside sales involve selling via phone or online.
  • Outside sales rely on face-to-face interactions.
  • Combining inside and outside sales can enhance efficiency, with each supporting tasks like lead generation.
  • More consumers are choosing to purchase goods and services through online or phone-based transactions.

Understanding Inside Sales

Inside sales people traditionally do not travel, unlike outside sales personnel. Despite staying in one location, they actively contact potential customers, often through cold calling. Companies may also assign incoming calls from prospective customers to inside sales teams or outsource these duties to third parties.

The distinction between inside and outside sales emerged with the telephone’s rise as a sales tool. In the 1980s, “inside sales” became a term to differentiate telemarketing or telesales from higher-value phone sales common in B2B and B2C practices.

Unlike telemarketers who follow scripts, inside sales reps are highly trained and creative, crafting strategies to sell products and services. By the late 1990s or early 2000s, “inside sales” further distinguished itself from outside sales.

In some cases, inside and outside sales personnel collaborate for efficiency. For example, an inside sales rep might handle scheduling and organising appointments for outside sales, known as lead generation. Inside sales staff may also upsell existing customers by offering additional products or services.

Advantages of Inside Sales

Consumers favour online or phone-based purchases as a means to streamline their lives. Organisations that certify or train inside sales professionals include the Institute of Sales Professionals and Direct Sales Australia. Inside sales professionals in certain industries may also require industry certification or training, such as AFS accreditation with ASIC for inside-sales reps for providers of financial products, insurance, and investment solutions.

Simultaneously, the methods employed by both inside and outside sales professionals are blending. More frequently, outside sales reps are conducting remote sales, while inside sales individuals occasionally venture into the field. This convergence is propelled by the integration of innovative sales technologies and shifts in customer purchasing behaviours and perspectives on sales approaches for products and services. Consequently, a fresh term, “sales in the cloud,” has emerged to characterise inside sales in this evolving landscape.

The Role of the Inside Sales Representative

Internal sales representatives typically receive a conservative base salary along with incentives like sales commissions and performance bonuses. Since inside sales primarily occur via online platforms or phone interactions, representatives may benefit from prior experience in telemarketing or customer support, honing a friendly manner when contacting unfamiliar individuals. An advantage of inside sales is the possibility of working remotely or from home.

Salaries for inside sales reps in Australia can vary depending on the role. According to job portal Glassdoor, the average pay ranges between $57k to as high as $90k, with senior representatives having the potential to earn upwards of $100k. 

FAQs

Difference between inside sales and outside sales.

Inside sales relies on an indoor sales team to promote and sell the company’s offerings through online platforms or phone interactions.

On the other hand, outside sales work is based on face-to-face approaches like client meetings, door-to-door interactions, or physical presence at events like conventions or conferences.

Does inside sales work involve cold calls?

Cold calling refers to soliciting potential customers without any prior interaction between the customer and the salesperson or company. This practice is generally disliked by consumers due to its impersonal and potentially disruptive nature.

Consequently, the success rate for cold calling is notably low, prompting federal government regulations such as the ACMA’s Do-Not-Call Register to limit its scope. In fact, the Register allows members of the public to log in their own Australian telephone numbers to ensure they cannot receive any strange calls or faxes; any attempt for business marketers to communicate with any number in the Register will violate the Do Not Call Register Act 2006, with hefty fines levied.  

Is inside sales the same as telemarketing?

However, despite its drawbacks, cold calling remains one strategy used within inside sales to proactively reach a wider audience.

Telemarketing or telesales involves selling via phone or email, often incorporating cold calling, and represents a facet of inside sales. Overall, inside sales encompasses a diverse array of sales and marketing tools, including social media marketing, mobile marketing, search engine optimisation (SEO), and customer relationship management (CRM).

Conclusion

Inside sales is a dynamic and adaptable approach to sales that offers numerous opportunities. With its focus on remote communication and technology-driven strategies, inside sales is well-suited to the evolving needs of businesses and customers in today’s digital era. Professionals considering a career in inside sales can explore diverse industries, benefit from flexibility and measurable results, and contribute to the growth and success of businesses across the country.

DISCLAIMER: This article is for informational purposes only and is not meant to be official business advice. BARTERCARD has no business interests with any sales company and does not endorse or disparage inside sales as a business practice.

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