What is Inside Sales?
Inside sales refers to the sale of products or services by personnel who reach customers through phone, email, or the internet. Sometimes called “remote sales” or “virtual sales,” it allows sales representatives to work indoors, often from a call center or company office. These sales activities may be conducted in-house or outsourced to a third party.
Inside sales can be contrasted with outside sales, where representatives meet potential customers face-to-face.
Key Takeaways
- Inside sales involve selling products or services via phone or online.
- Traditional outside sales rely on in-person meetings.
- Combining inside and outside sales strategies can improve efficiency and sales.
- The trend of buying goods online or over the phone is continually growing.
Understanding Inside Sales
Unlike outside sales representatives, inside salespeople rarely travel. Instead, they proactively contact potential customers through phone calls, emails, and social media campaigns. Many inside sales reps employ strategies like cold calling to identify potential leads. However, incoming calls from prospective customers can also be categorized as inside sales. Companies sometimes outsource inside sales to specialized third-party vendors.
The evolution of telephone sales separated inside sales from outside sales, and the term “inside sales” surfaced in the 1980s. This period saw growth in B2B and B2C high-ticket phone sales. Initially distinguished from telemarketing, inside sales today signifies a sophisticated, strategic approach rather than reading from scripts. By the late 1990s or early 2000s, “inside sales” delineated a clear distinction from outside sales.
In some companies, inside and outside sales teams work together. For instance, an inside sales member might generate leads and set appointments for outside sales representatives. Sometimes, inside sales reps also upsell existing customers by offering additional products or services. Given its effectiveness, the inside sales segment is rapidly growing.
Advantages of Inside Sales
With a rising number of consumers preferring online or phone-based purchases, inside sales enjoy growing relevance. Modern sales technologies and changing consumer habits enhance the intersection of inside and outside sales. Innovations in tech have given rise to the term “sales in the cloud.”
The Role of the Inside Sales Representative
Often, inside sales reps earn a base salary complemented by commissions and performance bonuses. Given the nature of their work, having telemarketing or customer support experience, coupled with good interpersonal skills, is beneficial. One advantage of inside sales roles is the potential for remote work flexibility.
A look at 2021 salary surveys shows that the average base salary for an inside sales representative is around $45,000. However, this can vary by company. Big firms like Oracle Corp. pay an average of $50,565, while others may pay less. Outsourcing inside sales to specialized agents like call centers is also common.
Inside Sales versus Outside Sales
— Inside Sales: Rely on phone calls, emails, and online interactions to connect with prospects.
— Outside Sales: Use face-to-face methods like meetings and booths at trade shows to interact with prospects.
Is Cold Calling Used in Inside Sales?
Cold calling involves reaching out to potential customers who have no prior interaction with the business. This method can be seen as impersonal and has low success rates. However, alongside other sales strategies, cold calling keeps inside sales processes proactive.
Is Inside Sales the Same As Telemarketing?
Telemarketing represents one component of inside sales, focusing on phone or email-based sales and frequently using cold calls. On the other hand, inside sales as a whole involves additional strategies, such as social media marketing, search engine optimization (SEO), and customer relationship management (CRM).
The Bottom Line
Inside sales hinge on professionals leveraging telephones, emails, and online tools to sell products and services from desks in offices, call centers, or homes. They drive e-commerce growth and aid traditional retailers venturing into digital sales. By using integrated sales techniques, companies can maximize efficiency and customer reach.
Related Terms: outside sales, telemarketing, customer relationship management, upsell, e-commerce.
