5 differences between internal and external sales
While both inside and outside sales models focus on revenue generation, the sales strategy each model uses is different.
Here are five key differences between inside sales and outside sales:
1. Sales cycle duration
Sales cycle length is the amount of time it takes to close a sales deal.
Below is a comparison of the sales cycle length for inside and outside sales models:
A. Domestic sales
Typically, the inside sales model has a shorter sales cycle.
Because?
The inside sales model is commonly used to sell technological solutions that solve simple problems and are not very expensive.
It’s usually easy for an inside salesperson to convey the value of a product’s features that solve a simple problem (such as a simple SaaS product). As a result, a sales rep won’t need to spend a lot of time closing leads, making for a shorter sales cycle.
Also, if the product or service matches a potential customer’s requirements and is not expensive, the potential customer might have fewer reservations about making the purchase.
However, with a low-cost product or service, your profit margins might also be low. And to make a good profit, your in-house salesperson might need to close a more significant number of deals.
B. External sales
The outside sales model typically has a longer sales cycle.
Because?
Outside sales are typically preferred for selling products, services and solutions that are complex and expensive.
When selling complex solutions (e.g. enterprise software), it can be challenging for your third-party salesperson to convey the real value of all the different functionalities of your offering.
Your outside sales staff may need to meet with potential customers in person and walk them through the many features, customization options, pricing tiers, and more.
Additionally, more stakeholders tend to be involved in the decision-making process with an expensive solution or a larger deal. As a result, it will take longer for the belgium telegram data customer to reach a consensus on the purchasing decision.
That is why the sales cycle length in outside sales is generally long.
2. Closing rate
The close rate is the percentage of leads revenue-gene it is a win-win solution for both parties rating customers.
Let’s see how the closing rate of internal sales bw lists and external sales compares:
A. Domestic sales
Inside sales generally have a low closing rate.