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Inside Sales Meaning
Inside sales representatives sell products or services by contacting customers via phone calls, emails, and social media. Inside sales executives work inside an office; they do not meet customers in person. For field work, businesses have a separate team that is referred to as outside sales.
In-person meetings and interactions are redirected to field sales representatives. As a result, skills required for inside sales differ from fieldwork. Inside teams have the advantage of remote work options. Due to the growth of e-commerce, inside sales are on the rise providing new vacancies for job seekers.
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- Inside sales employees work inside an office to sell a product or service. They interact with existing customers and potential customers via phone calls and emails.
- Sales require skills like networking, communication, patience, negotiation, perception, spontaneity, creativity, and the art of closing.
- Sales by default is a target-centric work; competition is high. Incentives are the primary source of income for a salesperson. But incentives are directly tied to performance. Thus, there is a potential for exponential growth.
- In 2021, the average remote salesperson in the US earned as much as $62,292 annually.
Inside Sales Explained
In inside sales, the salesperson works remotely—from the office or, in some cases, from home. Every business sells either a product or a service. But to promote that, businesses need marketing. A dedicated sales team maintains direct contact with the customers—target customers, early adopters, existing clientele, and potential customers.
Most sales departments are primarily categorized into two—an inside sales team and an outside sales team. The inside team is provided with a list of customers collated from records. Inside team personnel make cold calls and connect with people via email and social media.
Sales require skills like networking, communication, patience, negotiation, perception, spontaneity, creativity, and the art of closing (deals). These qualities are either considered prerequisites for sales roles or imbibed upon in training.
The inside sales meaning highlights the role of the salesperson—they operate inside the office. After the Covid-19 pandemic, sales underwent a paradigm shift, along with other departments. Before the pandemic, outside sales were prioritized, but Covid-19 restrictions paved the way for increased remote work. After witnessing the benefits of remote sales, firms are more open to remote work.
Now, the inside team interacts with potential customers, and the outside team follows it up by visiting the customer in person. An amalgamation of inside and outside sales is called hybrid sales. It is the most common sales structure (especially after the Covid-19 pandemic). In this framework, the sales team relies on each other for data, lead generation, and closing.
Sales by default is a target-centric work—every company wants to acquire as many customers as it can—competition is high. Sales attract employees using incentives. Unlike other departments, the sales department is inclusive. There is less focus on a salesperson's qualifications, experience, and ability; the numbers speak for themselves. Thus, sales offer the potential for exponential growth.
Like any other department, there is a hierarchy in the sales department as well—the inside sales manager is responsible for quarterly and annual targets. Alternatively, the manager could be divided by regions (geographical location).
Examples
Let us look at some examples to understand remote sales better.
Example #1
A company manufactures bathing soaps. Before 2019, the company had a sales force completely operating on the field—the outside sales team went door to door and shop to shop to sell their product.
After the 2019 pandemic, the company was forced to try inside sales. The firm hired several inside sales executives. The firm was burdened by training costs as well; they trained new employees on how to talk to potential customers and how to make a good sales pitch.
Every salesperson receives a list of customers comprising both existing clientele and potential customers. The inside team makes phone calls, emails, and cold social media pitches.
Under pressure, a salesperson might even resort to unsolicited or abrupt calls. But targets are an indispensable part of this role. Sales personnel work in teams—they are led and monitored by an inside sales manager. The manager is responsible for team performance and results.
Example #2
In a new hospital, the inside team calls a list of people diagnosed with particular diseases and illnesses. These calls inform patients about the new services and facilities on offer. Based on the interaction, patients schedule appointments with the hospital’s doctors.
Example #3
Let us look at another example. An edtech company makes cold calls to parents and guardians based on data collated from schools and coaching centers. The sales team sells online courses for children. Students are categorized based on interests, class, and age.
If a parent shows interest, the caller schedules an appointment with a teacher for a demo class. Thus, the sales department has to work in tandem with other departments.
Inside Sales vs. Outside Sales
- The inside team works from the office—it is a desk job. In contrast, the outside sales team works on the field—mostly out of the office.
- The inside sales specialists are trained to deliver sales pitches online—via calls, emails, and social media. On the contrary, an outside salesperson is trained for in-person communication.
- Inside teams do not meet the clients in person and can even carry out operations from home. This is not the case with outside sales. Naturally, remote work is not a possibility with outside sales.
- Outside sales require a lot of travel. Traveling is not mandatory for the Inside team employees.
- Apart from the basic salary, the inside team does not receive many perks—they primarily work from the office. On the other hand, an outside sales employee receives a generous travel allowance, food & accommodation allowance, etc.
Frequently Asked Questions (FAQs)
Remote sales employees sell products and services via email, phone calls, and social media. They do not meet the customer in person. Primarily, it is a desk job. Employees interact with the firm’s existing clientele as well as potential customers.
In 2021, the average remote salesperson in the US earned as much as $62,292 annually. However, it varies between different sectors depending on the product or service that is offered to customers. Remuneration also depends on the job description and hierarchy. A salesperson majorly earns through incentives that are tied to performance—a small percentage of total sales. In theory, there is potential for exponential growth. On the opposite spectrum, the salesperson cannot afford to perform poorly in the long term.
It is a good option for highly energetic individuals. In addition to salaries, a salesperson can net a substantial amount in the form of incentives. But incentives are tied to individual performance depending on their performance. Sales require communication skills, networking, negotiation, and perception.
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