Inside sales is here to stay

LOS ANGELES, USA: Velocify announced the release of a study conducted by Steve W. Martin, an expert on the complex human nature of business-to-business sales. The study is entitled "The Truth about the Field Sales to Inside Sales Migration Trend"

Martin is the author of the "Heavy Hitter" series and professor at the University of Southern California. Underwritten by Velocify, the study confirms a shift from field to inside sales models, as well as identifies market factors prompting the shift and the top benefits.

Martin said: "It is safe to say that we can expect to see inside sales teams continue to increase in size and number. While there will always be a place for field salespeople, inside sales teams will continue to grow because the economics are often favorable and social and technological transformations are helping to accelerate its acceptance with buyers."

Surveying more than 100 senior-level sales leaders from high technology and business services companies throughout the U.S., and supplementing it with anecdotal information from more than 30 in-depth phone interviews, 46 percent of respondents reported a migration from field to inside sales models within their organization over the last two years.

In addition, respondents signified that this may just be the beginning with the number of companies expecting to derive more than 90 percent of their revenues from field-related sales predicted to decrease dramatically across industries by 2015.

Why are so many companies turning to inside sales?

Three primary market drivers are giving momentum to inside sales. First, B2B sellers feel competitive pressures to cut costs, with 60 percent of respondents citing profit margin as a primary factor driving the migration from field to inside sales.

Second, new technology advancements were cited by 54 percent of the respondents. Advancements like video conferencing, social media, demand gen and marketing automation tools, all make it easier for companies to create customer connections without field interactions.

Third, B2B buyers are becoming more accepting of remote selling processes according to 47 percent of respondents. Buyers use the web to research product information, are more comfortable communicating with sellers via email, phone and web conferencing, and in fact often prefer these methods to face-to-face interactions.

What are the benefits of an inside sales model?

This study reveals a changing perception of the strategic role inside sales performs. The change is due in part by the benefits sales leaders believe the inside sales model provides.

Survey respondents cited many benefits of an inside sales model with 83 percent of respondents highlighting that it is easier to on-board new salespeople and share best practices. Scaling faster was cited as a benefit by 79 percent of respondents.

The ability to drive greater call activity and selling volume was also a top benefit according to 78 percent of survey respondents. The ability to penetrate small and mid-market accounts was cited by 76 percent of respondents.

Furthermore, field salespeople can be costly, and with 74 percent of organizations reporting that fewer than 69 percent of sales teams hit quota, bottom line-focused businesses are seeing cost effective inside sales models as an attractive alternative.

Nick Hedges, president and CEO at Velocify, said: "This study reveals incredible opportunity for progressive sales leaders to identify the sweet spot for inside sales within their overall selling model. Companies that embrace an inside sales model and capitalize on the opportunity will gain a competitive edge in their marketplace."