What Is Inside Sales? Definition, How It Works, and Advantages

The inside sales segment is now the quickest growing section of lead generation, becoming even more prevalent than traditional face-to-face outside sales. Now, let’s say your sales team is currently focused on acquiring new leads instead of closing deals. Sales reps spend a lot of time connecting with prospecting, nurturing relationships, and qualifying leads. The choice between field sales and inside sales largely depends on your business’s specific needs, the nature of your product or service, and your target market’s preferences. Inside sales can be more cost-effective and scalable, suitable for digital or easily demonstrated products. In a world where prospects are bombarded with information and sales pitches, many inside sales reps find that creating unique and innovative outreach strategies to capture attention is essential.

So here’s a breakdown that will help you visualize the structure of an inside versus outside sales team. The rule of thumb when it comes to your sales team is to have one SDR for every two to three AEs. The 2021 Xant.ai report found that outside teams engage in 25% more calls and over 50% more email activities.

What Does an Inside Sales Rep Do?

If a call goes unanswered, a well-crafted voicemail can pave the way for future interactions. Keep it brief, personalized, and intriguing, with a clear call to action that encourages the prospect to return your call. The resilience to bounce back and the persistence to keep trying, even after setbacks, are key to long-term success. The ability to think on your feet and propose innovative solutions to customer problems is what sets top salespeople apart.

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To grow their revenue, many companies invest in quality inside sales reps as highly cost-effective alternatives to face-to-face encounters. Inside sales can bring real value to the consumer and the business if done with careful customization and proper research. I don’t believe there’s a specific vertical, industry, or product where a field sales model is indispensable. But, this doesn’t mean it’s the optimal sales model in the current market. According to our 2017 data, companies that had the majority of outside sales reps had a base salary that was 36% higher than inside sales.

Collaborative team structure

From the core roles that make the inside sales engine run to the fine art of closing deals from afar, we navigate the intricacies of building relationships without face-to-face meetings. Unlike an inside sales rep, a telemarketer contacts prospects at random, reads from a script, and has limited knowledge of the product being sold. While many products don’t require sales reps, high-ticket items like appliances, machinery, and tech products require a more personal touch because they’re higher-cost items. Whatever the case, inside sales offers faster response times to leads because the technology used allows reps to communicate with prospects without traveling. Inside sales can be contrasted with outside sales, where people physically go out and meet potential customers.

What do Inside Sales reps do?

Leveraging email and call templates can streamline your communication process, ensuring consistency and efficiency. The landscape of inside sales is both challenging and rewarding, demanding a set of core skills that enable sales professionals to navigate it effectively. This step, the culmination of the inside sales process, involves negotiating terms and finalizing the sale. It ensures that both parties are satisfied with the agreement and ready to proceed. Demonstrations or detailed presentations highlight the benefits and features tailored to address the prospect’s specific needs and pain points. Inside sales activities enable measuring and tracking more accurate revenue predictions.

From CRM systems to AI and email tracking software, these technologies are crucial for enhancing productivity, improving customer interactions, and driving sales. With LinkedIn being a goldmine for B2B inside sales, outreach automation tools can help personalize and scale your outreach efforts. These tools automate connection requests and follow-up messages, making it easier to build your network and generate leads. These services offer tools and strategies for keeping outreach fresh and effective. They require creativity, market insight, and an ongoing commitment to continuously test new approaches. The sales department should collaborate closely with the marketing department to refine lead generation efforts and ensure a steady flow of high-quality leads.

By the late 1990s or early 2000s, the term “inside sales” was being used to mark a difference between inside and outside sales. Inside sales refers to the sale of products or services by personnel who reach customers through phone, email, or the internet. Other ways to define inside sales are “remote sales” or “virtual sales.” It is called “inside” because what is inside sales these sales reps remain indoors, often at a call center or company office.

For example, having a customer try a piece of machinery or feel the texture of fabrics. Gone are the days when you have to meet with prospects in person to seal a deal. Modern technology enables today’s sales pros to work remotely, ditching the demand to travel. Throughout this article, we’ve mentioned outside sales a few times because it’s the other strategy companies can choose for building relationships with prospects and obtaining more customers. Inside and outside sales are two different sales models, but they have the same goal—to increase sales for the business. An inside sales representative is someone who drives sales for the business by communicating remotely with prospects and customers.

Customers can engage with inside sales reps from the comfort of their own homes or offices, saving time and effort. Cold calling is when a salesperson or marketer solicits a potential customer who has had no prior interaction with the company or salesperson. Consumers tend to dislike cold calling, finding it impersonal and potentially disruptive. As a result, the success rate for cold calling is low, and federal regulations now exist to limit the extent of cold calls including the National Do-Not-Call Register. In 2024, according to PayScale.com, the median base salary for an inside sales representative is about $50,000.

1. By adopting these best inside sales tools, teams can navigate the competitive landscape more efficiently and achieve better results.
2. Of course, it can be difficult for sales reps to work together to close deals without the right technology.
3. With the growth of e-commerce, inside sales involving social media and driving web-based traffic has become a priority for many companies, including legacy brick-and-mortar retailers.
4. For example, B2B inside sales has a longer sales cycle and spends more time on lead qualification than B2C.
5. By leveraging inside sales tactics, the consulting firm secures new clients and establishes long-term partnerships.
6. Small organizations with revenues below $50 million, on the other hand, had the highest percentage of inside sales reps at 47%.

Small organizations with revenues below $50 million, on the other hand, had the highest percentage of inside sales reps at 47%. The tools inside and outside sellers use are so similar (e.g., CRM, email, social media), there’s really no more inside versus outside sales anymore. This type of sales position is a good fit for those who like to manage their own schedules and work independently.

With necessary software, they can predict sales month after month, strategize their sales approach, breakdown sales value into distinct activities, and eliminate unneeded activities. Inside sales representatives are targeting specific businesses and decision-makers. They don’t use a script and are highly trained to know their product inside and out.