Don’t Throw Expensive Reps at the Problem
Revenue growth problems for most organizations can be traced back to the fact that they don’t have enough sales opportunities. Unfortunately, many of those organizations make the decision to throw expensive outside sales reps at the problem with the expectation that those reps will bring in new opportunities. This is a common misconception. The reality is that there should be a greater focus on demand generation so that outside sales reps can be more effective at their job.
Outside Sales Reps Are Closers, Not Prospectors
For a long time, there has been the belief that adding enterprise-level sales reps who will go out into the field to close sales is the answer to the need to generate more revenue. This is especially true for complex sales. It sounds like a great idea. But, outside sales reps are closers, not prospectors.
An allure of outside sales reps is their industry expertise. Even if their expertise in a particular field is limited, their tremendous experience means that they can get up to speed quickly so that they are able to speak to a prospect about a product or service with confidence.
Additionally, organizations believe that enterprise-level sales reps can rely on their extensive list of contacts to narrow down leads and close deals. This may be true for a while. But, every sales rep’s list of contacts is finite. What happens when they reach the end of their contact list? Opportunities dry up quickly. To make matters worse, those sales reps may perceive themselves to be at a level in their career when cold calling is not something that they should be expected to do.
This is an example of organizations investing their money in the wrong end of the sales funnel. By focusing their money on the bottom of the sales funnel, they are banking heavily on the outside sales rep’s ability to close deals. This means that the organization is not focused enough on generating leads through marketing and inside sales. The result is that the inside sales team isn’t consistently supplying the outside sales reps with new opportunities so that those sales reps can get out and do what they do best—engage prospects and close deals. When this isn’t happening, the organization is spending a tremendous amount of money on a plan that is bound to fail in the long run.
Outside Sales Reps Are Expensive
Another reason why it isn’t a good idea to throw sales reps at the problem is that they are expensive. First, because they are industry experts with a high level of experience, they command a large base salary. Add to that a total compensation package with benefits, incentives, and an expense account and you have one expensive sales rep instead of one or more inside sales reps whose job it is to produce qualified leads and acquire new clients.
Visibility Can Be Difficult to Achieve with Outside Sales Reps
Frequently, outside sales reps have their own methods for managing their sales process. Consequently, they are notorious for failing to adopt the organization’s existing CRM system. A less than fortunate truth is that the motivations for outside sales reps may not be aligned with the objectives of the organization. Often, the outside sales rep is focused entirely on production and hitting their numbers while the organization should be focused on maintaining a healthy pipeline. This isn’t a big problem when everything is going well and the rep is hitting their numbers. Everything may be on track for this quarter. But, what about the next quarter?
When a sales rep isn’t using the organization’s CRM, the organization has no visibility into the activities of the sales rep and the status of their sales pipeline. There is no way to hold the sales rep accountable on a day-to-day, week-to-week, or quarter-to-quarter basis. The inside sales team may be creating opportunities. But, management has no way of knowing what the outside sales rep is doing with those opportunities.
It’s Best to Focus on Developing Your Inside Sales Team
Instead of throwing expensive outside sales reps at the problem, it’s best for organizations like yours to invest more in demand generation. Filling your sales pipeline with warm, qualified leads is crucial for sustained revenue growth. And, it is an area in which Acquirent excels. With Acquirent as your partner, you can dramatically increase results in lead generation and new client acquisition because our team of skilled sales professionals are 100% committed to your ongoing success.