Sales Outsourcing; The New, Profitable Trend

For decades, the finance directors of a lot of companies have been complaining that the cost of making a single sale has been rising steadily, and statistics provided by the government have continually shown a wide skills gap in the sales sector. Markets have become more volatile, and the power wielded by customers has vastly increased. Added to the fact that the number of competitors that a company has to do battle with increases on a daily basis, it is clear that the challenges of designing and implementing an effective sales process have never been so diverse and complex.

When the present sales processes become redundant, whether as a result of high cost, difficulty to resource, or unresponsiveness to change, most business organizations usually resort to outsourcing. The utilization of information and communications technology is a very important and vital part of any business’s activities, but due to a number of factors, many organizations find it better to outsource it. In the meantime, a Deloitte global outsourcing report released in 2012 showed that only 11% of companies are into the outsourcing of sales and marketing. In fact, the outsourcing of sales has been referred to as a slow-moving market.

Despite that, certain sales activities are often outsourced. For example, Kraft made use of CPM, a leading sales outsourcing organization, to boost sales when it launched its Tassimo coffee machines and Reckitt Benckiser also used CPM in a sales campaign when it launched its range of Finish dishwater tablets.

In the business-to-business sectors, the focus is largely on lead generation and qualification, as was seen when O2 began using the telemarketing company Great Guns. The telemarketing company stated that the lead generated by it for American Express have delivered more than £83 million in new business for American Express since 2010. In this sector, it is common to see companies using sales outsourcing to break into new markets, due to the fact that the company they are outsourcing to will have better knowledge and experience in that market, thereby making any campaigns much more effective.

Over the last few years, sales outsourcing is still a relatively underutilised service when compared with other business processes that are routinely outsourced. Many sales directors seem to be of the opinion that sales outsourcing may lead to losing control of the customer experience. On the other hand though, sales outsourcing might actually reduce the risks faced by organizations due to their quality management being as robust as their performance management.

The number of sales outsourcing consultancies has increased in recent times, as has the amount of sales that are generated for client companies. These statistics show that while the change will not be an overnight one, it is certainly coming and companies who get on the train soon will surely reap a lot of the benefits in the near future.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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