The B2B Tech Company Guide to Business Growth
Are you looking for the most efficient way to scale your tech company?
There are many avenues you can take to reach your goals, but when it comes to revenue growth nothing has a more immediate impact than increasing your company’s sales.
customer acquisition has it’s own unique challenges to overcome.
B2B buyers are becoming harder to connect with, sales cycles are becoming hard to predict, and business development representatives are becoming harder to retain.
“How do I reduce costs while building a sustainable pipeline of new business?”
The answer is…
Outsourcing sales. But now you probably have a whole new set of questions. So let’s go over exactly what outsourcing sales could mean for your business and discover if it is the right choice for you.
What is an Outsourced Sales Partner?
An outsourced sales partner provides business development experts to acts as an extension of your internal sales team by curating lead lists, campaigning to prospective clients, scheduling appointments, and in some cases, closing deals and onboarding new clients.
When determining what tasks to outsource for your business oftentimes sales development is overlooked. This is under- standing as most businesses hire externally for highly specialized work such as bookkeeping or website development.
On the other hand, sales has traditionally been handled in house as it is directly tied to revenue.
But by taking a look at the statistical evidence and benefits of partnering with an external sales team you will see that the argument for outsourcing is exceptionally favorable
Should B2B Tech Companies Outsource Sales?
In most cases, B2B tech purchases are complex requiring a great deal of consideration, upfront capital, and labor hours to fully commit to a new solution.
Because of this, the buyer’s journey has evolved into a long sales cycle with multiple decision-makers. Revenue leaders seek out outsourced sales partners to improve pipeline performance through their expertise in planning and executing prospecting campaigns that produce results.
As a general rule, yes
So, if you are looking to scale your tech com- pany, break into a new market, or simply incre- ase sales opportunities, then outsourcing part or all of your sales processes can help you meet your goals.
When to Consider Full-Service Sales Outsourcing
We will get into the details surrounding full-service sales outsourcing later in this guide. Just know that while most outsourced sales partners do not offer assistance beyond appointment setting, a select few have the capability of handle the full sales cycle for your company. Based on our clients’ experience, below are the top two scenarios in which full-service sales outsourcing works best.
Tech Companies Based Outside The United States
If you have tried to sell overseas, you know how difficult it can be to bridge the gap over the cultural divide. This is true even for English speaking teams outside North America. Nuances in dialect, values, and business conduct can make a big difference in sales success when campaigning in the US. A sales representative’s ability to build rapport through mutual interest and small talk plays an important role in developing relationships.
Time zones variances can also have an impact on breaking into the US market. The availability of a sales team to quickly respond can greatly influence a prospect’s willingness to further explore your solution.
In fact, sales representatives that engage a prospect within five minutes of receiving a response are nine time more likely to continue the conversation (Invesp).
For tech companies outside North America, an outsourced US based sales team solves these problems and more.
By having boots on the ground where prospects are located your company can build brand confidence and gain market share faster. In addition, the cost savings, which we will explore next, can help you maintain a healthy ROI.
There are a number of hidden costs associated with starting and scaling your tech company. A big portion of those costs revolve around establishing an in-house sales team as they are the driving force behind revenue growth.
Vice President of Sales: $150 - 180k
Prospecting and Nurturing Tools: $100k +
Maintaining a Local Office: $100k +
Given these figures, hiring a fully staffed sales team is not fiscally manageable for many new and scaling businesses. Some of our clients have spent millions of dollars trying to build up their sales department only to have it fall.
Outsourcing sales to a full-service team can drastically reduce the risk of wasting precious resources on a ramp up process that doesn’t gain traction. With an outsourced sales team, each member is knowledgable, professional, and ready to start campaigning in a matter of days rather than months.
By partnering with an outsourced sales firm, you can hire professional-trained business development representatives at a fraction of the cost it takes to maintain your own sales department.
Benefits of Partnering with an Outsourced Sales Team
There are a number of benefits linked to outsourcing sales, but these are the ones that a majority of our clients have expressed over the years.
Reduced Employee Training Cost and Churn
Train and churn, it’s a vicious circle that can make any sales leader feel a bit like Sisyphus. Aspiring sales development representatives (SDRs) are pushed to the top just to watch them roll-off to a new opportunity so the process can start all over again.
Months 1 to 3 SDR completes onboarding and ramp up process
Months 4 to 17 SDR is operating at full workflow capacity
Months 17 to 18 SDR is promoted in or separated from the company
With the annual median salary of an SDR being $76k, we can estimate that onboarding and ramp-up alone costs around $19k per employee. This does not include other expenses such as the labor hours and resources it takes to hire, train, and manage the SDR.
By outsourcing sales in the beginning stages of your business’ growth you can take the time necessary to build an in-house team without sacrificing investments in research, development, and customer satisfaction.
Shortened Sales Cycle
Because lead generation and customer acquisition are the top priorites of outsourced sales agencies, representatives are trained in the most advanced sales strategies and equipped with the latest marketing tools and technology.
As more data is collected based on campaign performance, adjustments are made to build more precise procedures around your unique position in the market.
More Efficient Sales Team
How much time does your sales team actually spend selling?2.67 hours a day…
Yep, out of a typical eight-hour shift the average salesperson spends over five hours researching prospects, composing emails, setting appointments, maintaining data, attending meetings, and maintaining data (HubSpot).
So while these top-of-the-funnel tasks are important to success, they are also time-consuming and monotonous.
By outsourcing the lead generation and qualification process of sales, your team can focus on what matters most … selling.
Cost-Effective Customer Acquisition
Labor expenses can account for as much as 50% of your sales revenue. That’s why when looking for ways to reduce your customer acquisition costs (CAC) it is important to assess productivity first.
But even if you do have a stellar sales team with a healthy CAC, attaining growth may require hiring more employees or investing in additional marketing tools. Both of which could take months before you see a return.
Prioritize Customer Retention and Referrals A mere 5% increase in customer retention can boost profits by 25-95%
While not directly related, you have seen by now how outsourcing sales can give your team more time and your company more capital. By freeing up those assess more attention can be directed towards improving customer relations, developing requested features, and seeking out referral business. All of which can drive up customer retention.
What Services Do Outsourced Sales Agencies Provide?
Some outsourced sales agencies go no further than appointment setting while others go as far as closing deals for your company. It’s important to know the full scope of services an outsourced partner provides.
Even if you won’t benefit from a particular service now, you’ll want to partner with an external team that will grow with your company.
Let’s go over what you can expect from an ideal outsourced sales agency
When outsourcing sales, the lead list is the starting point, but not all leads are curated equally. The quality of a lead list will make or break your customer acquisition.
You need to know where and how the leads are being generated.
Some sales outsourcing firms limit the number of prospects or accounts that will be contacted each month.
This can hinder sales performance and stifle growth. We recommend comparing your goals with prospecting limits before making a decision.
Email marketing can reach an ROI of up to 40:1 making it a pivotal part of any sales strategy. But with all the rules and regulations from the email service providers and government entities, there are a lot of things that can go wrong. Companies that specialize in sales development use a combination of marketing and verification tools along with email best practices to avoid potential pitfalls and penalties.
However, actually making it into inboxes is only half the battle. The content of the email has to persuade prospective clients to open and take action otherwise all that hard work to appease the powers that be will be for not. Outsourced sales agencies stay up to date with what B2B buyers look for in vendors making it easier to create meaningful engagement and win over prospective buyers.
There is a stigma around cold calling. Outdated methods that relied on volume to produce results are no longer effective.
Conversion rates via phone calls have dropped drastically leaving sales leaders wondering if cold calling is worth the hassle. It’s an understandable concern, but cold calling is not dead. In fact, 82% of B2B buyers book meetings with sales representatives that practice outbound outreach.
Reliable outsourced sales teams incorporate cold calling as an additional sales channel. But instead of focusing on a quota alone, sales representatives use a combination of research and keyword surges to increase connection rates with prospective clients in the buying process. Since 71% of decision-makers want to be contacted when searching for solutions, this can help bolster call conversions.
Social media is no longer reserved for B2C marketing.
4 out of 5 people on LinkedIn influence business decisions, making it one of the most powerful B2B lead generation platforms available.
Social selling on LinkedIn works best when combined with email marketing and cold calling through an omnichannel approach. There are a variety of strategies to choose from when campaigning on LinkedIn. Some outsourced sales teams focus on content marketing while others use LinkedIn ads and sponsored messages.
We have found that while these tactics can have an impact on brand awareness, the most successful method is an account-based marketing strategy focused on sending personalized, direct messages to build genuine rapport and interest.
Appointment setting services generally include prospecting, campaign management, and lead qualification. As one of the most common sales outsourcing services, appointment setting is the main focus for the majority of providers.
Success is measured by the number of qualified appointments booked per month. Working with an outsourced sales team that stays current with the modern lead generation strategies is key to maximizing results.
Customer onboarding takes sales outsourcing one step further by providing bottom-of-the-funnel services. Not only will the external sales team set appointments but will also assist in closing deals for your company.
That being said, customer onboarding is perfect for ramping up your startups, scaling your business, breaking into new markets, or simply augmenting your existing sales team.
Not all outsourced sales agencies offer customer onboarding services. If you believe you could benefit from sales executives specialized in closing deals, now or in the future,aim to work with a partner that offers customer onboarding as a solution.
What to Consider Before Hiring an Outsourced Sales Team
Not to overwhelm you but there are hundreds of sales outsourcing options available on the market today. This can make it difficult to choose the right one.
Many tech companies narrow their list down to the top B2B lead generation companies in the US, but even then you will find that each agency has unique strategies that make the decision more complex
We have found that these factors play an important role in determining the strengths and weaknesses of each sales outsourcing company so you can make a fair assessment of what fits your business best.
Just as you strive to employ people with relevant experience in your field, you should strive to partner with outsourced sales agencies that know your niche. Without a deep understanding of industry trends and norms, it can be hard to align internal and external teams on market fits, strategies, and goals. Many outsourced sales agencies take in clients from a wide variety of industries. This can make it difficult for sales professionals to become proficient in any one market.
Representatives will have a general understanding of all industries but are unable to directly relate to prospects’ needs and pain points.
Without industry knowledge, the ramp-up time for your sales campaign can be long and tedious; however, by working with an outsourced sales team that specializes in your industry outreach can start prospecting in as little as one to two weeks.
Becaus Location. Location. Location. It’s just as important in outsourcing as it is in real estate.
Because outsourcing is often synonymous with offshoring many people as a service (PaaS) providers exclusively hire individuals from the Philippines, Ukraine, or South America to perform sales and marketing tasks. This can be problematic as inherent language and cultural barriers tend to bring about miscommunication, misunderstanding, and mistrust.
When targeting decision-makers, especially c-suite executives, delivering a seamless transition from awareness to consideration is key to maximizing conversions. By partnering with an outsourced sales team that only hires North American sales professionals for customer-facing outreach you can feel confident that you’re providing the best sales experience for prospective clients.
Average Years of Experience
As Albert Einstein said, “The only source of knowledge is experience.”
When you outsource sales, you should view it as an investment in seasoned sales professionals who have spent years building relationships with prospects.
A well-established sales outsourcing partner employs talented representatives with proven track records. Take a look on LinkedIn to find the past and current tenure of potential outsourced sales representatives to determine whether or not the external team has the experience needed to perform.
Are You Ready to Partner with An Outsourced Sales Agency?
At Martal Group, we understand that outsourcing your sales is not an easy decision to make.
For over a decade, we have helped B2B tech companies like yours grow in the US market through business development strategies implemented by our expert sales executives.
As a top B2B outsourced sales partner in North America, we can provide you with the insight needed to make the right choice for your company.
Schedule a time to talk with Martal Group today.
Are these services right for my company?
Do you have a growing company focused on technology-based products or services?
Do you want to open more opportunities to sell your solution to other businesses?
If you answered “yes” to both of these questions then we should talk.
As one of the top appointment setting companies in North America, Martal Group has a proven track record of generating B2B leads that convert. Set up a chat today to discuss how B2B appointment setting can help you meet your sales goals and scale your company the right way.