What Does it Mean to Outsource Sales And Marketing? The Why and How of Outsourcing Your Pipeline
Whether in business for ten months or ten years, you’ve probably taken a ride on the sales and marketing struggle bus at one point or another. Sometimes riding that bus feels like your Keanu Reeves in Speed, just trying to maintain momentum so the whole operation doesn’t “explode.”But even Keanu couldn’t save the day on his own.
Oftentimes, no matter how well-trained and dedicated a team is, it takes an external perspective to understand the full scope of a situation. And sales and marketing strategies are so full of variables that partnering with an agency has been an increasingly popular decision for startups and enterprises alike.
Still, not every revenue leader has worked side-by-side with an outsourced sales and marketing company, so many are uncertain of what to expect. Here we’ll unpack just what it means to outsource sales and marketing to a trusted provider, along with some of the benefits most companies experience during their partnership. Finally, we’ll touch on some of the important factors to consider when vetting out potential outsourced firms. But first, we’ll define what outsourcing sales and marketing means.
Let’s get to it!
What is an Outsourced Sales and Marketing Company?
An outsourced sales and marketing company is a third-party provider that specializes in generating leads, nurturing prospects, and finalizing sales for other businesses.
This type of agency typically takes on the entire sales process from start to finish, including lead generation, appointment setting, and closing deals. However, outsourced sales and marketing partners are often flexible, giving clients the opportunity to choose the services they need help with the most.
What are the Benefits of Outsourcing Sales and Marketing?
Outsourcing is often synonymous with cutting costs, but there is more to it than that.
Outsourcing sales and marketing allows for a more comprehensive approach to customer outreach. To be honest, there’s just so much to do when it comes to generating leads and closing deals that, unfortunately, some of the most important tasks are neglected — like prospecting and following up. But by outsourcing, you can ensure that every aspect of the buyer’s journey runs like a well-oiled machine.
Here we’ll go over some of the ways outsourcing can help you make the most of your marketing efforts and resources.
Reduces Overhead Costs and Other Business Expenses
So let’s tackle the most obvious factor first. Outsourcing sales and marketing is a cost-effective option, especially in times of increased staff costs and attrition. In fact, 80% of small businesses have chosen to outsource at least one process to save money. You’re essentially gaining the immediate advantages of a fully ramped team of professionals without investing in the hiring and training. This can be especially effective for SMBs as it helps them quickly reach a wider audience for less.
Keep in mind that while outsourcing does allow you to maintain a smaller team — dialing up or down expenses on an as-needed basis — it’s not about replacing your current staff. It’s about supplementing their efforts to increase efficiency and maximize resources.
Aside from labor costs, outsourced partners reduce the burden of other expenses like marketing platforms, expensive contact databases, and additional office space so you can put more money into product development and customer success.
Generate More Leads with a Specialized Team of Sales and Marketing Experts
Certain vertical industries that are hyper-focused on one particular field benefit from outsourcing their sales and marketing efforts because of their inexperience in the strategies and processes.
Take B2B tech companies, for example. Most team members are engineers and developers trained in specific applications and coding languages. While talented, they lack effectuality in customer conversion. By partnering with the right outsourced company, these teams can employ experts who have successfully generated leads and closed deals for companies in the same sector — maybe even competitors.
In addition, outsourcing sales and marketing can help revenue leads develop ideas for new techniques. Because consumers quickly become numb to recycled lead gen tactics, strategies and campaigns have to be adjusted constantly to optimize for customer acquisition. Outsourced sales and marketing firms have a finger on the pulse in various verticals and channels, which makes them agile when faced with stagnant or declining metrics.
Launch New Products and Services Without Any Prior Experience
One of the hardest parts of launching a new product or service to the market is finding the right strategy. Only 40% of all products actually reach the market, and even then, only 60% of those products yield revenue. Think of it this way, once you make it out of the development phase, you’re just beginning your marketing journey. You still have to spend time developing, testing, and optimizing campaigns in order to hone your targeting and messaging. On top of the dreaded trial and error process, you also have to invest in and incorporate new marketing platforms and maybe even train new employees. Hiring an experienced coach with a professional coaching contract template might be a beneficial choice.
All of this can take months to work through, and that’s time you don’t have if you want to stay ahead of the competition. An outsourced partner can provide data to help assess the target audience size and product-market fit, as well as forecast your potential sales cycle compared to similar companies. By outsourcing marketing for a new solution, you can expedite the go-to-market strategy, acquire customers faster, and be well on your way to generating recurring revenue.
Quickly Establish Your Brand in Underserved and New Markets
Entering a new market can be just as challenging as launching a new product or service. Resource constraints — whether it’s time, employees, or capital — can really put a damper on a company’s ability to pursue a new genre of leads. B2B sales outsourcing companies can focus on a specific vertical or geographic market, so you can expand your reach without taking time away from your mainstream marketing campaigns.
How to Choose the Right Outsourced Sales and Marketing Provider?
It takes time to find the right provider. Outsourced agencies use a range of methods to generate leads and increase sales, so the right provider for your company will depend on your unique business model.
Let’s go over some of the key questions and steps you need to take before hiring an outsourced sales and marketing provider.
Understand Your Current Sales Process and What Needs Improvement
In order to successfully integrate outsourced sales and marketing, it’s crucial that both teams work together seamlessly. To do this, you need to fully understand your current sales process and be able to translate it to the potential provider.
In doing so, the outsourced sales executives or marketing experts will be able to diagnose and propose solutions for areas that need improvement in your lead gen and customer acquisition processes. And, if you already know where your team is lacking, you can use the outsourced agency’s assessment to verify if its tactics align with your business practices and ideal outcome.
Outline What You Want from Your Outsourced Partner
When choosing a provider for outsourced sales or marketing, you must be clear about what your company needs. It’s important to ask yourself what you want out of the relationship and what you can afford — both from a time commitment standpoint as well as in terms of cost.
Because outsourced marketing agencies and sales firms specialize in different strategies, you’ll need to find a partner that has experience in targeting the audience you serve. Are you looking for inbound marketing or outbound sales services? Do you want to focus on social media ads or cold email outreach?
It’s essential that the provider also focuses on the metrics that matter to you, and they’re transparent in their reporting so you can accurately measure success. The goal here is to find a reputable partner with the skillset required to meet your company’s objectives with an ROI that makes financial sense.
Interview Potential Outsourced Sales and Marketing Companies
Hiring an outsourced sales and marketing company should kind of be like hiring an employee. After all, these external experts will work closely with your internal team.
Ask vendors you are vetting about their knowledge in your industry and what results clients similar to your company have experienced. Request case studies, testimonials, or other materials that demonstrate their ability to execute on whichever function you’re looking to outsource. Questions like these should never blindside a trustworthy agency. Reputable outsourced partners’ usual plan of attack should be outlined in detail.
The provider’s reporting expectation and sales analytics are also important considerations. How often are reports delivered? What metrics are tracked, and how are they measured? How is data used to assess campaign health and optimize results?
Much of this information may not be mentioned on the provider’s website. For those outsourced teams that you are seriously considering, schedule a demo so you can get an idea of what the service is like.
Don’t Be Afraid to Ask for References
While conducting research is imperative to making an informed decision, speaking with references can be equally enlightening. Through references, you can gain a client’s perspective on the level of service potential partners provide in a way that can’t be obtained from simply reading review websites. While it may not be the most impartial way of assessing your options, it can be a great addition to your vetting process if you ask the right questions.
Conclusion – Are You Ready to Hire a Marketing and Sales Outsourcing Company?
So the big question is: are you ready to make the leap? Hiring an outsourced sales and marketing firm is not a decision to be taken lightly, but we hope by now you have a clear understanding of your next steps.
While talking about outsourcing in the workplace can be a touchy subject, discuss the benefits with your team and explore your options. Interview some potential partners to get a feel for the process as well so you can decide for yourself if outsourcing sales and marketing is right for you.