Are Outside Sales Teams Still Necessary for Enterprise IT Software Sales?
We no longer think that successful enterprise IT software sales depends upon an outside sales component. We have come to this conclusion as the result of our direct experience over the last 3 years selling this type of commodity into enterprise business markets. We are not precluding our customers from establishing and maintaining this type of effort. Rather, we do not think that the market is requiring this type of representative, any longer.
If our position is correct, then enterprise IT ISVs can dispense with a lot of costs that, in the past, were considered mandatory. At a minimum, these costs include rent for remote offices, and some portion (likely significant) of regular travel and entertainment expenses. Once alleviated of these costs, enterprise IT ISVs should have some latitude to apply funds in other areas, for example:
- online marketing, which should include lead development campaigns, customer support, and brand management
- and wider attendance of industry events, conferences, seminars, etc
The return on investments in online marketing and a more extensive marketplace presence should be substantial, and, in all likelihood, far more than perpetuating out of date sales structures where outside sales personnel are located remotely, but, nevertheless, spend most of their time on the telephone, and, rarely, on the road visiting prospects and/or clients.
For enterprise IT ISVs that have not engaged in this shift in sales team architecture, we strongly advise implementing a reorganization as soon as possible. We think it makes sense to maintain a substantial inside sales effort. In fact, we have written extensively in this blog on many topics that reside at the core of inside sales best practices, not the least of which is teleprospecting. A coordinated, integrated direct marketing effort that looks, primarily, to online marketing communications opportunities to generate leads, with direct telephone follow up and efforts to engage with prospects is, in our opinion, a winning strategy in today’s enterprise business market in the United States.
Of course, it makes sense to reorient top producing sales personnel to new roles that emphasize making better use of the telephone as a method of engaging with the market, in conjunction with periodic attendance at market events, conferences, seminars, etc. Why lose top producers when, in all likelihood, they would rather stay on board and simply reorient to the new strategies?
Finally, the best location for inside sales teams is the head office. Obviously, for virtual ISVs without a bonafide headquarters location, remote home offices will have to serve, but for businesses with headquarters, it makes sense to centralize sales team efforts.
If you are thinking about your current cost of sales and would like to trim expenses sensibly, while preserving working components of your sales team, please consider IMB Enterprises, Inc. We have direct first hand experience delivering successful results in 2012 with this type of method (in other words, a very strong inside sales effort, with little or no outside sales component). Please either telephone us at +1 631-673-2929 or complete the contact us form on our web site. We will be happy to reach out to you to learn more about your needs.
© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved