Inside sales can either be used to sell a specific offering (e.g. a specific module, upgrades, services etc), target a specific segment (e.g. SME businesses), or to breakdown the sales process by driving a specific part of the sales pipeline. Bifurcating the sales process is where I have seen most b2b SaaS companies successfully leverage inside sales, to drive scale and efficiency into its pipeline. They do this by focusing the insides sales teams on driving the leads engine by generating qualified sales leads. According to a Harvard Business Review published study, 46% of software businesses surveyed reported a shift from a fields sales model to an inside sales driven model. Inside sales has over the last decade, become an increasingly strategic component of an efficient b2b SaaS sales structure.
Australian software companies are increasingly turning to the global market for scale, and are being forced to change their sales methodology. Taking a selection of the largest software SaaS businesses on the Australian Stock Exchange (ASX), quick analysis of their use of insides sales showed the following:Source: Capital IQ, Linkedin.com
Source: Capital IQ, Linkedin.com
The analysis indicates that:
In summary, as maturing software companies look to unlock continued growth, building a robust sales engine on the foundation of an Inside Sales capability it often a key enabler of scalability. In part 2, I will explore what are the ingredients to building an effective Inside Sales team.