The Difference Between Inbound and Outbound Sales

Introduction

Inbound vs. outbound sales is a topic that many people have strong opinions about. Some believe in the power of inbound marketing, while others say it’s better to focus on outbound sales. The truth is, there isn’t just one right answer for everyone. In this blog post, we will discuss the difference between inbound and outbound sales strategies so you can make an informed decision.

Inbound Sales

Inbound sales means that customers come to you on their own accord or as a result of an advertisement or referral from someone else. An example of inbound sales would be when you find a product online because it was suggested by another website you visited before coming to ours. Another way people reach out for products and services is through word-of-mouth advertising. If one person tells another about something good they found, then the other person might go investigate that product or service.

Inbound sales are a great way to grow your company since it does not require as much effort from the business. They only have to promote their website and social media accounts, which can be done with little cost. In addition, inbound methods produce more leads for companies since people often make purchase decisions based on what other customers have to say.

Outbound Sales

Outbound sales means that the company is actively seeking customers instead of waiting for them to come on their own accord, as in inbound sales methods. An example of outbound would be a telemarketing campaign or sending letters and emails through various marketing channels such as post mailers or email marketing companies.

An advantage of outbound sales is that it provides businesses with control over the entire sale process, which means they do not have to wait for customers to come to them first before selling their products or services. This also makes it easier for marketers because they can say whatever they want about their company and product instead of being more restricted by inbound sales.

Outbound marketing is also the most common type of sales strategy used today, which means that businesses are well-versed in how to do it effectively and efficiently. For example, telemarketers have professional scripts they use when trying to convince people over the phone to buy their products or services. Another advantage outbound methods have over inbound is that they can reach a much larger audience, which makes up for the lack of engagement with customers.

What Is The Difference Between Inbound vs. Outbound Sales?

Inbound sales are lead-generation strategies that seek to pull customers through various forms of communication rather than making unsolicited contact with potential clients. Inbound marketing is creating content for your company’s website, social media profiles, and blog posts that spark interest in your product or service among frequent users visiting these channels. This form of promotion is often seen as a cost-effective way of increasing sales since your business can focus on building relationships with potential customers.

Outbound sales are marketing strategies that attempt to reach potential clients through contacts, such as phone calls and email. Outbound marketing is using advertising mediums like TV commercials, billboards, and radio ads to get your product or service noticed by a wider audience. This form of promotion can be very effective if you want to reach a lot of people all at once, but it can also be expensive and less targeted than inbound marketing.

When Is Inbound Strategy Right For You?

Now that you know the difference between inbound vs outbound sales, let’s understand which option is right for you. Following are the situations when inbound strategy may be the right choice for your company:

#1 If You Are a Start-Up Without Much Capital 

If you are a start-up without much capital, an inbound strategy can work wonders for your company. You need to build trust first with the audience and then sell them something once they recognize you as a trusted brand. This will help save on marketing costs which is one of the many benefits of implementing an inbound sales process at the early stages of your company’s growth.

Furthermore, if you are a local business and operate in the same neighborhood as other businesses, an inbound strategy is ideal for attracting new customers without spending much on marketing. It will help establish trust with potential clients, and at the end of it all, they would find themselves purchasing from you rather than your competitors.

#2 If Your Target Product Is Searched A Lot Online

If your target product is searched a lot online, then the best way to reach new customers is through inbound sales. With more people looking for products on Google or social media platforms like Facebook, you are more likely to capture their attention with an attractive blog post and informative videos about your business and how it can help them solve their problems.

If you’re looking to get your product in front of the people who are most likely to buy it, then outbound sales are what you should focus on. You can do this by cold calling or emailing potential customers and offering them a free trial of your service.

#3 If The Purchasing Decision Does Not Take Much Time

The decision-maker has not spent much time mulling over the purchase. This is common if you are selling a low-priced product or service that does not require significant research on the buyer’s part to make an informed decision. Maybe you are selling a product or service that is very easy to understand, needs few features to be effective, and/or does not require much research on the buyer’s part. This can make it easier for your customer to justify their buying decision.

When To Use Outbound Sales Strategy?

#1 When You Are Selling Expensive Products or Services:

When selling expensive products or services, the outbound sale is a good choice. You can use it to reach more people than you would if you used inbound alone. It costs more money but has better results for your business. For example, if you are a real estate agent and need to sell a house worth $300,000 or more. You can reach many people by placing an ad in the local newspaper, but it will cost you money for each potential customer reached.

#2 When Your Product Has a Long Sales Cycle

Some products need a long sales cycle before they get the actual sales conversion. These types require one to be patient and persistent with their prospect to avoid losing them in between. And since there is no direct communication, you must work extra hard on your marketing campaign and research these prospects while waiting for them to convert.

#3 When You Pay Hefty Commission To Sales Reps

When you can afford to pay high commissions to sales reps, it might be a good idea to go for outbound sales. While expensive, an outbound approach might work better when the time to market is important for your product or service.

Pros And Cons Of Inbound Sales:

Pros 

• Highly scalable- There is no need to hire an army of salespeople when you use inbound.
• Applicable to all types of business- Inbound works for all types of businesses, making it highly versatile.
• You don’t need a big sales team- Business owners are using inbound marketing to increase their sales, and they do not need a big sales team.
• Fewer sales friction: Sales reps don’t need to cold call or make appointments with prospects, resulting in fewer opportunities for them to drop the ball.
• Increase Brand Awareness and Visibility: The very act of helping others with the information and solutions you know a lot about increases your brand’s awareness of numerous online and offline platforms. By creating great content that you will eventually share with your prospects, they are likely to be satisfied with the answers and solutions you’ve provided for the questions and problems. What’s more, they could even end up sharing this information on their various social media platforms, giving you leverage in other people’s consciousness. With this method, there’s less room for error as the team will most definitely opt to close sales more effectively and efficiently by only focusing on the relevant ones.
• Higher Level of Engagement: Inbound sales give you the ability to personalize your content and, you know what they say, the most impactful sales tactic is that human touch. With this strategy, your inbound sales team can engage with buyers and build a robust connection. This, in turn, will let your prospective consumers move down the buyer’s journey seamlessly through the right type of content.
• Focus on Better Leads: There’s no denying it: outbound sales require a lot of guesswork. On the other hand, inbound sales use available technology where features like lead scoring can be used. This is an excellent way for a team to understand and determine which lead is a good fit or not.

Cons 

• A lot of initial efforts- Blogging, social media posting, and content marketing takes a lot of time at first, and it will take time before you’ll begin to see results.
• Time-consuming- Inbound sales do not happen overnight, and it takes a lot of time to start seeing results.
• Not suitable for expensive products- If you sell big-ticket products, inbound sales will not be the best way to sell them.
• You need a versatile sales team- if you want to take this route, your sales team must be able and willing to do more than pitch products.

Pros and Cons of Outbound Sales

Pros: 

• It works even in the digital world- The practice of outbound sales works even in the digital world, which is constantly changing. This is because it can be used in tandem with digital marketing.
• It is predictable- Outbound sales are predictable since it uses a consistent approach. This means the marketing team knows what to expect and can adjust accordingly or be prepared for emergencies.
• The results are immediate- The results of outbound sales are immediate and tangible. The team knows if they succeeded or failed because the numbers don’t lie.
• Much better lead generation- Outbound campaigns can pinpoint which leads are worth pursuing and which aren’t, making them successful in generating more revenue for your company.
• Measurable KPIs: For outbound sales, it’s easier to measure the methods used to deploy these techniques. The conversion rates through cold calls and cold emails can be easily checked. Furthermore, various tools allow teams to send cold emails and analyze their email open rate and response rate. This data will then help the teams recalibrate their strategies should they need to do so.
• Best for Startups and Small Businesses: Since new businesses start their journey with limited assets and investments, their main goal is usually to achieve the break-even point. Outbound sales is an excellent method for them as it wouldn’t cost much. They can directly move forward with finding their leads, nurturing relationships, and closing deals.

Cons: 

• The bad reputation of outbound sales- Outbound sales have a bad reputation and are often compared to cold calling. This only discourages potential customers from buying into your brand, which can affect the company’s revenue in the long term.
• You’ll also be interrupting people- You’ll also be interrupting people, which is not the best way to have a conversation. Most of your leads are less likely to engage with you if they feel like you’re constantly bugging them.
• You need the right sales tools- You need the right sales tools to have a successful outbound campaign, which can be costly. A wrong approach will fail you and cost you money that could’ve been invested in something else.
• It’s Not Sustainable: Imagine all the calls and emails your sales team will have to go through every day to find the right person. With outbound sales, you’re taking a shot in the dark. There’s no guarantee that a prospective customer will have a positive response to what you are offering.Now that inbound and outbound sales have been defined, it’s to see where they differ. 
  • Sharpshooting versus Scattershot. Inbound sales use content marketing that is tailored for each stage of a buyer’s journey. In direct contrast with outbound sales, inbound is more precise in that everything is connected to the buyer persona. It’s all about nurturing a relationship with a prospective buyer through a sales pipeline and building trust along the way.
    On the other hand, outbound sales utilize mass emails and calls regardless of the potential buyer’s current needs. Sales representatives who use this method often waste a lot of time pushing demos and emails, making a targeted sales approach close to impossible.
  • Multi-Channel Sales versus Single Channel Sales. Inbound sales build its critical brand mass across different channels to generate more robust closing rates. On this, outbound sales are less integrated; therefore, it has fewer customer touchpoints.

  Considering the digital world landscape today, it might seem like inbound sales is a much better option. The truth is, you need a mix of both to grow your pipeline. While you can heavily rely on content marketing to capture leads online, you may want to look into outbound methods to follow up on those leads, qualify them, and close the deals.

  Building Strong Inbound And Outbound Sales Strategies

  You need to build a unique strategy that caters to the difference between inbound vs. outbound sales and help in creating a unified sales strategy. Here are some strategies to build outbound and inbound sales:

  • Strategic Goals- When you’re picking a sales approach, it’s important to consider your company’s overall strategy. Some companies might be focused on growth and market share, while others may want to focus on profitability or customer satisfaction.
  • Define Performance Expectation- Define what is expected of the sales team. For example, revenue goals or the number of new customers acquired. This will help to determine the best approach to create a sales strategy.
  • Role Assignment- The role of a salesperson is to attract customers, and the job of marketing is to create demand. So as you can imagine these two departments might not always see eye-to-eye, but they must work together for your business to thrive. Delegate the responsibilities based on the set KPIs, and it may require collaboration across different departments.
  • Identify The Tools You Will Need To Support Inbound And Outbound Sales Goals: Consider the tools that you will have to invest in to cater to inbound and outbound sales objectives.
  • Determine How Your Team Will Report Out On Performance: Are you looking for a weekly report? Are you considering trade show attendance as part of the performance metrics? Will your team be required to present product updates at regular intervals, or will they need to close their doors and communicate exclusively with leadership? You’ll want to make sure that there are very clear lines of communication throughout the company, especially between the sales team.
  • Define Skills And Methodology Your Sales Team Requires: Layout the skills and methodologies that both inbound and outbound teams need to employ. Moreover, these should align with the processes and help with the bottom line.

  Inbound And Outbound Sales Best Practices

  When it comes to inbound vs. outbound sales practices, the way you communicate holds prominence. Following are some of the best practices that will ensure that your inbound and outbound sales strategies work effectively:

  Uncomplicate The Sales Conversation

  The biggest challenge is simplifying the conversation so prospects are never confused. Making it simple means eliminating all jargon, nomenclature, and buzzwords from your vocabulary. Don’t let self-imposed limitations limit you either – keep an open mind about everything while talking with potential clients. Craft your message around positivity and confidence. If you can stand behind what you’re selling, then prospects will feel more comfortable buying from your business. Moreover, you should leverage a connection point to build the conversation.

  A sales call is a conversation. That means you have to actively listen to get the most out of it. This entails being present during your interactions with prospects, even when they’re not talking about their business or industry-specific. It also helps if you ask relevant questions that are directly related to what the client wants. Just don’t overdo it

  If you can find a way to be helpful and informative in your approach, prospects will see how valuable your business is. The key takeaway here is that sales conversations should never feel like an interrogation or make people uncomfortable. They need to be open-ended so both parties can ask questions and find the best solution together.

  Customizing Messaging for Current and Prospecting Customers

  Make sure your message is personalized for current customers. If you’re emailing everyone on a list, make it clear who the message is coming from. Are they getting an order update? Or maybe just someone reaching out to say hello? If this isn’t immediately evident in the subject line, it will be a turn-off for customers using personalized messages.

  You can also create specific messaging that targets your potential customers based on their stage in the buying process. If you know they’re just getting started, introduce them to some of your products and services with a more general message. But if they’ve already expressed interest in the product, tailor your email to focus on the next step in their journey.

  You know how it feels when you get automated marketing or sales calls that ask if this is a good time. Of course, it’s not! So don’t send out mass emails with generic messages.

  If you’re emailing everyone on a list, make it clear who the message is coming from. Are they getting an order update? Or maybe just someone reaching out to say hello? If this isn’t immediately evident in the subject line, it will be a turn-off for customers used to personalized messages.

  Coalesce Support Among Decision Makers

  Buying decisions are made by groups today; therefore, the sales team must coalesce support among different decision-makers and ensure they are communicating with the buying team. To build strong support among various stakeholders, professionals must ensure that:

  • They are respectable as the primary contact.
  • They deal with resistance from insights rather than being defensive.
  • They understand the needs of the customers and help them make informed decisions.

Setting The Right Inbound and Outbound Sales Teams

Setting the right inbound and outbound sales teams is important for your business. The former should be well-trained to handle any inquiries that come their way, while the latter must have a strategy to back up their efforts to maximize results.

Conclusion

Moreover, if you still lack inbound leads, you can opt to use outbound techniques to prop up your funnel. It doesn’t have to be a competition. Inbound vs. outbound sales? That shouldn’t be a question anymore! Nowadays, it should be inbound and outbound sales.