Economies of Scale When Outsourcing Sales to a Sales Agency

Introduction: The Impact of AI and Automation on Sales Outsourcing

With the recent trends in AI and automation. I’m bullish on the possibilities that sales outsourcing opens up for their client in the execution of their mandate. We are seeing across the board new economies of scale and more importantly efficiencies that can be tapped into better than internal teams could.

For example, us as the sales partner can negotiate better deals on marketing and sales tools due to their larger volume of purchases, leading to cost savings. We just did that with our CRM as we hold a bigger sales team at any time than most of our clients.

Niche Expertise: Leveraging Specialized Knowledge

Another efficiency that has been unlocked is that, as sales partners, we often employ experts with niche skills who can handle multiple clients, spreading the cost of their expertise across a broader base. Clients come to us for cybersecurity expertise or Regtech expertise, among others, for example.

But they also come to us to enter Europe in an efficient fashion. This is where we shine and are enabled to support them and their growth. We have the learnings from previous campaigns that have been led for similar clients, as well as from other campaigns being driven for different clients.

Optimized Processes and Workflows

Refining Operations for Cost Efficiency

Established sales partners have refined their processes and workflows, leading to more efficient operations and reduced costs per sale. We have seen tremendous efficiencies in our capability to size a Total Addressable Market (TAM), drive accurate targeting, and iterate on the messaging.

High-Volume Conversations and Knowledge Sharing

We are able, with a part-time resource, to hold up to 92 conversations in a week, for example, with decision-makers. This also means your speech and objection handling need to be on point for the topic at hand. Great sales agencies share their knowledge with you too. We believe in having a shared go-to-market document dedicated to your campaign and its specificities.

Anonymized Data for Strategic Insights

We also believe in sharing, when possible, anonymized and authorized recordings with you pertaining to your campaign from dedicated software.

Training and Recruitment Efficiencies

Reducing Costs Through Shared Resources

The cost of training and development for sales staff is spread across several clients, lowering the expense for each individual business. This enables your partner to develop sales training programs that could eventually rival the likes of Salesforce or Oracle.

Hiring and Performance Management

They are in charge of making great hiring decisions, training, and ensuring great delivery. It is not uncommon for partners to rotate salespeople who don’t perform on your missions. It is also your partner's responsibility to make firing decisions and replace salespeople who don’t perform across multiple clients.

European Expansion: Facilitating Market Entry

Leveraging the partner’s existing infrastructure can facilitate entry into new markets without the need to invest heavily in local operations. We see this with countries like France, for example, where the administrative cost as well as the labor laws make it a difficult yet enticing country to penetrate. We enable our clients to grow there without the hassle those parameters cause.

Low Overhead: Reducing Fixed Costs

Fixed costs such as office space, utilities, and administrative support are distributed among multiple clients, reducing the overhead for each. This approach helps especially in the early stages of entering a country to avoid burdening the company without having gone through a series of specific market validations.

Reporting and Analytics: Driving Data-Driven Decisions

Detailed Reporting for Continuous Improvement

As part of knowledge sharing with you, a good sales agency partner should be able to send you detailed reporting identifying the core progress metrics around results, but also go into more depth about the secondary metrics, informing you of areas of potential improvement and progress.

Measuring for Efficiency

A detailed view of the ratios will enable you and your partner to drive more results with the same resource allocation. With automation and reach, sales efficiency is crucial. But it needs to be measured to be improved.

Conclusion: The Future of Sales Outsourcing

As technology progresses and the need for big teams diminishes, it is becoming more common for companies to turn to outsourcing their prospecting or sales efforts. We believe that the right sales agency should be a sparring partner and not just another pair of hands.

Sales Agencies as Strategic Partners

The expertise in strategy, the accumulation of data, and hands-on knowledge make it a viable solution to benchmark your existing team. They can also be used to trailblaze a new territory or vertical and are often sent first when launching a new product. They act as an extension of your team, and if you provide them with the enablement they need, they can grow your company FAST.

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