In the realm of medical device sales, there's an ongoing debate that's been stirring the industry - Inside Sales vs. Outside Sales. These two approaches represent different strategies, techniques, and philosophies, and the choice between them has sparked endless discussions among medical sales professionals. The burning questions are: which approach is more effective, and which one yields higher conversion rates?
Inside Sales, rooted in virtual interactions and digital connectivity, has transformed the way we approach sales. Meanwhile, Outside Sales, characterized by face-to-face meetings and traditional handshakes, remains a steadfast approach in various industries, including the ever-evolving field of medical device sales.
Traditionally, these two approaches had distinct roles in the sales cycle. However, the lines between them have started to blur. The influence of technology on the sales pipeline has led to a significant overlap, prompting many companies to adopt hybrid sales strategies or even transition fully to Inside Sales.
So, which sales approach is right for your medical device business? Should you lean more towards Inside Sales or stick with Outside Sales? In this article, we explore everything you need to know about these two strategies, shedding light on their strengths and weaknesses in the context of the medical sales market.
Inside Sales: Revolutionizing Medical Device Sales
Inside Sales refers to a sales strategy where sales representatives engage with prospects remotely, typically through phone calls, emails, video conferences, and other digital channels. Inside Sales reps typically operate from their offices or homes, leveraging technology and virtual tools to connect with potential buyers.
In the medical device industry, Inside Sales is commonly used for generating leads, nurturing relationships, and closing deals through remote interactions. Interestingly, research by McKinsey reveals that over half of all sales activities now involve remote interactions, reflecting a preference among buyers for this model.
Advantages of Inside Sales in Medical Device Sales
The influence of Inside Sales in the medical device market is undeniable, with Gartner projecting that by 2025, 80% of all transactions between suppliers and buyers will occur digitally. Here's why Inside Sales has gained such popularity:
Flexibility and Agility: Inside Sales professionals enjoy greater flexibility in their daily routines. They can swiftly adapt their approaches, messaging, and strategies as market dynamics and customer demands evolve. This agility allows businesses to stay competitive and seize emerging opportunities.
Cost-Efficiency: Inside Sales eliminates the need for extensive travel, reducing expenses related to in-person meetings, transportation, accommodation, and meals. This cost-effectiveness benefits both companies and sales representatives, enabling them to allocate resources more efficiently. Research indicates that Inside Sales reps spend 35% of their workweek selling, compared to 22% for their Outside Sales counterparts.
Enhanced Reach and Scalability: By harnessing the power of Web 2.0 and innovative digital tools, Inside Sales teams can connect with a larger number of prospects in a shorter timeframe. They are not confined by geographic regions, allowing them to expand their reach and engage with prospects on a global scale, thereby generating more leads.
Challenges of Inside Sales in Medical Device Sales
While Inside Sales offers numerous advantages, it's not without its drawbacks, particularly in the medical sales arena. Here are some key disadvantages:
Increased Rejection: As the reach of Inside Sales extends, so does the potential for rejection. It takes an average of eight touches to secure an initial meeting with a new prospect, highlighting the perseverance required in the Inside Sales model. With the ease of saying "no" in virtual interactions, sales teams need to be prepared for rejection.
Teething Challenges: Transitioning to Inside Sales is not an overnight process. It involves lengthy ramping and training processes, along with competitive and time-consuming recruitment. Inside Sales teams can also experience higher turnover rates, making team retention a challenge.
Outside Sales: The Traditional Approach
Outside Sales, also known as field sales, involves sales representatives engaging with prospects and customers in a more hands-on manner, often outside traditional office settings. It's considered the traditional approach to sales and is characterized by face-to-face meetings, sales presentations, trade show participation, and in-person demonstrations.
Outside Sales professionals typically have specific territories and are responsible for building relationships, generating leads, and nurturing prospects within their regions.
Advantages of Outside Sales in Medical Device Sales
Outside Sales has stood the test of time for good reasons, especially in industries like medical device sales:
Stronger Buyer Relations: Outside Salespeople are evaluated based on their ability to build strong relationships with customers. Meeting clients in person allows reps to better understand their needs, address concerns immediately, and customize their approach based on real-time feedback. Personal connections fostered by Outside Sales often lead to more robust and long-lasting relationships.
Effective Demonstrations: For products that require up-close-and-personal demonstrations, Outside Sales offers a distinct advantage. Sales representatives can showcase the full features, benefits, and value of their offerings, enabling prospects to experience them first-hand. This interactive approach can be highly persuasive in the sales process.
Industry Expectations: Some industries, including pharmaceuticals, insurance, and real estate, rely on Outside Sales because it aligns with customer expectations. Face-to-face interactions are considered crucial for closing deals in these sectors, and an immediate shift to Inside Sales might lead to decreased leads and lower profits.
Challenges of Outside Sales in Medical Device Sales
While Outside Sales has its merits, it also comes with certain challenges, especially in today's fast-paced and digitally-driven world:
Limited Reach: Outside Sales can be challenging when targeting a wide geographic area or dealing with prospects in remote or hard-to-reach locations. Visiting every customer may prove impractical or cost-prohibitive, limiting the extent of market coverage.
Lack of Buyer Alignment: Modern B2B buyers increasingly prefer digital interactions, with 75% favoring remote engagement over face-to-face encounters. If your business can't facilitate digital purchasing or offer some degree of self-service, you risk falling behind in meeting buyer expectations.
Higher Costs: Outside Sales typically incurs higher expenses than remote selling due to travel-related costs and other expenses associated with in-person meetings. These additional costs can significantly impact a company's sales budget, especially when the target market spans a considerable distance.
Inside vs. Outside Sales in the Medical Device Industry: Making the Right Choice
For most modern medical device businesses, Inside Sales offers a more compelling option. This trend has been on the rise since 2020, growing 300% faster than field sales, according to SalesLoft. Inside Sales aligns with how modern B2B buyers prefer to make purchases—digitally. Companies with sales teams primarily composed of Inside Sales reps achieve a 9.8% higher quota attainment than those with field sales teams, as reported by HubSpot.
Additionally, the increasing prevalence of remote work means that sales representatives are less inclined to work in the field. This shift has made recruiting for Outside Sales roles more challenging. Prospects are also more likely to be working from home rather than in offices, making doorstep or in-person sales less feasible. These factors indicate that Inside Sales will continue to outpace field sales and be the preferred method where possible in the medical device industry.
However, it's crucial to note that Outside Sales is not obsolete. Instead, it demands a different approach. Businesses that opt for Outside Sales should invest in a robust customer management system (CMS) to effectively oversee their teams. Localization can also be key to ensuring there is no overlap or confusion within your sales territories.
Many businesses find success by adopting a hybrid approach that allows their sales teams to cover a broader area. In such cases, a diverse set of skills is required among the sales team to excel in both Inside and Outside Sales.
Final Thoughts: Adapting to the Changing Sales Landscape
Inside Sales is likely to become even more widespread, particularly as we move closer to a fully digital future. However, the power of both Inside and Outside Sales remains relevant, and the choice between them often depends on the industry, customer preferences, and buyer expectations.
In the ever-evolving world of medical device sales, businesses should remain open to experimentation, continually seeking sales strategies that align with their customer base's needs. Adaptability to future shifts in sales trends is key to long-term success.
If your organization lacks the time, resources, or expertise to navigate these changes independently, consider partnering with TechMedPro. We've assisted organizations of all sizes, from growing startups to Fortune 100 companies, in building future-proof sales strategies. Our unique, data-driven system, enables us to test innovative sales initiatives tailored to your offering, resulting in unmatched efficiency and improved performance. Ready to unlock your revenue's true potential? Contact us today.
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