Is outsourcing sales a bad idea?

Table of Contents

Many companies are switching to offshoring in order to generate more sales and achieve better production results. However, this measure involves both advantages and risks, and that's what we're going to look at on this page.

What is sales relocation?

Sales relocation is when a company goes to sell its products in another location. The move is usually from one country to another, but it can also be from an urban to a rural area, for example.

Why outsource sales?

The main reason for offshoring is the expectation of a better result, as mentioned above, but there are many other reasons why a company may choose to do so:

- Market saturation: competition is a frequent reason for relocation. In fact, when the market is saturated in a given location, it makes more sense to strengthen your business elsewhere to try and sell more, and avoid bankruptcy.

- Cost reduction: choosing a new location can be a strategic decision for a company. It can help reduce costs, and thus increase profits. For example, moving closer to raw materials avoids transport costs. There are also cases where labor costs in other countries are lower, and this can result in considerable savings.

- The legal reason: this concerns labor law and tax law. Indeed, taxes on company sales can be reduced in certain countries, and this is what drives companies to carry out their activities elsewhere. Labor laws also differ from country to country, and are sometimes more flexible.

What impact does offshoring have on lead generation?

Shifting sales means a change in consumer. This means you'll need to strengthen your sales force. Nevertheless, this change can be beneficial for generating more leads! You'll be dealing with a whole new world that's not yet familiar with your products, so you'll have the opportunity to establish new sales processes. For some advice on this subject, the basis of lead generation will be in the art of prospecting and sales advertising.

When it comes to prospecting, the online tool is the most effective mass communication tool, as everyone is currently on social networks. You'll need to set up a professional account to promote your company's name and products. If the company already has one, all you need to do is animate and energize it to mark your new presence. For example, a short video of the opening of your new point of sale, an advertising image or a launch event you're organizing, etc. Then interact with leads and prospects in text messages and comments.

For successful prospecting, you also need to know your leads' areas of interest, and target them using the marketing automation strategy (e-mailing, communication management, etc.).

To make your prospecting more effective, use the tools specially designed to assist you in all your online activities. These tools enable you to register and store your contacts in databases, schedule the sending of e-mails and emails, measure the effectiveness of your prospecting campaigns, personalize your notifications, and much more.

The benefits of sales outsourcing

The advantages of sales outsourcing are directly linked to the above-mentioned reasons.

First, there are the economic and tax advantages that enable the company to make maximum profit. This is due to reduced costs on salary payments, lower taxes, and so on.

Secondly, selling new products in a new location can be very fruitful when they appeal to targeted prospects and leads. Nevertheless, you'll need to make sure your marketing strategies are effective, and do everything possible to establish your brand image in the new territory.

As for the disadvantages of offshoring, these mainly revolve around the risks associated with the effectiveness of the measure. For example, new employees may be less efficient, there may be damage or loss of goods in transit, or ineffective marketing strategies may put the company at risk of loss in the event of falling sales, and so on.

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