5 Common Sales Outsourcing Risks You Should Prepare To Mitigate
In today’s competitive market, some companies are effectively using sales outsourcing as a strategy to gain an advantage over their competitors.
The question is, should you?
Before deciding on whether sales outsourcing is right for your business, it is equally important to understand the common risks associated with sales outsourcing and put in place measures to mitigate them before you start working with a Sales Agency or Sales Freelancer.
Here are five risks most commonly associated with sales outsourcing:
#1 - Performance Management
When you outsource sales, you are entrusting the sales process to a third-party provider, which can feel risky because you won’t be able to directly control everything your Sales Agency or Sales Freelancer does.
Since the Sales Agency or Sales Freelancer is working with multiple clients, you may worry that they have less urgency and commitment to achieving your sales targets than an in-house sales team would.
This sense of risk can be amplified if the definition of success your Sales Agency or Sales Freelancer has in mind is not properly aligned to your business objectives and performance expectations or you, otherwise, struggle to hold them accountable for the results.
#2 - Integration Challenges
Integrating a Sales Agency or Sales Freelancer with your existing team can be challenging, if they are in a different location or have different approaches, tools, and systems.
If you select a Sales Agency or Sales Freelancer with operational attributes that are not compatible with your requirements, you can experience inefficiencies, communication breakdowns, and errors that can negatively impact the sales process.
For example, time zone differences. If you’re working with Sales Agencies or Sales Freelancers that operate in different time zones, it can lead to scheduling conflicts, delays in response time, and/or, if required to work outside of local business hours, can lead to burnout and reduced morale.
#3 - Industry and/or Product Knowledge
Sales Agencies and Sales Freelancers may not have a deep understanding of the unique complexities of your specific industry or product.
Like any new hire, this can significantly increase the amount of time it takes them to ramp up to full productivity, as they may lack the insights necessary to tailor their sales conversations to the specific hot buttons and preferences of your prospects.
#4 - Cultural Differences
Working with people from different cultures and who speak different languages can create communication challenges. For example, if you work with a Sales Agency or Sales Freelancer that operates in a different country, you may face cultural differences that can impact how they interact with customers, understand your product, and communicate with your team.
Misunderstandings or misinterpretations can cause confusion, delays, or errors that may affect service productivity, efficiency, and quality.
#5 - Security RisksWhen you outsource sales, you may be sharing customer data, financial information, and other confidential data with the Sales Agency or Sales Freelancer, which, naturally, can increase the risk of data breaches and intellectual property theft.
Common security risks associated with sales outsourcing include:
- Unauthorized access to sensitive information: If the sales outsourcing provider does not have adequate security measures in place, there is a risk that unauthorized individuals could gain access to your sensitive information. This could lead to data breaches or identity theft.
- Cybersecurity risks: Sales outsourcing providers typically rely on technology and software to manage their sales activities. If these systems are not properly secured, they could be vulnerable to cyber attacks that could compromise your sensitive data.
- Compliance risks: Depending on your industry, there may be regulatory requirements related to the protection of sensitive data. If the sales outsourcing provider is not compliant with these regulations, it could put your business at risk of fines or legal action.