Definition
Outside sales refers to the sale of products or services by sales representatives who go out into the field to meet with prospective customers. These representatives typically travel to meet clients face-to-face, often at their place of business. It’s a direct method of selling, contrasted with inside sales where transactions usually occur remotely.
Key Takeaways
- Outside Sales refers to the sales of products or services by sales representatives who directly interact with clients, usually at their place of business or residence. Unlike inside sales, outside sales professionals are not confined within the office premises.
- Outside Sales often demands extensive traveling and face-to-face interaction with potential customers. The goal is to build strong customer relationships and close deals on the spot or in a relatively short time frame.
- In the financial context, Outside Sales can mean salespeople selling financial products like insurance policies, credit facilities, investment plans etc. They primarily focus on acquiring new clients and expanding their customer base by creating personalized sales pitches based on customers’ financial needs.
Importance
Outside Sales is a crucial finance term as it refers to the sales of products or services by sales personnel who go out into the field to meet with prospective customers.
These individuals, known as Outside Sales Representatives, are essential as they directly engage with clients, understand their needs, and provide personalized solutions that can enhance customer relation and satisfaction.
Their activities largely contribute to a company’s revenue stream.
They also play a significant part in establishing and maintaining customer relations, brand reputation, and market presence.
The insights they gather from face-to-face interactions can also help the company align its offerings with market demands and trends.
Explanation
Outside sales refers to the method of selling where representatives engage with potential customers outside the physical business location or office. This is often accomplished through face-to-face interactions at the clients’ workplaces, trade shows, or other social business events.
The purpose of outside sales is to initiate and maintain direct personal interaction with potential clients, which has a greater impact and usually results in stronger, long-lasting business relationships. Whether it is product demonstrations, negotiations, or sealing deals, outside sales representatives often work more independently and have to be proactive.
They are responsible for finding potential clients, understanding their requirements, and then offering a tailor-made solution from their company’s portfolio. The primary aim here is to expand the client base, increase sales volume, and maximize profits.
Outside sales can also serve to build brand image and presence in markets that may have been untapped by the company.
Examples of Outside Sales
Real Estate Agent: Real estate agents are constantly engaged in outside sales. Their job isn’t office-based, rather it involves meeting with clients at different properties, showing houses, and negotiating deals. This is a perfect example of outside sales as it involves a lot of travel and face-to-face interaction with potential clients.
Pharmaceutical Sales Representative: A pharmaceutical sales representative often visits doctors’ offices, clinics, hospitals, and other healthcare facilities to promote and sell their company’s products. They arrange appointments, give presentations to doctors or pharmacists, and follow up on leads. This field also falls under outside sales because they are typically not in a fixed sales location.
Industrial Equipment Salesperson: Individuals in this role often travel to various office sites or construction sites to demonstrate and sell heavy machinery or other industrial equipment. Their goal is to make sales by pitching the product’s features, providing demonstrations, and building relationships with businesses that could benefit from the products. Their work is also categorized in outside sales as they have to venture “outside” to sell the offerings to potential clients.
Outside Sales FAQ
What is Outside Sales?
Outside Sales refers to the sales of products or services by sales representatives who seek out potential customers externally. They often do face-to-face meetings, phone calls, email, and other types of direct communication to meet and engage with potential clients.
What is the role of an Outside Sales Representative?
An Outside Sales Representative is accountable for creating and maintaining relationships with customers, implementing sales strategies and communicating product value to customers. They often travel to meet customers in their business or home environments.
How does Outside Sales differ from Inside Sales?
Inside Sales involve selling products or services remotely, usually over the phone or through internet while Outside Sales involves direct interaction, typically face-to-face, with potential customers. Outside Sales Reps may have to travel considerably and operate in various locations, while Inside Sales Reps typically work from an office.
What skills are vital for a successful Outside Sales Representative?
Key skills include excellent communication skills, resilience, persuasive ability, self-motivation, and customer service skills. They also need to be goal-oriented and have the ability to work independently.
How is the success of Outside Sales measured?
Success in Outside Sales is often measured by the achievement of specified sales targets, the acquisition of new clients, the retention of existing clients, and the overall growth of the business in the relevant sales territory.
Related Entrepreneurship Terms
- Field Sales
- Customer Prospecting
- Sales Territory Management
- Face-to-face Sales Meetings
- Travel Expenditures
Sources for More Information
- Investopedia: A leading website with easy-to-understand descriptions of finance terms, including outside sales.
- Business Dictionary: Provides definitions and articles about a wide range of business and finance concepts.
- Entrepreneur Magazine Online: A popular publication for business information and tips that also offers definitions and explanations of finance terms.
- Forbes: A leading source for reliable business news and financial information.
