Why a Tech Startup Should Outsource Sales for U.S. Market Penetration How does a tech startup break into a new target market? They can do it the hard and expensive way, by hiring lots of people in different regions to see what markets are feasible – the “spray and pray” sales approach, if you will. Or, they can do it the easy and insular way, by expanding into a market based on the experience or location of their current sales force – the “warm body” approach. There is, however, a more strategic and deliberate way to penetrate new markets: Sales Outsourcing Here are four reasons why a tech startup should consider outsourcing their sales force to penetrate new markets: 1. It offers an objective growth strategy. With sales outsourcing, you aren’t limited by your sales person’s expertise or location. Instead, you have access to sales people with experience in whatever markets or verticals you want to explore. You can seed a number of verticals, and let the market decide where the “low hanging fruit” is and which markets are best for you. Armed with this proof of what the market will bear, you
Transcript
Why a Tech Startup Should Outsource Sales for U.S. Market Penetration
How does a tech startup break into a new target market? They can do it the hard and expensive way, by hiring lots of people in different regions to see what markets are feasible – the “spray and pray” sales approach, if you will. Or, they can do it the easy and insular way, by expanding into a market based on the experience or location of their current sales force – the “warm body” approach.
There is, however, a more strategic and deliberate way to penetrate new markets: Sales Outsourcing
Here are four reasons why a tech startup should consider outsourcing their sales force to penetrate new markets:
1. It offers an objective growth strategy. With sales outsourcing, you aren’t limited by your sales person’s expertise or location. Instead, you have access to sales people with experience in whatever markets or verticals you want to explore. You can seed a number of verticals, and let the market decide where the “low hanging fruit” is and which markets are best for you. Armed with this proof of what the market will bear, you can then decide how to allocate your resources to harvest the fruit.
2. It provides multiple entry points for superior market penetration. At Mansfield, we have sales people with industry experience calling into healthcare, energy, financial services, manufacturing, and other markets on your company’s behalf. Because they are not distracted by following up on current leads, they can focus on breaking into these new target markets. The responses you get from these calls can help you determine which markets are hot and which are duds.
3. It enables market segmentation and allows you to develop different messages for each market. Research shows market segmentation works. Customers
and prospects want a sales person to “know” them, to understand their industry and offer a solution to their unique problem. At Mansfield, we work with clients to develop the different messaging for each market so the sales messages can be highly targeted. A tech start-up doesn’t have the time or the people to do this.
4. It gives you flexibility and options. Not every start-up has a wheelbarrow full of VC cash at its hands – in fact, most of the startups we work with are very cost-conscious. Outsourcing sales allows you to take advantage of a variable cost model and gives you the option of ratcheting resources up and down as needed. Outsourcing is always a more flexible option than having permanent staff.
When you’re a tech startup that wants to grow, you can’t rely on a “gut feel” or on one sales person’s experience in one market. If you want to expand into a number of markets and grow in a strategic way, sales outsourcing makes sense. It helps you learn which markets are best for you, it provides you with the right sales people to penetrate those markets, and it gives you the flexibility to scale when you’re ready.
To find out how, Virtuoso Sales Solutions can help you grow your company, kindly contact Munish Chawla at [email protected] OR Jaya at [email protected]
