Tactical control and cost minimisation when there is lack of expertise
Every Customer undoubtedly possesses the resources to apply in-sourcing, in other words to recruit, hire, and manage employees. However, finding the right professionals especially at the sales level isn’t the same as hiring a customer service representative or an accountant. That’s because sales recruiting is a specialty that most organizations simply don’t have. By taking sales candidates through the same recruiting and hiring process as other prospective employees, hiring someone who is good at selling in general may be inadequate for selling Customer’s specific products or services.
Corporate Policies vs. Sales Focus
Also, there are other factors to consider. Often organisations find that a particular product line is ignored or deliberately neglected because sales representatives have focused on bigger-ticket items to help them meet quota. This leads to lost opportunities for revenue.
Geographic Expansion, Economies of Scale, Crucial Milestones
There may be the perspective on the value to expand into a new geographic area, where there was no prior sales presence. In this case, the problems of recruiting the best people, training them, and managing them in a location far away from the home office require that the Customer has to review its expansion model.
However, doing these things can be cost prohibitive and may easily cause that the Customer misses out on new opportunities. Additionally, there may be a situation where time is of paramount importance. Prior to the launch of a new product, or when you are experiencing rapid growth, you need to scale up your sales force quickly. Again, you will face the daunting tasks of recruiting the best people, training them, and managing them—all during a time when your resources are strained and targeted elsewhere.
Cultural factors are critically important. No matter the size of Customer’s organization, the venture of creating a new culture that encourages the success across the board and especially for every member of the business development and sales team, adds immeasurable value in terms of increased sales and decreased turnover. This is one of the most difficult problems to encounter, resolve and make it profitable.