December 2007

Telesales vs. Direct Sales in a SaaS Sales Environment

By Ray Solnik, President & COO - OpSource

Telesales and direct sales can both play vital roles in selling software-as-a-service (SaaS). In both cases, however, the roles may differ from their counterparts in the on-premise software world.

Telesales

The ideal on-demand software sale requires no staff! Customers respond to lead generation campaigns by ordering the product online. OpSource's successful customers also enable their customers to begin free trials without staff involvement. Telesales then contacts the trial customers and converts them into paying customers. Other effective ways to use a telesales staff include:
  • ·  Closing lower end sales. Have telesales handle contracts worth (for example) $2,000/month or less so field representatives can focus on larger transactions.
  • ·  Handling inbound inquiries. This is especially important when the customer is in a geographical area not served by field sales staff � for example international.
  • ·  Selling to enterprise departments. Telesales representatives can often penetrate departments within large enterprises and make sales to those that have an immediate business need.
  • ·  Generating prospects for outside sales. By signing up customers online and remotely over the phone, these customers can be good prospects for outside sales or account managers to further grow and penetrate.

Direct Sales

Outside sales departments are more expensive than telesales, but can be worth it, especially when selling at the corporate level. Here are some ways to get the most value from outside sales:
  • ·  Focus on big accounts. The larger deals often require detailed due diligence and contract negotiations that are best handled by outside sales executives.
  • ·  Give them hot leads. Your field staff will be much more productive calling on customers who are already trialing your product vs. prospecting or even calling warm leads.
  • ·  Staff events. A Softletter marketing study and OpSource experience indicates trade events are a solid source of customers and those events should be covered by your outside sales staff.

(Ray Solnik is President and COO of OpSource, a company that delivers web applications and software as a service for on demand companies.)