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Business process outsourcing (BPO) is a common activity where one company contracts with another for a specific purpose. Sales BPO removes the sales element from a business and places it with a third party. This allows the third party to gather leads and contact these leads in order to sell the company’s products. In many cases, the process allows the original company to reach more consumers in hopes of increasing sales and revenue. Though the benefits certainly have tremendous upside with sales BPO, there are also disadvantages that exist in this process.
Outsourcing begins with reviewing and selecting a third party with which to work. Not all third-party companies are the same, especially with sales BPO. A company must look for a partner that offers high-quality services at a low cost. Using an outsourcing company should not significantly increase a company’s operating costs. If outsourcing is going to result in extremely higher costs than completing the task internally, this must have consideration with the company’s management team.
The quality of sales leads is also a factor with sales BPO. Sales leads come from information consumers provide in surveys, e-mail sign-ups, or through other data-gathering tools. A company looking to use sales BPO needs to assess the sales leads methods and quality of leads. It is typically not sufficient for a third-party outsource to simply provide copious lists of consumer leads. The information must contain customers who meet a company’s target market estimations.
A company should use outsourcing under particular conditions. Outsourcing costs are often a common reason for the use of sales BPO. Another reason for this determination, however, comes from a company’s current business processes. For example, if a company does not have the space or employees to start a sales team, this is a major issue. These items cost money and require training; smaller companies with few economic resources may find it difficult to engage a sales team for increasing revenue.
Business process outsourcing can be a difficult process to manage, especially for businesses that fail to understand this process. One problem may be the way the sales BPO team handles contacting potential customers. When the sales BPO team identifies themselves as part of the client’s business, consumers may attach negative associations with the firm due to the sales pitch. In short, the client may have little control over the BPO company’s activities. This can lead to problems between customers and the client, who will not often recognize the outsource company as the problem.