What are the major differences between managing inside sales reps versus outside sales reps?

Managing inside sales reps offers greater visibility and access than managing outside sales reps. Sales managers can witness everything the sales reps do - their behaviors and process skills - first hand at a much higher volume. Real-time coaching opportunities during an inside sale are virtually impossible in a face to face call.

The requirements and charter of these two types of teams are drastically different and managers much understand this instead of jumping in and closing their deals. Some differences:

The inside teams are the tactical titans- focused on data, metrics, volume of contacts through campaigns, keeping them motivated through call blitzes and working with them to better partner with their outside reps, resellerts, etc.

The outside teams are strategic snipers- focused on territory, account and organization planning. The end of the sales cycle is most critical as their negotiating, ROI and competitive knowledge skills must kick-in.

The fundementals of managing a sales team are basically the same in a classical sense:

Goals
Targets
Pipelines
Communication
Results Measurements
Need Identification
Solutions
Presentation
Overcoming Barriers
Number of calls ( either on the phone or in person)
Closing
Client sell through
Client penetration
Follow ups
Client retention
All this being said it also is dependent upon how the inside and outside teams are utilized.:
Are the Inside teams farmers and the outside team hunters
Are the inside team classic telemarketers, or appointment setters if that is the case Josiane is spot on.
I have used inside teams for many of the above purposes.

managing though is coaching,mentoring,training,goal setting and assisting the reps when they really need us on a call or appointment, it is helping them to understand and better manage pipelines, and all the other bic elements of sales management so that remains constant.

There are profound differences between Inside Sales/Telephone Sales and Outside Sales. Viewing these positions as identical - and therefore attempting to hire, train, develop & manage them in the exact same way is a huge mistake.

The differences between Inside Sales/TeleSales and Outside Sales include:

1. Nature of the buyer. Inside Sales/TeleSales Agents are generally pursuing an individual customer rather than an organizational one. When they are pursuing an organization - it's more common for the buyer to be a purchasing manager or other relatively low level person. Outside Sales people generally call on organizations - and at higher levels. When they are calling on individuals - Outside Sales people are usually pursuing higher priced sales (because it's much too expensive to have Outside Sales people selling low-priced products and services to single buyers).

2. Buying cycle. Inside Sales/TeleSales Agents generally work within short buying cycles - and they'll know within a brief time span whether or not they are going to get a sale. Outside Sales may have to work for months to establish who the real buyer is and then to gain that person's trust. (This is another reason why Outside Sales have to be pursuing higher priced sales - since the cost of acquisition and lengths of acquisition are both so much longer.)

3. Influence factor. Over the phone, product features and benefits hold sway. There is a relatively low level of interpersonal influence. In person - client results - confidence in the sales person - and ability to form a relationship are as important as the product in many cases. This is why personal calls are much more than mere product demonstrations - except among the most inept Outside Sales people.

4. Competitive presence. For the Inside Sales/TeleSales Agent the competition is always present because the buyer is focused not on the sales presence - but on price comparisons & competing features. In person - the competition can be effectively removed - or at least subordinated - because the Outside Sales person has the buyer's sole attention & focus.

5. Nature of the sales person. People who sell "in person" must have much more highly defined relationship-building skills. Their grooming, vocabulary, sophistication, flexibility & speed of response must be more highly developed. Amongst other Job Fit Traits - Inside Sales/TeleSales Agents need more assertiveness - since it's so easy for someone to say "no" over the phone or avoid taking calls.

6. Levels of activity. Inside Sales/TeleSales Agents might legitimately produce dozens of quality calls a day - and an Outside Sales person only two or three.

Inside Sales/TeleSales Agents are rewarded for metrics such as sales quota, customer satisfaction, volume of calls taken (or placed) and product knowledge - to name just a few. Inside Sales/TeleSales Agents have to manage customer interactions constantly – in an environment driven by targets – while their job is constantly monitored electronically. Each of these realities contributes to employee stress – decreases job commitment – increases absenteeism – and potentially decreases the quality of service delivered to customers.

Inside Sales/TeleSales and Outside Sales are discrete and different pursuits - requiring separate Personality/Job-Fit/Temperament Factors. Someone who performs well in an Outside Sales role is rarely a Good Fit for an Inside Sales/TeleSales Call Center environment.

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You have to be blunt about this and I use very clear rules to evaluate my sales reps.
1)Outside: If you hit your numbers, I really don't care if you play golf, go to the Giants game, etc
if you don't, I stay on top of you. It is too easy for an outside rep to wake up at 8 and get done by 3.MY GOAL is to have my team fat and happy.
2) Inside, if you hit your numbers, I don't care if you show up late or take long lunches. If you don't, then I am on top of you, I make sure you make calls, move deals forward, and help you close, after all, MY GOAL is to have my inside team fat and happy.
3) Pipeline Management-Know your customers (inside and out). Know something personal about them, develop a connection- know the pipeline, and what is going to close and when.

sorry, never got to clarify as i was doing this on a commuter train.
The difference being, OUTSIDE reps have greater opportunity to 'Skate' so I spend more time with UNDER QUOTA REPS.

Inside reps don't have those luxuries so NOT micromanaging is a good reward for high performers.

No outside sales rep has time to skate ...if they do skate they are gone.....

Exactly, Norman.
but that is the difference between inside and outside.
You can view CDR records or listen in on inside sales staff. when their numbers are out of line you can clearly determine the problem.

It is highly likely that an outside rep whose numbers fall in comparison to others is "skating, double dipping, or just not working', hence, they draw fire on themselves and lose the flexibility of being an OUTSIDE REP.

However, are you going to fire the over quota sales rep that calls you from the 4th hole at Pebble Beach on Wednesday? You are talking about the big widget deal when you hear....444! I say, play away-just make your numbers.

just my $.02.

I hear you and if they are at Pebble Beach I hate them ( just kidding) they can be on the course ( with a prospect or client) NOT just for fun on my time...they should be prospecting,in meetings,etc....if they are not it tells me they are in a comfort zone and I want my reps hungry and have a desire to WIN BIG and beat yesterday....Now if they say "hey I need an afternoon off,or a day off I am burning out and they are hitting and exceeding quota on all fronts ( new business,client sell through,well qualified full pipeline etc I say go ahead I might even buy them a round of golf or a weekend at a hotel for the rep and a significant other etc...but show me you are working every day all day. Mike i know that is old school and we do have to be aware of the new generation of people in any form of the business world,they value social time more then people of my age did when we were in their shoes so there is definitely something to be said in favor of your post...

To answer this question it's important to include the set up, function and characteristics of both sales capabilities. In the situation of shared targets between a team of inside sales and field based reps e.g. driven by a common set of accounts (Corporate, Enterprise, Mid Market) inside sales reps do have a fundamental different role within the sales cycle e.g. focus on qualification, agenda planning, sales admin follow up, marcom campaign execution, account activation, structured farming and share of wallet plays of active accounts, line of business conversion etc. The KPI's and management focus are mostly activity and data driven and structured through an integrated sales/marketing calendar. Inside sales typically will be of less seniority and do have limited business acumen compared to field sales reps and so will require more and intensive coaching, based on individual performance indicators e.g. account coverage, depth (are the critical contacts and business functions covered within accounts), share of wallet and margin analyses, campaign results, effective talk time, data quality etc. If inside sales is covering a specific set of accounts and 100% accountable for the pipe line development, revenue and margin results, you normally see a more senior team of reps - most likely less needs for intensive coaching. In general inside sales is more of a process, data and activity driven management cycle, while field sales reps are more individual managed. An effective inside sales function is managed through e.g. a 13 week integrated sales/marketing calendar connected to a perfect week - dictating what kind of sales activities needs to be executed during the day. KPI of inside sales function are more detailed and focussed on sales behaviors, both productivity and quality. There is a stronger need to think about a stimulating and motivational working environment of an inside sale function e.g. regular spifs, brief team meetings, daily kick offs, sharing of the progress of objectives during the day etc. Talent management of inside sales is key - while most field sales reps are landed on a position within their career path, most inside sales roles are seen as a start function within sales. Managing expectations and keep the talent on board for 24-48 months is critical. Critical to show a career path within the inside sales capability e.g. by creating more senior roles based on type of accounts, hunter or farmer and team lead functions.